Tata Nexon EV Leasing VS Loan Full Cost Comparison
H. Karan Kumar
Updated on Sept 19, 2023 | 6 min read
Leasing is super under-rated in India despite its unlimited benefits and cost-effectiveness loan. Unfortunately, it has taken the front seat in India. But why is that? Cutting all the crap, let’s face it straight.
The only superiority loan has over leasing is, the reselling cost. In a loan, you own the vehicle after years of payments, and at the end of the loan tenure, people recover their loan interest by re-selling their vehicle. Whereas in EV leasing, one doesn’t get the car; hence, there is nothing left to re-sell after the loan tenure ends.
However, this story will change with the upcoming EV revolution because the reselling cost of electric cars has become negligible due to the battery degradation in E-cars and now that the factor of reselling cost has gone, EV leasing become superior to that of loan.
Now that we know why leasing an electric vehicle is more beneficial than taking a loan, let’s take the example of Tata Nexon EV and break down its Lease vs Loan financial statement and see what makes more sense, Lease or Loan.
Nexon EV Loan VS Lease:
Total cost of ownership (TCO) for buying versus leasing a Tata Nexon EV in India over five years.
*The figures provided are estimates, and actual costs may vary.
Buying:
Item | Cost |
Initial Cost | ₹15,60,000 |
Maintenance Cost | ₹15,000 per year |
Annual Run | 15,000 kms |
Cost of Electricity/Fuel | ₹7/unit |
Running Cost/km | ₹0.875 |
Running Cost/Year | ₹13,125 |
Running Cost/5 Years | ₹65,625 |
Total Ownership Cost | ₹16,40,625 |
Nexon EV on Loan financial breakdown
- Purchase Price of Tata Nexon EV: ₹15,00,000 (approximate starting price)
- Down Payment: ₹3,00,000 (20%)
Loan Term: 60 months (5 years)
- Interest Rate: 8% (average interest rate for car loans in India)
- Annual Maintenance Costs: ₹10,000 (estimated)
- Running cost for 5 years: ₹65,625/-
Nexon EV on Lease financial breakdown
- Lease Term: 60 months (5 years)
- Monthly Lease Payment: ₹25,000 (approximate)
- Down Payment (if any): ₹0
- End-of-Lease Charges: ₹0 (assuming no excess wear and tear)
Nexon EV Loan VS Lease Calculations:
Buying:
- Loan Amount: ₹15,00,000 – ₹3,00,000 = ₹12,00,000
- Monthly Loan Payment: Using a loan calculator, the monthly loan payment for a ₹12,00,000 loan at 8% interest over 60 months is approximately ₹24,000.
- Total Loan Payments: ₹24,000/month x 60 months = ₹14,40,000
- Total Maintenance Costs: ₹10,000/year x 5 years = ₹50,000
- Total Cost of Ownership: Down Payment + Total Loan Payments + Total Maintenance Costs + Running cost = ₹3,00,000 + ₹14,40,000 + ₹50,000 + ₹65,625 = ₹17,55,625
Leasing:
- Total Lease Payments: ₹25,000/month x 60 months = ₹15,00,000
- Total Cost of Ownership: Total Lease Payments = ₹15,00,000
Comparison:
- Buying TCO: ₹17,55,625
- Leasing TCO: ₹15,00,000
Apart from financial gains, EV leasing also has various other benefits.
Nexon EV lease from Zecat:
Zecat provides you with the best EV leasing solutions dedicated to electric vehicle leasing, and if you’re willing to buy Nexon EVs, here’s how Zecat can save you money and provide you with greater comfort.
While other leasing companies straight up provide you with an EV, Zecat goes a few miles further and gives their customers a complete package of EV solutions with the following services with no added cost:
- On-demand EV charger installation
- Free Doorstep maintenance
- Free expert consultation
- Roadside Assistance
- Mobile Charging (EV charging on demand)
Charging support: Zecat will install a dedicated smart EV charger at your desired location, which you can use for fast and slow charging.
Servicing and Maintenance: Zecat will provide “free” doorstep maintenance and expert servicing for your electric vehicle.
Fully Insured vehicles: The vehicle you’ll get will be fully insured, and you don’t have to spend a single penny on the vehicle’s insurance.
With the resolution to switch to India Electric this new year, Zecat will offer its first 50 customers free perks and a free lifetime expert EV consultation.
Zecat is one of India’s few EV leasing companies with a robust network with various dealerships and a deep understanding of customer’s needs and pain points. With the relevant experience and unbreakable spirit, Zecat is moving intensely to solve all customers’ pain points and provide our audience with a great EV-owning experience.
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