Lease Vs Hire Purchase - Which is benefit

P V Gopal (Job) (127 Points)

12 September 2020  

Dear All

 

I would like to know the benefit between lease and hire purchase option and given below the lease plan to buy a car

Given below lease option to buy a car

 

Vehicle on road cost                                                       :               Rs. 1140437

Tenure                                                                               :               24 months

Rent per month including GST @ 29.00%                  :               Rs. 43731

Residual value                                                                 :               Rs. 289688

First Rent                                                                          :               30 days later

 

If I go for hire purchase option :

 

Finance                                                                              :               Rs. 1140437

Interest rate                                                                      :               @ 5.50%

Number of EMI                                                                :               23 months

 

Could you please guide me which becomes beneficial to me. Requesting calculation illustration please.

Please consider depreciation rate 12.50% for first and second years, if needed for calculation.