1. What is operating lease in case of vehicles?
The contract is entered into between the leasing company (Lessor) and the Corporate (lessee) to provide vehicles for a predetermined term for use by lessee or its employee. The leasing company is the legal owner of vehicle and passes on the right of use of the car to the Lessee for the duration of contract. Upon expiry of lease period, the vehicle is returned back to the leasing company and the lessee does not have the option to buy the vehicle.
Duration of the contract is from 1 to 5 years from date of its first purchase and not beyond 5 years.
2. How does it work?
Lessor procures the vehicle as per specifications provided by lessee and delivers the same to the lessee for the pre-decided tenure (from 1 to 5 years, not exceeding 5 years in any case) on lease along with fleet management services taking away all the hassles of managing comprehensive maintenance, insurance renewal, damage repairs & insurance claims, replacement vehicle, pick up & drop, 24*7 emergency road side assistance for a worry free driving experience during the term. The Lessor charges a fixed lease rental to be paid monthly, quarterly, half yearly or annually as decided between lessor and lessee.
3. What are the advantages of leasing?
4. What is Residual Value (RV)?
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. It is determined depending on risk profile of asset, the kilometers and several factors that have an impact on it.
5. What are the fleet management services that Avis offers?
6. I already have a car can it be converted to an operating lease model?
Avis can buy your vehicle at the prevailing market price arrived at through independent bids and lease it back to you. Avis may also undertake to include fleet management services and take risk on its future 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?
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. Cosmetic jobs like extra washing / cleaning, drying wet carpet, antirust treatments, Teflon coating, 3rd party towing bills or any incidental charges in case of breakdown and / or accident, use of additives, Repair of improper repairs carried out or attempted to do so, Crane, Hydra or special transportation services, retrieval of vehicle, charges for Toll, fuel or any other incidental charges, scratches where repainting is required but not covered under insurance, repairs arising due to misuse/ negligence/ damage/ missing items or from use of vehicle not as specified in the owner’s manual supplied by its manufacturer
9. What do I do in case of an accident?
In an unfortunate case of an accident, kindly inform Avis to render all the necessary help to deal with the situation. Avis will take necessary action to get the vehicle repaired from Avis preferred authorized 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?
If the employee is joining another company, lease rental can be transferred to the new company subject to Avis and the new employer agree to get in to an agreement. However, if this is not possible, the contract can be closed as per the terms agreed. Alternatively, the same can be passed on for use to any employee in the same company. Or any employee is eligible to buy the car at the fair market value at the discretion of the leasing company.