Get the Tata Capital App to apply for Loans & manage your account. Download Now

Blogs SUPPORT
Loans For You
Loans for Business
Investment
Insurance
Apply
Quick Links for loans
Quick Links for Insurance
Investment
Offers Quick Pay
Back

Equipment Finance

Avail Digital Equipment Loans
up to Rs. 1 Crore

  • Attractive ROIs
  • Customizable Loan tenure
Know More
Back

Equipment Leasing

Avail Leasing solutions
for all asset classes

  • Up to 100% financing
  • No additional collateral required
Know More
Menu  
 
Apply Now

Tata Capital > Blog > Generic > 6 Benefits of Corporate Car Leasing for Employees

Generic

6 Benefits of Corporate Car Leasing for Employees

6 Benefits of Corporate Car Leasing for Employees

Car leasing is an excellent way to provide your employees with a vehicle, making their commute stress-free. Not only does it make them more productive in the long run, but having a car lease scheme also works as an attractive incentive for new candidates.

Car leasing is better than traditional financial models because of advantages like easy credit approval, tax savings, and more. In this article, we will look at the benefits of corporate car leasing and understand why it is preferred by so many organizations today.

Advantages of Car Leasing

#1 No Down Payment Needed

The car you obtain is financed by a leasing company. So, as a lessee, you do not need to pay any down payment amount while making the purchase. This makes the leasing company the primary owner of the vehicle. So, how does this work in your favour? Well, all car-related expenditure, such as accessories, on-road price, and insurance, is included in the lease cost, which is paid for by the leasing company.

#2 Maintenance Benefits

All vehicles are subject to wear and tear. With time, their maintenance and repair costs rise.

When a leasing company leases a vehicle, there are two kind of arrangements, with maintenance covered called as wet leasing and without maintenance called as dry leasing. Under wet leasing arrangement, the leasing company  takes care of maintenance expenses. And as the lessee, you need not bear these expenses.

#3 Hassle-Free Car Replacement

With a car lease or an auto lease, you can replace or upgrade your vehicles at the time of lease renewal. And when you replace and upgrade your vehicles, you provide your employees with better comfort and greater safety.

And that’s not all. Easy car replacement is also beneficial in light of the vehicle scrappage policy and the green tax.

  • According to the vehicle scrappage policy (2021), all commercial and private vehicles that have been used for 15 years or more must go through a mandatory fitness check. If they fail the fitness check, they will be scrapped.
  • If the vehicle is less than 15 years old but has been used for at least eight years, the government will charge a 10% to 25% ‘green tax’ and renew the fitness certificate.

These two policies can make vehicle ownership a hassle for companies. Either your vehicle will get scrapped, or you will have to pay the green tax. But car leasing saves you the trouble!

#4 Tax Savings

Leasing a car can help you save up to 30% of your vehicle-related expenses from getting taxed. The employee using the car must show that they have been regularly using the vehicle for company-related purposes. They can enjoy tax benefits on the lease amount, fuel costs reimbursement, and the driver’s salary.

#5 Simpler Approval Than Auto Loans

Car loan approvals can take several days. But you can get your car lease approved within 24 hours – all without the need for cumbersome paperwork!

#6 Insurance Coverage

When you lease a car, the instalments you pay towards the lease cover insurance charges. This insurance coverage includes repair and maintenance costs, theft, and accidents. What’s more, the lessee does not need to worry about insurance renewal.

Final Thoughts

Leasing a company car allows your employees to make the best use of their car without having to worry about its maintenance costs, upkeep, insurance, or resale.

Want to give your employees the benefits of company cars? Tata Capital Leasing Solutions help you with the best car leasing schemes that fit your company’s tax bracket, suit your cash flow, and are aligned with your business needs. Visit our website to learn more.

For further information and assistance about our leasing products, drop a mail to get in touch with Leasing experts at Tata Capital to leasing@tatacapital.com and our experts will get back to you.

Read More Blogs
Disclaimer

Leave a Reply

Your email address will not be published. Required fields are marked *

Most Viewed Blogs

Trending Blogs

Calculator

Personal Loan EMI Calculator

Personal Loan EMI Calculator
Home Loan EMI Calculator

Home Loan EMI Calculator
Business Loan EMI Calculator

Business Loan EMI Calculator
Used Car Loan EMI Calculator

Used Car Loan EMI Calculator
Two Wheeler Loan EMI Calculator

Two Wheeler Loan EMI Calculator
Loan Against Securities Calculator

Loan Against Securities Calculator
Loan Against Property Calculator

Loan Against Property Calculator
More Tools
Our Subsidiaries
Our Other Websites

Important Information

Investor Information

Visit us on:,Visit us on: www.tatacapitalmoneyfy.com,www.tatacapitalmoneyfy.com

Our Private Equity Funds

Amalgamated Companies

Top Branches

Most Important Terms & Conditions - Home Loans

Download in your preferred language

Download

Policies, Codes & Other Documents

Most Important Terms & Conditions - Home Loans

Download in your preferred language

Download

Tata Capital Solutions & Services

Uh oh, something went wrong

Please try again later.