Decision Tool
Car Loan vs Corporate Lease
Tax-aware comparison — bank loan with EMI vs corporate lease with tax shield, buyout, and perquisite. Output is net cost-of-ownership over the tenure.
Inputs
Inputs
Lease bundle should include EMI-equivalent + insurance + maintenance + fuel (whatever your employer covers).
₹
₹
%
yrs
₹
%
Common values: ₹1,800 (≤1.6L w/o driver) · ₹2,400 (>1.6L w/o driver) · +₹900 if driver provided
₹
%
%
Recommendation
Corporate lease wins by ₹1.92 L over 5 years thanks to the tax shield at 30% marginal rate. Net cost: ₹10.46 L vs ₹12.38 L for the loan.
Loan · Net Cost
₹12.38 L
EMI ₹27,302/mo
Lease · Net Cost
₹10.46 L
Tax shield ₹4.97 L
Loan Route
| Down Payment | ₹2,00,000 |
| Total EMIs | ₹16,38,145 |
| − Resale at end | -₹6,00,000 |
| Net Cost | ₹12,38,145 |
Lease Route
| Gross Lease (tenure) | ₹18,00,000 |
| + Buyout | ₹3,00,000 |
| + Perquisite Tax | ₹43,200 |
| − Tax Shield | -₹4,96,800 |
| − Resale at end | -₹6,00,000 |
| Net Cost | ₹10,46,400 |
Note: Tax shield assumes full deductibility of the lease bundle from your CTC. Verify with your HR/CA — actual deductibility depends on company policy and the perquisite valuation rules.