Buy Vs Lease Vs Loan


#1

For those who have asked me on the difference, I am listing down the comparison for the larger audience in the forum. Feel free to question me on the numbers. Add your comments if I missed any.


#2


#3

Advantages of Lease

  • Technological advancement in the coming years.
  • In today’s vehicle lot of features are missing (Bluetooth, ABS, Centre Stand, Side Foot Pedal, Ambient Light Sensor, Standalone GPS, USB Socket, Colour options, Pass Light etc.etc.)
  • Advancement of Battery
  • Many big players will come to market, consumers will have plenty of options.
  • Resale value is not guaranteed in Buy/Loan options.

Disclaimer: above are all my own views and I am not an employee of Ather nor Autovert.


#4

Hey Rajesh,
Nice compilation… it has surely evolved with more info getting added from what it started from(with all due respects/appreciation to couple of such tables posted earlier on the parent thread).
My 2 cents to this table, please check the Total ownership Cost numbers for the Own & Lease options… something seems to be amiss.

i too had decided on the lease option more or less based on the same lines and so i do agree. i was trying to compile a similar table and post but you raced ahead… well you are on your A450, while i still am on my ICE Vehicle and awaiting MY A450 :slight_smile:


#5

Hey Ganesh, thanks for pointing it out. You are right. Calculations were wrong. I have made corrections in the first post itself as the edit was possible.

Agree with you, I got inspired by @kumaranchal and various newspaper articles. Due credit goes to them.


#6

Hi Rajesh,
I didn’t get that in ownership column which interest amount (what basis) that you have added…


#7

Very well summarised Rajesh. For me as well, primary reason to go for lease are these exact advantage points. EV tech and market is growing by the day and as I see within 3 years Ather as well as others manufacturers will have much more advanced EVs on offer. Lease gives an easy flexibility to switch to a better option at the same time being more economical in a longer run specially for EVs.

For me its simple. Instead of buying upfront and owning it for say 6 years with an overall ownership cost more than 200K (including battery replacement, insurance, atherone, interest lost etc), I will rather go for 3+3 year lease which will cost me 180K (90k+90K). In 3 years I will switch to the latest model and hence will be driving fully performing vehicle covered under warranty for entire 6 year duration.

I know its a bad analogy but its like you buy a 120K Iphone XS max. After 4 years even though it works okayish, you will always feel like using an obsolete piece of junk among all the phones even much cheaper ones with much more advanced tech and design.


#8

Leasing is good option and ur true we can upgrade to advance vehicle in future. But the person like me don’t like to pay monthly instalment I think buying the ather for full cash is best option… if some people planning to buy ather in loan then they can choose loan over lease.
As per my calculation in details.
450 Total cost - 128,120 ( on road + 5 year 3rd party insurance ) vs
activa 125 - 76400 ( on road + insurance

For 2 year
Part A
Details 450 l H/A 125
------------------------------------------l-------------------
Vehicle cost : 128,120 l 76,400
After 2 years value :- 50,000 l 45,000

Sub Total : 78,120 l 31,400
Insurance : 1,000 l 1,000
Ather One/service : 9,100(aprox) 6,600(min)
Brake shoe : - l 600
Air filter/emisi… : - l 400

Gran total : 88,220 l 40,000

Let’s come milage part
Consumption : 3-4 units l 1 litre
Electricity/petrol : 65 kms l 50 kms
Cost(7rs per unit) : 28 rs (max)l 70rs ( min)
---------------------------------------------------------------for 2 yrs 30000 kms ( as per my last bike records)
Part B
Amount will be refunded for ather one plan, but I don’t how much so I will take 7000 as refund & also u can have free of charging out side.

Ather: 30000 Ă· 65 = 461.53 Ă— 28 = 12923
Act : 30000 Ă· 45 = 666.66 Ă— 70 = 46,666

So cost of 2 vehicles after 2 year
Part A + Part B = Total
ather : 88,220 + 5,923 = 94,143
Act 125 : 40,000 + 46,666 = 86,666

Only about 7.5k of difference what i am paying. I dont acre bcz
Towards saving of this plant by carbon, petrol & global warming etc & also to support ather as the Indian company…


#9

Your argument is very well summarized and agree in comparison with ICE vehicle.

As I understand, Autovert is also planning to come up with lump sum payment mode instead of monthly for installments. Details are awaited.


#10

Ather cannot be compared with activa at all… highly unfair. The build quality and the components are no match. I find aprilia sr125 is the close match here. Below is the comparison of loan, lease and a petrol variant !


#11

Hi Rajesh
Its a Great comparison Chart.

Just I am getting more confused now as My vehicle is due for March delivery And have to decide soon :frowning:

How is it possible that cost of ownership when bought in full cash
is higher for 3 years Compared to the owning on Loan for 3 years?

Or did I not understand the chart properly?

Ideally full cash cost should be the least

Else how do the leasing company and the lending banks make profit?


#12

Hi Avanish, I have messaged you directly, please check.


#13

Primarily it depends on how long you are planning to own/keep your Ather. If you are looking at 3 year span then the difference between lease and full cash will not be very high (lease still marginally better) but if you are looking at around 6 year time span then lease turns out to be a much better option (because of battery replacement cost around 4th or 5th year as well as warranty, option to a better version of model etc).

IMO full cash makes more sense only if you plan to use the same scooter for 6-10 years because then your one time expenses will already be taken care of and you will need to only pay for insurance and Atherone and some loss on interest on original extra payment. But note that you will be driving your Ather without warranty. Also who knows what happens in 6-7 years, maybe entire tech is changed with better, more efficient and cheaper models in market.


#14

Some more readup on the same topic (though its for Electric cars but holds equally good for bikes as well):




#15

@rajeshkav, can you let us know what is your lease plan like…
Your Down Payment & Monthly rent inc. tax.

I would like to hear from other lessee who opted for lease.


#16


#17

Ive seen the comparison of buy vs lease and in my mind the lease is a no brainier for a very simple reason. In 3 years, the market for electric two wheelers is going to be vastly different from now. So, I do not know what the feasibility of selling the Ather will be and whether it will have any real resale value (currently a 3 year electric scooter hardly fetches anything). So, the lease option removes a very big headache from me, to take the scooter from my hands and that is a very big plus. The fact that the financials are comparable is just the icing on the cake


#18

Hi, I just want to confirm regarding this 75k- adjusted resale value. Will we get back the 75 k from Ather.


#19


As per Autovert Leasing policy sited in Ather Website


#20

If you see the final cost after 3 years it’s 128559/-…which is actually a very high running cost for a vehicle you use only inside city…so when I spend on Ather I look it as a normal use city vehicle for longer use period than 3 years…the comparison was to just find which is the cost friendly option based on the technology risk I am ready to bear with…even if I have to sell it after 3 years I suppose someone who has a use case of just commute maybe ok to spend 50k on a electric scooter which works ok compared to available options in market then…not sure my thought process makes sense to everyone though…