FAQ s. 1. How do I benefit from an Operating Lease?

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Ashlynn Norton
8 years ago
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1 FAQ s 1. How do I benefit from an Operating Lease? No blocking of capital for non productive assets Tax saving option, Cash in Hand goes up with CTC remaining the same. Outsourcing the total Risk and Administration. Lease rental calculation based on difference between the investment value and estimated market value at the end of contract thus providing bigger cars within the same budgets No Resale Risk. No Down Payment, arranging documents visiting showrooms etc. Better management by specialists thus Improved satisfaction. Concentrate totally on your core activities freeing up valuable resources Just pay a fixed monthly cost for using a particular vehicle 2. What is Fleet Management? Fleet Management is a complete mobility solution for corporates. It involves: Analysis of a company's existing fleet, car policy, vehicle requirements and investment potential. Expert counseling on the fleet composition and acquisition resulting in considerable savings and optimum fleet efficiency for the company. Implementation of innovative leasing options thus freeing customers' resources from non-productive assets. ALD s proactive maintenance program through authorized repairers helps control & reduce costs through reduction in downtime, optimal fuel consumption, special warranties. Take care of all the administrative work and related hassles so that the company need not deploy its valuable resources Management of fleet including maintenance, accident handling and insurance management with value added services like roundthe-clock emergency road side assistance, replacement vehicles and chauffeurs on request. Fleet resale at the end of the contracted period.

Lease rental calculation based on difference between the investment value and estimated market value at the end of contract thus providing bigger cars within the same budgets No Resale Risk.

2 3. What is RV (Residual Value) and how they Impact the quote? The value of the Car at the end of the tenure is called Residual value. ALD takes the Residual value risk based on various market intelligence reports and analysis. 4. What happens at the end of the tenure? The car is to be returned to ALD as the residual value benefit is given at the beginning of the contract. 5. I already own a car, I don t want to sell and take a loss but want to enjoy the benefits of Operating Lease. Under ALD s Sale & Lease Back product, your car will be bought by ALD, the same car will be leased back to you, with all future risk on ALD. Depending on the amount paid, ALD will disburse money to the Financing Company or to you. 6. I have a car registered under my Wife s / Father s name - is Sale & Lease Back applicable here? Yes, the only condition is the vehicle has to be leased to the user, an employee of the organization. 7. What happens if I leave my Company in the middle of the Lease Contract? There are two options; If the employee is joining a firm which is a existing client of ALD, lease rental can be transferred to that new company subject to NOC from the employer and acceptance of the same with the new company. The contract can be terminated by paying the difference between the Foreclosure Value and the Highest Resale price at the time of termination and the contract stands terminated immediately. 8. Where does ALD have branches? The corporate headquarters for ALD in India is at Mumbai. Branches are located at Delhi, Bangalore, and Hyderabad

The car is to be returned to ALD as the residual value benefit is given at the beginning of the contract. 5.

3 9. Can ALD also manage fleets in cities other than the above? Yes, Currently ALD manages fleet in 150 locations where we do not have a direct presence. We have tie-ups with vehicle manufacturers and dealers to provide all services and support to our customers. 10. What is the contract period? Contract periods generally range from 3 to 5 years duration and for an estimated number of kilometers driven. 11. What is covered under Maintenance? Any exclusion? Maintenance includes all periodic services and repairs as may be necessary for the specific tenor and the mileage. Vehicle maintenance services exclude the following: Fuel and additives Washing & cleaning, polishing, anti-rust treatment, Teflon coating, flat tyres and parking Additional accessories, fitments, repairs or consequential repairs arising out of such fitment on the vehicle, not originally fitted by the manufacturer (accessory fitted by an authorized dealer(s) is also part of the exclusion) Any repairs resulting from abnormal use of the vehicle, failure to follow the manufacturer s handbook and service book, faulty use (lack of oil, driving with a warning light on etc.) or a problem due to poor fuel quality or a fuel error. 12. How do I get the vehicle serviced? Do I contact ALD or do I do it directly with an authorized service centre? The user/ employee needs to fill in the maintenance request form and send it directly to ALD. Any specific attention that needs to be paid to the vehicle during the service can be mentioned in the form. (This applies if ALD Maintenance service is opted)

Contract periods generally range from 3 to 5 years duration and for an estimated number of kilometers driven. 11. What is covered under Maintenance? Any exclusion?

4 13. What happens when the vehicle goes in for servicing and does not return by evening? Do I have to make alternative arrangements? For normal service repair and maintenance, if a vehicle is detained in a workshop beyond a day, ALD shall provide a back-up / relief vehicle the following day, in certain selected cities as specified in the relevant vehicle lease contract. This shall not apply to accident, damage repairs, theft or total loss cases unless specified in the supply conditions in the vehicle lease contract 14. Can I go to any of my preferred dealer as my preferred dealer is closer to my house or do I have to go to only your Authorized service centers? Vehicles should be maintained and / or repaired only at authorized service centers and not from any road-side vendors. 15. What happens in case the vehicle suffers a breakdown within the city or outside the city limits? ALD offers 24 (twenty four) hour emergency breakdown services in over 150 cities in case the vehicle is immobilised on the road. Even if your vehicle suffers a breakdown outside the normal coverage area, we will do our best to try to reach out to you. 16. Will the vehicle be picked up and dropped back, when the vehicle is going in for servicing at the authorized workshops? ALD offers a door to door service in select cities while the vehicle is undergoing maintenance and repairs. 17. What happens in the case of total loss/ theft of the vehicle? Theft or Total loss, the employee shall obtain from the nearest police station a copy of the ( FIR ), a No Trace Certificate (if applicable) from the same police station, all documents, original keys (with duplicates) and information be provided to ALD as may be required. 18. Are the parking/ Toll charges included under this arrangement? No, these are not included.

in the relevant vehicle lease contract. This shall not apply to accident, damage repairs, theft or total loss cases unless specified in the supply conditions in the vehicle lease contract 14.

5 19. What are the various value added services? Vehicle Selection: We provide expertise in the selection of vehicles which would be appropriate for your employee s needs, organising test drives, arranging for trade-ins, bargaining the price to ensure that the best possible deal is obtained Delivery: We arrange for the delivery of the vehicle at a time and place that is most convenient for the user Insurance: We arrange for the vehicle s insurance to cover all passengers and drivers for the entire lease period Maintenance: We take care of all maintenance requirements of the vehicle through authorised repairers. Door to Door Service: We arrange for vehicles requiring service to be picked up from users and to return the vehicle after completion of the service at a place and time which is convenient to them Damage Repairs & Insurance Claims: In the unfortunate event of any damage to the vehicle, we will ensure that immediate assistance is given through roadside assistance and will employ specialists to deal with insurance companies and take necessary steps to get the vehicle repaired and put back on the road 24 Hour Emergency Roadside Assistance: If any vehicle is stranded on the road within specified coverage areas, our roadside assistance service will ensure that a rescue team is in attendance within a reasonable time to provide assistance required to put the car back on the road. Relief Car: Where you car is held up in a workshop whilst undergoing routine maintenance for more than 24 hours, we provide a relief car facility which you can avail. At any other times such as waiting for a vehicle delivery or for accident repairs, we can provide a relief car upon request. Partial Loss Damage Waiver: In case of any accident or major repairs Any Insurance disallowance will be borne by ALD, irrespective of the Cost.

ensure that the best possible deal is obtained Delivery: We arrange for the delivery of the vehicle at a time and place that is most convenient for the user Insurance: We arrange for the vehicle s

THE EASIEST WAY TO AN IDEAL SOLUTION FOR YOUR VEHICLE FLEET

THE EASIEST WAY TO AN IDEAL SOLUTION FOR YOUR VEHICLE FLEET ACCIDENT MANAGEMENT COMPARISON OF QUOTES CHANGE OF VEHICLE CHANGE TYRES FIND THE RIGHT CAR MAKE ORGANISE A REPLACEMENT VEHICLE COSTS FOR MANAGEMENT POLICY MANAGEMENT BUDGETING TAKE OUT INSURANCE LEASE