Reviews Regarding Vehicle Leasing

weels · January 26, 2011

Hi,

Thank you so much for the valuable information you guys passed me on my first thread.

After being reading your ideas and some other threads, blended with my friends and elders ideas, I was finally thought of going for a Suzuki Alto (Indian). Yes, I hope I can handle Manual Transmission.

But now I m lacking information on some other aspect, which is financing my prospective.

Any Advice guys? A Lease or vehicle loan? Pros and cons of each?

and what are the good organizations which provide cool solutions?

BR

Udari

The Don · January 26, 2011

Udari,

Which financing option is better is dependent on the interest rate you will be offered finance at, and mind you, you really need to be careful here. Especially when it comes to finance companies, the interest rates and the terms under which the loan is provided isn't always clear.

As a matter of course, always try to utilise a loan than a lease because you are more likely to be offered a better interest rate. Check with a few banks (I suggest at least one state bank, a large private bank like Commercial, Seylan, Sampath and a smaller player like PABC, DFCC Vardhana etc)

Then go to a few finance companies and get a baseline figure as to what they offer. A while back the company which offered the most reasonable terms is People's leasing, but that might have changed. Again do the same as above but ask for a clear breakdown of costs.

Then make your decision !

Sylvi · January 27, 2011

Hi,

Thank you so much for the valuable information you guys passed me on my first thread.

After being reading your ideas and some other threads, blended with my friends and elders ideas, I was finally thought of going for a Suzuki Alto (Indian). Yes, I hope I can handle Manual Transmission.

But now I m lacking information on some other aspect, which is financing my prospective.

Any Advice guys? A Lease or vehicle loan? Pros and cons of each?

and what are the good organizations which provide cool solutions?

BR

Udari

Udari

You have selected a new car or used one Suzuki Alto (Indian). Manual Transmission is good for start.

.

(LEASE/BANK LOAN)

It is all decided for your initial payment and your Income.There was few advertisements on the papers by HSBC that will give you some information about their terms.As far as I know the WAT is paid divided in installments for entire lease period. Bank loan is good then you pay with WAT full cost of the Vehicle will be in your name Lease means the lending institution will be the absolute owner of the vehicle and you will be the Lessee.The interest of lease or loan I think is same.Payment of WAT you have to get advise from the bank.

I have had experience of leasing from LOLC,DFCC for Vehicles and Machinery. At the moment I am about sign a lease agreement for a vehicle with Commercial Bank of Ceylon PLC. Only with one installment for three years.

Some Finance companies wants good guarantor who is a government employee or a high income tax payer some want two guarantors some times age limit is also a barrier. All guarantors should have clean record because lending institutions check with Central bank circular to find guarantor had signed as a guarantee early and the lessee had failed to settle the installments.Within three installments not settled by lessee guarantors name will appear in the central bank circular then he is rejected as a guarantor.

There are one or two private Finance companies they will want immovable property as a guarantee and they will have open transfer papers signed if you fail to settle they will transfer the property in the company's name I hope you will not go for them.

Sylvi Wijesinghe.

Reckless · February 13, 2011

hi every body this is my first post here. :rolleyes: since this is a thread regarding leasing i decided to post my question here.

I have seen advertisements in some news papers, saying that some people/companies are providing leasing facilities for unregistered or used vehicles without the need of important documents such as guarantors, income reports, valuation reports etc. they will arrange the cash in less than one hour and will do home visits if required. Their interest rate is same or lower than most of the popular banks and finance companies. They say that they only need the registration book of the vehicle as a guarantee.

Is there any risk involved in this? Is this some kind of a scam? Your view and advice is highly appreciated.

jdnet · February 13, 2011

If it sounds too good to be real, it probably is.

VVTi · February 13, 2011

hi every body this is my first post here. since this is a thread regarding leasing i decided to post my question here.

I have seen advertisements in some news papers, saying that some people/companies are providing leasing facilities for unregistered or used vehicles without the need of important documents such as guarantors, income reports, valuation reports etc. they will arrange the cash in less than one hour and will do home visits if required. Their interest rate is same or lower than most of the popular banks and finance companies. They say that they only need the registration book of the vehicle as a guarantee.

Is there any risk involved in this? Is this some kind of a scam? Your view and advice is highly appreciated.

Its a scam. Just go to the reputed places. Even if the rates are high or the hassle is more.

What they do is they string you along with various charges and do not deliver the goods in the end.

AbeysinghE · February 13, 2011

Hi,

Thank you so much for the valuable information you guys passed me on my first thread.

After being reading your ideas and some other threads, blended with my friends and elders ideas, I was finally thought of going for a Suzuki Alto (Indian). Yes, I hope I can handle Manual Transmission.

But now I m lacking information on some other aspect, which is financing my prospective.

Any Advice guys? A Lease or vehicle loan? Pros and cons of each?

and what are the good organizations which provide cool solutions?

BR

Udari

It depend on certain factors.

01.Is your vehicle Brand new, Reconditioned or registered second hand???

02.What is the amount you can bear???

03.Year of manufacture?

04.No of years you are willing pay the lease or the loan?

ok let me analyse this,

01.If your vehicle is brand new or reconditioned unregistered, most probably you can obtain a full lease for the vehicle value or a full loan for the vehicle value...but when it's bit old and registered some financial institutions are not providing lease or loans..and some may grant a percentage accordingly..

02.The more you bear the car value..it's better to go for a lease..but if you are willing to obtain the full value..i think it's better to go for a loan..coz..if you obtain a lease even if there is a day you are capable of paying them and settle most probably there won't be any interest reduction.. but a loan you can reduce the capital when ever you have some moeny.

03.If the year of manufacture is very recent it's less headache for you to go for a loan.

04.Maximum loan period or lease period for vehicles is 5 years in most banks and financial institutions...

having said that..i would say that it's more viable for you to go for a loan instead of a lease, though obtaining lease is bit easier than a loan..but you will get the advantage of reducing the interest by minimizing the capital when ever you can...and the normal interest rate for the loans are relatively low than the lease...

decision is up to you...

AbeysinghE · February 13, 2011

Its a scam. Just go to the reputed places. Even if the rates are high or the hassle is more.

What they do is they string you along with various charges and do not deliver the goods in the end.

sure mate..better to go for the reputed institutions

jdnet · February 13, 2011

Its a scam. Just go to the reputed places. Even if the rates are high or the hassle is more.

What they do is they string you along with various charges and do not deliver the goods in the end.

I know a guy who tried getting a loan through one of those scams on the paper. He had to pay a five thousand rupee deposit. Never got the money though.....

Reckless · February 13, 2011

I know a guy who tried getting a loan through one of those scams on the paper. He had to pay a five thousand rupee deposit. Never got the money though.....

Thanks for your quick replies guys.

Some of these companies state that they are government approved. I was wondering what if they give me the money without any deposits and documents like they promised and take away the registration book. What risk is there after they take the registration book?

VVTi · February 13, 2011

You are obviously hell bent on going ahead with this. So, stop wasting time asking the same question, call one of these guys up, do as they tell you, give them the deposit and then kick yourself in the nuts later when the inevitable happens.

These scams are there for morons like you to fall in to.

Go ahead, be Penny Wise, Pound Foolish.

BTW, Sakvithi was GOSL approved too

Reckless · February 13, 2011

You are obviously hell bent on going ahead with this. So, stop wasting time asking the same question, call one of these guys up, do as they tell you, give them the deposit and then kick yourself in the nuts later when the inevitable happens.

These scams are there for morons like you to fall in to.

Go ahead, be Penny Wise, Pound Foolish.

BTW, Sakvithi was GOSL approved too

I already called them, they said no deposit required. I was just asking what can happen after giving away the registration book? what can one do with another persons car registration book? :unsure:

Watchman · February 13, 2011

You are obviously hell bent on going ahead with this. So, stop wasting time asking the same question, call one of these guys up, do as they tell you, give them the deposit and then kick yourself in the nuts later when the inevitable happens.

These scams are there for morons like you to fall in to.

Go ahead, be Penny Wise, Pound Foolish.

BTW, Sakvithi was GOSL approved too

+1

Some people just dont get it.

What can they do with the papers for your car you ask? off the top of my head:

1- sell it to someone by forging your signature; or even use it as a surety and get another bank loan and default on it and that bank will send their goons to collect collateral.

2- use the book on a cut-bud

VVTi · February 13, 2011

+1

Some people just dont get it.

What can they do with the papers for your car you ask? off the top of my head:

1- sell it to someone by forging your signature; or even use it as a surety and get another bank loan and default on it and that bank will send their goons to collect collateral.

2- use the book on a cut-bud

Machang, experience is the best teacher.

No point in painting a picture... let them taste it first hand.

Illan Prippu kanna hadanne. Anthimata car ekath ne, sallith ne, or worse still..

Reckless · February 13, 2011

What can they do with the papers for your car you ask? off the top of my head:

1- sell it to someone by forging your signature; or even use it as a surety and get another bank loan and default on it and that bank will send their goons to collect collateral.

2- use the book on a cut-bud

Thanks thats what I wanted to know.. Didnt know what risks were involved thats why I asked from the experts.

Thanks jdnet, watchman and specially vvti for your soooo kind advice, appreciate it.

think you guys have saved some one from falling in to this crap. :alc:

CruiseControl · February 13, 2011

I am also willing to have a loan or a lease and found some information related to interest rates and conditions.

Most of the commercial banks in SL offers personal loans at 14% fixed interest rate.(They charge a loan processing fee of 5000 - 7500 LKR)

Heard that it is very hard to get a personal load from state banks. (interest rates may vary). Didn't try.

St*nd*rd Ch*rter*d bank offers 11% interest rate but it is fixed only for a year. And they charge nearly 2% of insurance amount(what the hell is this?). And the loan processing fee of 5000 as well.

I am afraid of non reputed financial companies (specially non-banks). They have soo many hidden charges and they will never state about them until you agreed to sign. And I am not risking my hard earned money/vehicle.

jdnet · February 13, 2011

Machan just go for a regular finance. Finance companies are generally flexible (atleast the smaller ones are). As long as you have proof for a source of income, banks statements, atleast some assets you should be fine. /if you own a business then it's even easier to get it done. Guarantors and stuff don't mean much. They can be bought.

Edited February 13, 2011 by jdnet

Reckless · February 13, 2011

Machan just go for a regular finance. Finance companies are generally flexible (atleast the smaller ones are). As long as you have proof for a source of income, banks statements, atleast some assets you should be fine. /if you own a business then it's even easier to get it done. Guarantors and stuff don't mean much. They can be bought.

Yeah machan thats what Im going to do. I would be better off paying a reputed bank or finance company the extra amount, than taking the risk of loosing it all by going to a non-reputed company.

The best deal i got for a loan is from H*B. They have a vehicle loan 12% interest per anum. They dont require any gurantors, only showing 3 months pay slips is enough. The only con is that for a registered vehicle the first registration should be with in the last 5 years. and for my salary and budget that leaves only maruti or alto.

Edited February 13, 2011 by Reckless

CruiseControl · February 13, 2011

Yeah machan thats what Im going to do. I would be better off paying a reputed bank or finance company the extra amount, than taking the risk of loosing it all by going to a non-reputed company.

The best deal i got for a loan is from H*B. They have a vehicle loan 12% interest per anum. They dont require any gurantors, only showing 3 months pay slips is enough. The only con is that for a registered vehicle the first registration should be with in the last 5 years.

Is it at a fixed interest rate? It seems a good offer.

Is there anything to do with the registration book?

Reckless · February 13, 2011

Is it at a fixed interest rate? It seems a good offer.

Is there anything to do with the registration book?

Yeah machan its fixed. repayment period is upto 7 years. They take the registration book as a guarantee.

There are some other requirements such as the age and you have to be a confirmed executive with 5 years experience and 1 year experience in current work place, and you have to have a minimum salary of 30,000/-

Like I said the only con for me is the 5year barrier for registered vehicles

TURBOMAN · February 13, 2011

Machan,

Go for a loan if you can,and try to pay it in REDUCING method.Then you can get a good reduction in your monthly installment by bulk payments.

Thats what i did and so far so good.

Good luck for new vehicle owners.

May your dreams today become a reality tomorrow.

TURBOMAN.........

hakjay · February 13, 2011

Is there any benifit in income tax when you lease a car compared to buying a car on loan. From what I know if you lease a car the IRD won't bother you since the car is under finance company name. Don't know what happens for loan..

The Don · February 13, 2011

Is there any benifit in income tax when you lease a car compared to buying a car on loan. From what I know if you lease a car the IRD won't bother you since the car is under finance company name. Don't know what happens for loan..

Makes no difference if you pay tax via PAYE, as in you are employed and your employer collects the tax on behalf of the government. Could make a difference if you are self employed, run a business and pay no tax Tax avoidance is a crime

CruiseControl · February 13, 2011

Yeah machan its fixed. repayment period is upto 7 years. They take the registration book as a guarantee.

There are some other requirements such as the age and you have to be a confirmed executive with 5 years experience and 1 year experience in current work place, and you have to have a minimum salary of 30,000/-

Like I said the only con for me is the 5year barrier for registered vehicles

Yes, I just called my friend and the monthly installment for 1 mil would be Rs. 22,244.00 for 5 years.

The problem for me is the requirement of 5 year experience.

Seems I have to go for Commercial bank at 14% then. :angry:

Reckless · February 13, 2011

Yes, I just called my friend and the monthly installment for 1 mil would be Rs. 22,244.00 for 5 years.

The problem for me is the requirement of 5 year experience.

Seems I have to go for Commercial bank at 14% then.

Machan what are the requirements for a C*M bank car loan? do they require guarantors and other documents? Is there a registration year limit like the H*B loan?

Edited February 13, 2011 by Reckless