Work Perks 101: SUV Car Leasing Through Your Employer
Have you ever admired colleagues driving to work in their swanky new SUV and wondered how they could have afforded it? Well, they might be enjoying an SUV on lease, one of the best-kept secrets of corporate lease cars. Yes, car leasing through their employer! In this article, we will explore SUVs, the nuances of employee car lease and how you can drive your favourite SUV through corporate car leases.
So, let's dive into the world of SUVs and how you can drive one through a corporate car lease.
The rise of SUV love in India
The last few years have seen a phenomenal rise in the popularity of SUVs in India. In fact, SUVs now account for half of all passenger vehicle sales in India. What’s driving this transition from traditional hatchbacks and sedans?
India's booming economy has increased the purchasing power of the citizens. As more people embrace an urban lifestyle, they seek cars that align with their aspirational values. Hence, the appeal of SUVs has grown. With fierce competition among car manufacturers, there's a surge in innovative and improved SUV models.
A few standout factors for the rise in SUV sales include:
1. Road compatibility: With their high ground clearance and robust build, SUVs seem tailor-made for Indian roads littered with potholes and speed breakers.
2. Comfort & space: The roomy interiors and higher seating position translate into a comfortable ride.
3. Aspiration: In a society where cars often reflect status, the bold and muscular look of an SUV appeals to many Indians.
4. Affordability & selection: Manufacturers are offering a wider variety of affordable SUV models, making them accessible to more people.
No doubt the employees have swerved towards SUVs under their company car lease scheme. Several high-end SUV models are gaining popularity under corporate lease be it Mahindra XUV700, Scorpio N or Toyota Hycross. Other compact SUV gaining popularity with leasing are Hyundai Creta, Kia Seltos, Tata Nexon and newly launched Mahindra 3XO.
How does business car leasing work?
Car leasing is a popular alternative to owning a vehicle outright. In simple terms, you are renting the vehicle for a specified period (typically 3-5 years), with the option to buy it at the end of your corporate lease car tenure.
How does employee car leasing save tax?
Now, let us look into another interesting part - tax savings! With a corporate lease car scheme, your employer pays the leasing company directly as part of your cost-to-company (CTC) structure. This means it doesn't form part of your taxable salary. Moreover, depending on the corporate policy, expenses related to maintenance, driver salary and fuel can be reimbursed and excluded from your taxable salary over and above the vehicle leased - a win-win!
What happens when your corporate car lease ends?
After your employee car lease term ends, you have options to choose from! You can buy the car by paying the minimum residual value or upgrading to another model. But what if you're switching jobs during your lease period?
Here's how some of the leasing companies provide user friendly flexible options:
1. If the car is in your name and your new company offers a car lease scheme for employees, you can continue the lease and enjoy the tax benefits from your company's car lease scheme for employees.
2. If the car is in your company's name, you can surrender the car and take a new employee car lease at your new firm or buy the car by paying the remaining amount.
3. You also have an option to transfer the lease to a co-worker before changing jobs.
Conclusion
A corporate car lease through your employer can be an excellent financial move if you are looking to drive that dream SUV without breaking the bank. Not only do you enjoy tax benefits, but you also get flexibility with your corporate vehicle lease choice without being tied down by depreciation costs.
Whether you want to do an SUV car lease search or any other car of your choice, Quiklyz by Mahindra Finance offers you an array of options. With Quiklyz, you can easily drive a brand-new car registered in your name in four easy steps and have your dream car delivered directly to your doorstep!
