Leasing will save some precious money. a 3 year lease with decent annual mileage allowance will be a success. The first lease will be for 3 years i guess. Then it will be offered on second lease or lease extension for another 3 years. Thats the way it works in most places. It does a lot of good for the customer. The car is covered for all maintenance requirements, even crashes. The manufacturer has greater control over the resale value of the car(overall lower ownership costs). Less hassle then a loan. Works for every one who does not intend to own a car for 10-20 years, especially companies that often buy this kind of car for its high salaried employees. This is how cars are sold in most developed nations. Its not a second hand car or a rental. You have to own the leased car for the 3 year period. Its going to save quite a bit on your monthly EMI as the car will have some residual value after 3 years. Since you dont bet on the residual value its very low risk and every bit of the expense is visible and predictable. The second lease will have cheaper monthly installments.
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Arun Murali, Senior Software Engineer, Mind Tree Limited
| 02 09 2010 16:39:12 +0000
its a welcome idea for people who offenly want to change their drives . but, it might be a problem in implementing this idea on the base of financial issues. as an individual i love this idea as it seems benificial for both the company and me.
By
varunsangani , Freelancer, Freelancer
| 02 07 2010 11:58:40 +0000
This is great idea.It should be implemented.It will be successful in India no doubt in this.A person can move on different-2 colors and design of cars in his/her life.This might be the reason one should go for it.
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Mohit Trivedi, Game Developer in Emantras
| 02 06 2010 08:38:17 +0000
The answer of this question is unfortunately "YES". There are many many Neros in this poor country who use to play fiddle when country is burning. They dont bother about burning issues like environment, the foreign currency we are spending for purchasing fuel etc.
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Deepak Madhav Padher, Sr. Manager ( Tool Engineering), Bajaj Auto Limited
| 02 06 2010 03:26:31 +0000
Well BMW may be basking in the glory of toppling the Silver Arrow last year as the numero uno for premium car sales in India, however lets not forget things changed overnight as Merc posted the highest sales in January 2010. To be honest lets look at things this way; BMW have probably done their homework and are trying to initiate and target a certain segment in society with this specific leased operation, in fact woudnt be surprised if the likes of Merc S CLass, Audi 6 Series, Porsche follow suit...
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Wayne-Russell Macedo, Procurement & Logistics, Dana Group, Lagos
| 02 06 2010 02:39:57 +0000
Leasing will be a big success for cars because at fractional cost of a new car you can drive around in new models all your life. When you feel enough with one you can give it back and lease another one a new model. There are two types of leases 1)Financial lease and 2) operating lease. In Financial leasing one can depreciate the value of the vehicle and in operating lease you cannot do that. Financial lease is also called lease to own and the other is lease to operate. So there is some tax advantage in the first one.
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Mathew Cherian, Research Associate/Analyst, Western Michigan University
| 02 05 2010 17:52:27 +0000
I did read the newspaper article on this the other day and from what I can gather,it is purely a HIRE PURCHASE offer from BMW.Hire Purchase offer is quiet popular in Commercial vehicle and plant and machinery segment in India where the entire accounting and price fixing is dependent on the original price of the Asset/vehicle and the Depriciation. The problem with Hire Purchase in Super luxury segment like the BMW is that the 1st YEAR DEPRICIATION in this segment is very very high, (why would anybody buy a second hand car for 1 Crore or more?) it can be as high as 40-45% for the first year itself. So anybody hiring a brand new BMW for 1 year might have to shell out 40% of sticker price. I guess anybody who has already paid 40-50% of a BMW`s price would not let it go after a year isnt it?He would pay the remainder and like to own it (resulting in a sale). Whatever it is, I think that such innovative offers are not bad after all as they are only offering wider choice to the Indian consumer.
By
Arunangshu Choudhury, Agent, L.I.C
| 02 05 2010 16:28:39 +0000
Its a good marketing and brand building strategy by BMW - this will basically not only allow buyers to test ride it for a few days - months by the leasing option it also allows the awareness among other users as well. Even though cost of rentals is not going to be conservative it will definetly be competitive compared to other providers in india who charge up to 100k for a BMW.
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Balaji Nagarajan, Sr Manager Marketing Services, Congruent Solutions Private Ltd
| 02 05 2010 11:43:16 +0000
Yes oh yes oh yes....I have been waiting for something like this to happen and at last it has...Off course there are ups and downs to it, but if the person is stuck for cash and at the same time a big BMW fan like me then this is the absolutely perfect way we can get behind the wheel of a Beemer...Its an intriguing way to make people drive BMW's and well this leasing of cars is actually practised in the US...
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Ajay Kuruvila, Business Development Executive, Data Software Research Company
| 02 05 2010 09:00:08 +0000
Absolutely a bold step, and sure others will follow if it will be successful. But on what guarantee they will provide this type of luxury and so costly cars to customers. And in india were every day there would be news of cheating and theft comes will it be so succesful so easily
By
Manoj Kumar, Sr: Manager - QA, ARCHETYPE GROUP, INDIA
| 02 05 2010 08:32:02 +0000
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How come an used car becomes a new one ,whatsoever the company is going to refurnish or reservice with new parts and accesories...Instead of leasing a car why cant they reduce the car price and make it afforadable to the people who are intrested in it.Normally they cant be accessed by more no of people as the rate of the lease also will be higher going through its original cost... In my opinion if they want to tap the customer they had to see other options like manufacturing the car by using large no of local parts as per their standards & make available the car at low cost. As it generates employment directly and indirectly.
By
venkatasreekanth , Customer Support Engineer/Technician, LUCAS INDIAN SERVICE
| 03 27 2010 15:20:46 +0000
It is known the world over that the Hollywood swish set is not always buying brands for the red carpet... It leases brands for the event and promptly returns them back (??)... Leasing brands to the known set of people is a strategic business opportunity that brands in the luxury category attempt all the time. It is not the luxury brands idyllic vehicle but a 'hands on' experience they offer for the aspirational consumer to actually try it because their idol has it!! Its a very viral form of marketing but its on ground. Nowhere is it ever mentioned that George Clooney has the latest 'BEAMER' in his garage which is in fact on lease. Luxury brands are the brands that are in the 'not affordable' category for the MIG, but its an aspiration for them. HIG may posses it or try to by leasing it... In India there would be stringent terms and conditions that would allow this to happen and be successful. I mean you cannot really find the local apparel shop owner going for a lease on a BMW for a day. Understand that this is a style statement that is being made by the swish set and its only there in that category that you can see this happening at all. Knowing our mentality, I wouldnt be surprised if one man leases a BMW and never returns it back!!... "IT HAPPENS ONLY IN INDIA".. I do not mean any ill here but this is not beyond us at all...
By
Makrand Bhave, Marketing & MICE, WIZCRAFT International
| 02 07 2010 02:08:51 +0000
This is in fact just a strategic business initiative from BMW India!I have handled the leasing business and i know the Pros and cons. By starting leasing to Individuals they(BMW) only want to enhance their brand image and add business volumes.As i see it they may form a new subsidiary for leasing operations and thereby be able to gain competitive edge through simplified operations,/the leasing rates for the brand are going to be astronomical.They may get more volumes by displacing other brands like /mercedes,VW,Audi,Porsche etc. Let us discuss and example of an individual whose vehucle (say Merc) had become old and for a few months he leases a BEEMER and likes it.He may end up buying a BMW as his next car. With the higher GDP and higher disposable income levels and increasing consumerism in the country will in the longer run enhance the use of such premium brands.We cannot see this from only point of view of an individual not able to afford a BMW and intead leasing it.It's a sheer business decision.If the BMW comes up with a car under INR 10 Lakh price tag then only we can support the arguemnt. The customers for the big brands will remain premium customers!! Qiute a few will graduate to drive a BMW but through upgrading thier income levels only!!!
By
SACHIN KORDE, Business Head, KAMAL AUTO
| 02 05 2010 09:45:41 +0000
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