Avis Operating Lease and Red Carpet Lease plan

The concept of acquiring vehicles on lease purchase basis may still be new to India, but it has been around for quite a while now. The successful business model has benefited numerous corporate houses and individuals across the world by providing a hassle free vehicle ownership experience. 

Avis is one such global company that has been providing operating lease facilities for vehicle acquisition, maintenance and disposal in India for the past 12 years and has watched the corporate sector experience its boom. The company sees tremendous potential for vehicle leasing in the Indian market and is wasting no time in trying to capture as much of a market share as possible with the launch of the Red Carpet Lease plan.

Operating lease allows individuals and companies to lease vehicles from Avis for one to five years. This is of major relevance in the corporate sector as companies save a lot of money by leasing cars for use rather than having to take the expensive route of buying vehicles. 

Here is how leasing is beneficial for customers: 

• No down payment

• Tax benefits

• No extra maintenance costs

• Hassle free car disposal

Sunil Gupta, CEO, Avis India, said, “The concept of operating lease has been growing in India and major MNC and Indian corporate houses are moving towards taking cars on operating lease instead of buying. Corporate houses purchase around 10 per cent of the total cars sold in the country and out of that only 10 per cent of the cars are leased. So far only a fraction of the leasing potential in India has been exploited and the potential for growth is huge. Avis India plans to invest Rs 7 billion over the next 3-4 years in placing 7000 vehicles on operating lease.”

In India, Avis Lease is providing a host of leasing options like Premium Lease, Fleet Consultancy, Fleet Management and their flagship product, the Red Carpet Lease. 

• Premium Lease provides customers with services like vehicle acquisition, maintenance, acquisition, insurance and roadside assistance as standard. Customers also have the option of availing added services to the plan. 

• Fleet Constancy services from Avis advices customers on vehicle fleet policies, acquiring the appropriate fleet mix of vehicles and vehicle fleet disposal. 

• The Avis Fleet management services is a package for corporate clients with their personal fleet of vehicles looking for a firm that can provide a complete fleet care package including professional maintenance, insurance and road side assistance services from experts. 

• The Avis Red Carpet Lease plan offers everything from fleet advisory services, vehicle acquisition, insurance, repairs and maintenance, stay new plan, accident management, vehicle up gradation, 24x7 roadside assistance, replacement vehicle, field technician support and vehicle disposal services. 

The Red Carpet Lease plan is Avis’ flagship service as Avis will take care of all aspects of the vehicle’s maintenance, ownership experience, they will periodically restore the vehicle’s condition to showroom state. In case of an accident, Avis will deal with all the hassles to get the vehicle fixed. Avis will also replace the vehicle with a new one when and if the customer chooses to go in for a different vehicle.  

Here is a look at how operating lease for vehicle acquisition is beneficial to customers. 

As indicated by the table below, while going in for a Maruti Suzuki Swift VDi under operating lease, the customer ends up saving Rs 2,44,100 over a span of three years. After the three-year lease tenure is over the customer can upgrade to another vehicle without any problems. Purchasing a vehicle with finance is a lot more expensive and will require the owner to take care of all financial and maintenance aspects of the vehicle. Then there is the issue of selling the vehicle at the best value. 

Comparison between aquisition of a Maruti Suzuki Swift VDi via operating lease and purchase of the vehicle via bank finance

Operating lease is even more beneficial for customers going in for the executive range of vehicles. As indicated by the table below, acquiring a Mercedes-Benz C 250 CDI through operating lease will save the customer Rs 14,28,973 over a period of four years compared to acquiring the same vehicle through bank finance. 

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Comparison between aquisition of a Mercedes-Benz C-Class 250 CDI  via operating lease and purchase of the vehicle via bank finance

No matter what segment of vehicle customers look at, operating lease is always a much better means of acquiring and maintaining vehicles. And when it comes to fleet acquisition by corporate houses the level of savings in comparison to purchasing vehicles is staggering. Added to this, the fact that employees to do not have to spend time maintaining their vehicles increases their productivity. And at the end of the lease tenure the company can upgrade the vehicle of an employee. Also, if an employee would like to buy the vehicle for personal use during or after the lease tenure is over the process is simple and economical.