Leasing – paying a monthly rent to use a vehicle for a fixed period – is growing in Indian cities, mainly for cars and
through employers. It suits some people very well and others not at all.
The pros
- Lower monthly outgo. You pay for the part of the vehicle's value you use, not the full price.
- A newer vehicle more often. Hand it back after three or four years and take a new one.
- No resale worry. Changes in used-vehicle prices are the leasing company's problem.
- Bundled costs. Many leases include insurance, servicing and road tax.
The cons
- You never own it. At the end you have paid for years and have no asset.
- Kilometre limits. Driving more than the agreed distance costs extra.
- Wear and tear charges. Dents, scratches and missed services are billed when you return it.
- Hard to exit early. Breaking a lease usually means a heavy penalty.
Our view
If you drive a lot, keep vehicles for many years or need a two- or three-wheeler for work, buying – new or used – is
almost always cheaper. A good used vehicle from an auction or AEXPRESS Auto Bazar gives you
ownership at a fraction of the new price.
