Car ownership is simple, right? You select a car, pay for it upfront or take out a loan, and voila! You have your shiny new vehicle sitting in your driveway. But what if we told you there's another way-an even easier way-that not only gives you the liberty to drive the latest models but also saves you from the hassle of loans, depreciation, and maintenance woes? Yes, we're talking about a car lease!
Here, we will find out the benefits of a car lease and how to use a car lease price calculator to see which is more profitable.
Why lease a car? Know the Benefits
Imagine driving in a brand-new sedan without worrying about its depreciation or maintenance costs. Sounds like a dream! With a car lease, this can be your reality. Car leasing is akin to renting a vehicle for a long-term period-usually between two and five years. Instead of bearing the entire cost of the car, you only pay for how much you drive it.
What does this mean?
For example, if you were to lease a ₹10 lakh car for 4 years with an estimated residual value (what the car is expected to be worth at the end of the lease period) of ₹4.5 lakhs, instead of paying the whole ₹10 lakhs upfront or via loan instalments, you would only be responsible for the ₹5.5 lakhs that the car depreciates over those 4 years.
Leasing also takes care of insurance and maintenance expenses-two major headaches for any car owner. Plus, it offers additional services like 24x7 roadside assistance and door-to-door maintenance. Isn't this simple?
To calculate car lease payment, you can use an online car lease calculator and find the exact amount you will have to pay.
How to calculate car lease payment?
The formula for calculating your monthly lease payment is simple:
Monthly Lease Payment = (Depreciation Cost + Rent Charge) / Lease Term + Taxes
But, you can also use the car lease price calculator. Here are the steps to use a car lease payment calculator in a simplified format:
- Enter Basic Information: Input the initial car price, residual value, lease term (in months), and lease factor (interest rate).
- Calculate Depreciation Cost: The calculator automatically computes the depreciation cost by subtracting the residual value from the initial price.
- Compute Rent Charge: Multiply the lease factor by the initial car price to find the rent charge.
- Add Taxes: Input any applicable taxes, like GST, into the calculator.
- Review Monthly Payment: Check the calculated monthly lease payment. Adjust inputs if necessary for different scenarios or preferences.
Conclusion
Leasing a car can be incredibly advantageous-it lets you drive newer models for lower monthly payments without worrying about maintenance costs or depreciation. Understand how to calculate your car lease payment with the help of a car lease calculator as it helps you make an informed decision about whether leasing is right for you. Just choose your car model, calculate the car lease payment and drive off a brand-new car.
But why stress over calculations when Quiklyz is here to simplify your mobility options? Experience the ease of car subscription to a brand-new car with Quiklyz. In just four simple steps, you can have your dream car registered in your name and delivered right to your doorstep!
FAQs
Q1. What is a car lease?
A car lease is a long-term rental of a vehicle, typically lasting 2-5 years.
Q2. Can I lease any car I want?
Yes! Depending on your financial capacity and credit score, you can lease any vehicle-from sedans to SUVs.
Q3. What happens at the end of the car lease period?
Most leasing companies offer you the option to buy the car at its residual price or simply return it and upgrade to a new model.
Q4. Is using a car lease calculator essential to calculate my car lease payment?
Absolutely! A car lease calculator can help you accurately calculate car lease payments every month by considering various factors like depreciation cost, rent charge or lease factor, and taxes.
Q5. Is car leasing more expensive than buying?
Not necessarily. While monthly lease payments may be lower than loan payments, other factors such as mileage limit and wear-and-tear costs need to be considered.
