Buy Vs Lease Vs Loan

If you are unsure about committing the full payment, then lease it. You can always buy it out at the end of the lease if you wish.

2 Likes

I bought it because I probably won’t change it for 4-5 years. So if you want to keep it for a long term, buy it. Or else lease it.

With the recent subsidy increase, your buyout amount after lease period became cheaper by 5k.

In my calculation, you need to keep the vehicle for 5 years. Anything less, better lease it.

I leased it because I was not able to afford the full amount to buy. I will definitely buy after my lease period.

In fact I want check if Autovert has any yearly, half yearly and quarterly plans. so that I can finish payment soon.

1 Like

I always hold the vehicle for more than 5 years. My only worry is the battery and its replacement cost.

1 Like

Current market price of 2.7 kwh battery is around 34k including import duty.

Though the lithium ion battery prices are dropping faster, let’s assume conservatively at 10% Year on Year. After 5 years, it should be 20k.

Again this is assuming USD at 70 rupees.

Govt may decrease the import duty as well.

Also, you can expect buyback of old battery for 5k. Currently lead acid batteries are bought back at 1/5th market rate.

Regardless of many factors we can safely assume it will be less than 25k.

So, 25k for next 5 years is cheaper than Ather One subscription :slight_smile:

5 Likes

Curious question to @Ather.Team or @Shreyas?

Does Ather import lithium ion cells and manufacture battery here or battery itself getting imported.

I remember reading the former has import duty cuts.

1 Like

Cells are imported. However battery pack is assembled here in Bengaluru.

7 Likes

It’s cheaper than the service plan XD

1 Like

As per the information.

Processing fee for leasing is around INR 1850 and there seem to be foreclosure charges as well at the end of the lease.

The following is also been indicated by the leasing partner: :thinking:

Lease/Rental/Subscription/loan/insurance pricing/plans on the website are subject to change without notice.

We reserve the right at any time to modify or discontinue the Service (or any part or content thereof) without notice at any time.

We shall not be liable to you or to any third-party for any modification, price change, suspension or discontinuance of the Service.

Does it makes sense to lease.

What they mean is they can change the price (lease, due, insurance, subscription plan) any time and that will be applicable for any new subscription.

For people who already committed to the lease, it will not change until the end of lease period.

1 Like

Agreed, this is a simple formula but purely from a monetary point of view.

However, there are other intangible benefits to leasing like peace of mind and not having to worry about resale / depreciation of the vehicle. As per my calculations, the cost differential between lease vs buy options is reasonable and justified for having the flexibility to decide what to do with the vehicle 3 yrs down the road.

4 Likes

26k differential at 70k down payment right?
I guess one can have a better resale than 26k😅

Not sure I understand the 26k differential.

The lease also includes the Ather One package for all 3 years. Insurance is also included. So, that brings down the differential.

If you buy upfront:
Vehicle - 123k
Monthly payments - 0
Insurance - 10k for next 2 years
Ather One plan - 20k for next 2 years
Total Cost (if you retain at the end of 3 yrs) - 153k
Total Cost (if you sell at the end of 3 yrs) - ~90k - 100k (assuming you can sell at 50k - 60k)

If you lease:
Deposit - 75k
Monthly payments - 90k (for 2.5k p.m. for 3 yrs)
Insurance - included
Ather One plan - included
Buyout after lease ends - 5k
Total Cost (if you retain at the end of 3 yrs) - 170k
Total Cost (if you return at the end of 3 yrs) - 90k

In summary,
if you are retaining in effect you pay about 15k extra for lease over 3 years, but you get the flexibility and peace of mind.

if you are selling, its more or less cost neutral without having to worry about resale price and I have not even considered the opportunity cost of the 50k that you are not paying up front which will make it even better.

7 Likes

It’s very clear explanation. I got clarity between lease and full payment. Can you please loan calculation also

Insurance is 9k for 5 years😅
I paid 1.16L for the vehicle+ 9k for insurance (5+5 years)+2.8k for to make my service plan to Ather one. This makes the vehicle cost inclusive of insurance to around 1.28.
If I take the service plan(considering autovert also gives the same plan for now, for lease) for the next two years it makes the vehicle cost 1.4L.
Well I do agree the peace of mind to an extent and if Ather does release a newer and more powerful model by then lease does seem like the better option.
P.S. I thought the insurance wasn’t included in the lease. Which makes for the difference, my bad.:sweat_smile:

Ather’s website -> pricing; if you go to lease details, it says Ather One is included. I’m not sure if this has changed recently. Would be good to get clarification from Autovert as to what is bundled with the lease.

Applicable for all pre orders before November 2018

1 Like

The website doesn’t have a conditions apply or any fineprint.

@Shreyas can you please clarify and have the website updated accordingly, as it could be misleading?

1 Like

You are right. I just clarified with the Autovert team. It seems only Ather Connect that is included in the lease unless you are among the pre-orders.

More details at the link here: https://lease.autovert.in/faq

This should be called out clearly in the website as it can shift the equation of lease vs buy.

4 Likes