Mobility Blog

The responsibilities of leased car users

/ Theme(s): BLOG, All articles
The responsibilities of leased car users

There are certain responsibilities that come along with the benefits of business car leasing, that employees need to fulfil. This blog mentions what those responsibilities are, including the times when the employee chooses to extend the contract or end it as per the contract.

Today, people as well as organizations do not have to be chained with the shackles of huge car loans, in order to experience the convenience of driving advanced car models. In fact, they can work around the financial inconvenience and simply opt for vehicle leasing. Private lease or business vehicle leasing is an idea that has gained much popularity over the last decade, especially in areas like Europe and North America. It offers several benefits to organizations and individuals like no or low down payments, hassle-free usage as well as maintenance services, access to the latest vehicles with updated safety features, and no risk on resale value. So, it is perfect for those who prefer to have their hands on the latest or best car models that fit their specific requirements, without burning a hole in their pockets. 

However, regardless of how favourable this is, there is a sense of responsibility that leased car users need to undertake, in order to ensure uninterrupted usage. The responsibilities that you must fulfil as a leased car user, are as follows: 

  • Ensure you do a weekly checkup on fluid levels, including battery, tyre pressure, coolant, and treads. 
  • Obtain a Pollution Under Control (PUC) certificate, as per the relevant traffic authority rules. 
  • Keep all important documents in the car that the authorities might ask for, including the manufacturer’s manual, registration document, insurance policy, and valid PUC certificate. 
  • Read the user guide given by the car leasing company and adhere to the guidelines mentioned within it. 
  • Inform the leasing company before sending the car to a workshop, to ensure that the leasing company approves it.

The remaining responsibilities of leased car users are divided into two categories, based on whether they choose to extend the contract, or surrender the vehicle at the end of the lease period. 

In the first case, they need to convey the mileage and tenor for extension, and sign a fresh agreement. The lease rental will be revised on the basis of the values given in the optiflex sheet. 

In the second case, they need to submit the keys, original RC, tool kit, and a copy of the insurance. Moreover, they also need to ensure that the vehicle is given back in its standard condition, as mentioned in the ALD user guide

The odometer reading will be taken once the vehicle has been given back, which will be compared to the contracted mileage. If the reading is more than that, they will have to pay the excess mileage charges, as per the optiflex matrix

If the vehicle is underutilized, ALD pays back to the employee *(T&Cs apply). 

So, business car leasing can be beneficial for employees as well as organizations, throughout the lease contract, if they cooperate with the leasing company, and fulfil all their duties as per the agreement. It not only helps them make the most of their leased vehicles, but also makes the relationship with the leasing company better, which works wonders for them when they opt for leasing, the next time.