1. What is operating lease in case of vehicles?
An operating lease is a long term usage agreement wherein leasing company who is the legal owner of vehicle passes its right of use to the customer, and customer enjoys use of vehicle as its owner for the duration of leasing contract. Under operating lease, after the expiry of lease period vehicle is returned back to the leasing company. Leasing company is called lessor and customer is called the lessee.
2. How does it work?
The lessor buys the vehicle as per the specifications provided by the customer or lessee and delivers the same to the lessee for the pre-decided tenure (generally 3 to 5 years, not exceeding 5 years in any case) on lease along with fleet management services like comprehensive maintenance, insurance and accident management, replacement vehicles, pick up and drop, & 24X7 road side assistance.
The Lessor charges a fixed lease rental which can be paid monthly, quarterly, half yearly or annually as decided between lessor and lessee.
3. What are the advantages of leasing?
For the Corporate Employee:
For the Corporate customer or Employer:
4. What is Residual Value (RV) structure and what are the options available?
The value of the car at the end of the tenure is known as Residual Value. The lease rentals are calculated in such a way that the employee pays only for the usage of the vehicle and not the residual value. Various residual value structures can be offered depending on risk profile of asset and understanding between customer and leasing company. Avis Lease offers two structures:
i. Fair Market Residual Value (FMRV):
In FMRV, Avis determines the residual value that can be fetched for the car at the end of the tenure and accordingly lease rentals are structured. Customer returns the vehicle back to leasing company at the end of lease term.
ii. Consistent Residual Value (CRV)
In CRV, residual value structure is determined by leasing company with a view to give buying option to the employee of corporate customers. Such leases reduce the risk of leasing company but the resale value risk still lies with the leasing company.
5. What are the fleet management services that Avis offers?
In the iconic Avis Red Carpet Lease product, Avis offers a full service operational lease that offers you a comprehensive mobility solution with value added services to offer a superior experience to customers. The details of the all the services are mentioned below:
1. New vehicle screening and buying as per employees’ requirement
Avis Lease would assist the employee with the entire vehicle screening process through its Fleet Help Desk, starting with sharing vehicle models, variant options, including Avis Analyst view on each of the model variants, prices and best negotiated deals.
2. Instant mobility service in case vehicle selected is in waiting
This is a unique service proposition exclusive for Red Carpet Lease, wherein Avis would offer a Self Drive vehicle to the employee whose desired vehicle is in waiting beyond 10 days. Instant mobility rental shall be aligned to the finally agreed rental for the employee’s chosen vehicle and shall be charged separately.
3. Comprehensive Repairs and Maintenance coverage
As a part of providing total peace of mind solution to the employees, fully comprehensive coverage on all kinds of repair and periodic maintenance including tyres and battery shall be provided. The employee will not required to pay anything to the service centre.
All expenses related to vehicle repairs and maintenance gets covered under fleet management rental. The rental charge varies with the monthly mileage expectation and specific vehicle model/variant.
4. Accident Repair management through comprehensive insurance plan
Avis Lease would cover all accident damage repairs under its comprehensive insurance plan through its alliance insurance provider. Insurance management is part of fleet management services and the responsibility of Insurance renewal and claim management shall remain with Avis Lease.
5. Accident Depreciation Waiver
To provide hassle free & zero cost accident damage repair experience to customers, depreciation component of damage repairs claims like plastic parts, glass etc. Is paid by Avis.
6. Replacement Vehicle
In case vehicle is going to garage for mechanical repairs work or accident repairs work, Avis Lease would provide a replacement vehicle within possible timeframe. This service would immensely assist employees to continue with their regular routine and ensure uninterrupted mobility during the lease tenure.
7. Pick and Drop service for repairs / maintenances
Avis Lease would provide pick up service for the vehicle to be sent to Service Station for maintenance or repair work and deliver the vehicle back to the employee.
8. AVIS Assist - 24 X 7 road side assistance for emergency
Mobility for employees also means exposure to risk due to breakdown; the Avis 24*7 road side assistance service would be available to employee as part of Red Carpet Lease.
9. Stay New Plan with periodic mint conditioning service
Another of our unique propositions revolves around our basic premise of keeping our leased vehicles in the best shape at all times and delivering a quality service to our clients. Under this service Avis would provide Mint conditioning service for vehicles under Lease on a periodic basis, wherein the vehicle would undergo interior and exterior re-conditioning.
10. Field Technician Support for proactive vehicle checks
Avis would provide Field Technician Support to assist employees with assessment of current or potential problems related to vehicle. The proactive assessment by our field technician helps in ensuring trouble free usage experience by employees Employees can also choose customised services under Avis Premium Lease product.
6. I already have a car can it be converted to an operating lease model?
Under Avis Sales & Lease Back product, Avis can buy your vehicle at the prevailing market price or the outstanding loan with your bank and lease the car back to you. Avis would also undertake the future fleet management and take the risk of the residual value. The maximum tenure cannot exceed 60 months from the date of first registration of the vehicle i.e. if the car has completed 24 months at the time of Sale & Lease Back transaction, the maximum tenure it can be leased will be 36 months.
7. What kind of insurance is provided with the car?
Avis provides car with comprehensive insurance cover through its allied insurance providers and takes the responsibility of renewals for the full tenure of lease and also claim management. Add to it with the Accident Depreciation Waiver service, that covers depreciation component of damage repair claims related to plastic parts, glass parts etc.
How do I request for servicing of my car?
While Avis will send proactive reminders for the regular services, you can also reach us at our fleet desk and inform us.
8. What are the exclusions in the fleet management service contract?
The minor repairs like tyre puncture, minor scratches & pollution check etc are to be taken care by the customer. Avis will also provide a user guide that gives all the information about the exclusions as well as guide to avail fleet management services.
9. What do I do in case of an accident?
In an unfortunate case of an accident, kindly inform Avis fleet desk immediately and they will render all the necessary help to deal with the situation.
Avis will take necessary action to get the vehicle repaired from Avis preferred authorised workshop.
10. What happens in case of theft or total loss?
In case the vehicle is stolen or is declared total loss, complete documents along with FIR and No Trace Certificate has to be obtained and provided to Avis. In valid claims, the contract will be terminated on the payment of the difference of the Book Value and amount paid by the insurance company.
If Total Loss Retention has been opted for that the amount will be capped as per the terms decided in the Master Lease Agreement.
11. What happens if I leave my company in the middle of the lease contract?