Car Loan vs Car Lease in India | Which One Saves More Money

Thinking of leasing a car because the monthly cost looks lower? In India, that can be a costly mistake.

Car loan vs car lease depends on who is buying. If you are an individual buyer, a loan usually makes more sense because Indian cars have strong resale value and you actually own the car. With leasing, you pay rent, GST and cess, but the car is not yours after the lease ends.

Corporate car lease can be beneficial if your company deducts it from pre-tax salary, helping you save income tax. But the hidden problem is job change. Transfer, buyout and foreclosure penalties can make it risky.

Read the lease terms before you decide.

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