Key Takeaway
Leasing makes financial sense for cars driven under 15,000 km/year or replaced every 3–4 years. Buying is better for long-term ownership (7+ years) and high annual mileage due to lease kilometer penalties.
Cab / Leasing is cheaper!
Saves you approximately ₹90,558 over 5 years.
Cumulative Outflow Over Time
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Frequently Asked Questions
Is leasing a car cheaper than buying?
Leasing has lower monthly payments but you never own the asset. Buying costs more upfront but you have an asset at the end. For most individuals in India, buying a reliable used car (2-3 years old) is the most cost-effective option.
What is the total cost of owning a car?
Beyond the purchase price, factor in: insurance (₹15-40K/year), fuel (₹3-8K/month), maintenance (₹10-20K/year), parking, tolls, and depreciation (15-20% per year). A ₹10 Lakh car can cost ₹20 Lakhs over 5 years.
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