Is Your Company Car Lease Worth It? HUGE Tax Benefits! 

Use the Google Sheet below, make a copy and tinker around. docs.google.com/spreadsheets/d/15YTOE5RszRvla0fANeRjflR95qcnYfku/edit?usp=sharing&ouid=111698565301221074236&rtpof=true&sd=true

Also, if you change job and your new company has a car leasing policy with the same leasing company then you can continue your lease with the new company as well. Just FYI

Thanks Pranay and Abhishek for sharing this on request. Super helpful! I was also doing my research in parallel. Wanted to add a few pointers: 1. The amount which has to be paid when lease ends (residual value) - gets decided at the time of agreement. One should choose lowest residual amount to get maximum tax benefit in monthly EMI. 2. Higher the tenure of lease, higher would be tax benefit 3. Sell this car in second hand market with 40-50% depreciation over 3 years and get new one on another lease…. And keep playing with new machines every 3 years 😅 4. There is no down payment at all. That downpayment (which you had to pay while buying on bank loan) can be invested and can also grow over 3 years. 5. Only challenge I see here is when you change your employer - it can have an impact, especially if you foreclose within 12-18 months.

You're nailing the content Pranay! SAP offers this benefit if you know someone in your circle please try to bring them in. I also heard they are closing this benefit soon and asked them to take an EV and that's the closure of the leasing benefit. They sell this at a higher price after 3 years and squeeze more value from this. I was offered a 3 year old creta for 10L

Only one comment 30% tax is not correct. Everyone has to pay surcharge and cess. So munimum marginal tax is 32.5% and more likely 39.5%

Hey Pranay... Great discussion! Abhishek is my brother so if I have any questions I will directly ask him 😅. But like any other sister, I would like to add one point that he missed 😂 - If you want to sell your leased car to any of the standard companies like CARS24 etc., the value reduces considerably if you are the 2nd owner even if the 1st owner is a leasing company.

My friend's company has something very different than this and very simple, his company registers car on the company's name and takes interest free, tax free EMIs for a duration of 5years so what ever is the cost it gets simply divided in 60 months with no interest and tax. The only con is that it gets double tax, but he saved that also by registering it as BH series so regular tax, and at end of 5 years he will get the car registered to his name at cost of just the transfer fees.

The car can be transferred to other leasing company as well

Interesting! Wonder what the savings are for EVs

Super helpful!

My company car scheme has no interest, however the car gets registered in my company name.. After 48 month paying off installments, name transfer will be done..

One thing Abhishek forgot to mention is if we go with EV, you cannot claim for fuel bills up to 3 lakhs which is for maintenance

Thanks for this video

Btw, a contracting model exists where the car can be in your name. You can try to optimize the job movement - these leasing companies can include in their contract that they will be okay to transfer this lease to new employer, ofcourse you need to be able to convince your new employer for this. But atleast you have an option to work for, over foreclosure. Also, if you are sitting on cash, negotiate the lease period to as low a possible, i do not think they go below 2 years, but heck atleast you can move on from the company, if you want to. And even so, if you do decide to move on, the lease can transfer to you as an individual, and the lease rental becomes EMI for you, so the tax benefit goes away. But you still have your car.

What is the additional payout?

Bro my amex card got approved . Applied with your link last week 😂

hi pranay , content is really relatable and helpful , from cc to mfs and cars .....which software do you use to record all the videos and meets

Thanks Pranay, Would like your opinion on Honda Elevate ZX cvt! I am on the verge of buying it and getting it on decent price - 1785000 ( on road without exchange bonus) should I go for it? Or look some other option Please reply your say matters alot! Thanks

If I live in Uttar Pradesh and I am buying a Rajasthan Number car. So to transfer the ownership do I need to have an address location in Rajasthan. I am ok with the car having the Rajasthan Number Plate.

If you move companies then the lease can become a private lease and you can still continue with the car but you lose the tax benefits. If the company you’re moving to has a tieup then they can take over the lease and you can continue with the benefits. Done all this.

Great to hear this from 2 experts. This literally changes the perception of car as a depreciation assest. But reaching at that place to earn perks has to be mapped. Well I am inspired by your discussion ❤.

Well, this route will encourage you to spend more on cars. So, you will not save much.

Hi Pranay, Leasing a car on Company name adds to Double the Road tax to be paid. Which will reduce the gains.

GST Input credit by NBFC to offset high interest rate has not been factored.

Can you make a similar one for sme owners who are in high tax bracket cause there is depreciation at play

Leasing makes sense for Corporate Workers. And leasing an EV is even better.

Is there way to claim (ITC) the GST when going with the Lease? I know it not possible for Car. Just Curious

Great! Just what i was looking for 😅 in our research to whether buy the car or lease it... Thanks! Pranay 😊

My company has a "company purchase policy" how is that different? They claim it's better than leasing... My understanding is no down-payment, 0% emi for 5 years... 20% depreciation each year... If you sell at 5 years to third party no tax liability.. Thoughts? Car on company name first 5 years... If you end the contract within 4 years you pay 10% interest on the car amount on a monthly reducing basis

For Salaried employees how will lease benefit that should have been explained with 20 lacs salary bracket

Pranay bro if Abhishek bro is opting for foreclosure will it not going to affect his civil score 🌹❤️

Thanks for sharing

Finally!!!!!!

Hi Pranay. This was a useful video. I actually just bought a Tata Curvv EV using my company lease. I would like to add 2 cents. If you are shifting companies and the new company also have a tie up with the leasing company (in my case it's Orix) then you can shift the lease or pay the pre closure penalty (2%). Also the car is from day 1 on your name in my company's agreement, only Hypothecated to Orix. However wanted to check with Abhishek if he has any idea if we can get reimbursement for the EV meter we get installed and instead of Fuel bills we can submit electricity bills used to charge the car. Regards

1 question: on talking to a dealership about pros and cons they informed me that leasing advantage is lost because leasing company forces you to take specified insurance policy which is costlier because of it being on a leased car. Is that true?

Hi pranay, I'm planning to purchase an I10 nios Magna automatic... How much maximum discount can I expect after negotiation... I'm asking for 90k to 1lakh on ex showroom but no success yet...helpful if you can give me a ballpark

Pranay yaar, great yaar.

Hey Pranay,Awesome videos man! One topic that you may consider is tax saving for folks on the salary side of 50+LPA.May be emphsizing on saving money via donations.

Dealers dont offer much discounts if taken on lease. Also insurance is done by leasing company itself.

Paa