Convert all your discounts into points
You earn discounts on (a) car price (b) car insurance (c) car accessories. Under the traditional lease method these discounts are reduced from the cost of car and the EMI on your car is calculated post such discount.
Disadvantage – You actually lower your EMI but along with the same you lower your tax benefit.
Our method – Discounts earned are shifted to the Loyalty Program (1 Indian Rupee = 1 Point) – accordingly the EMI on the car is calculated on the full cost of the car thereby enabling 30% tax benefit on the discount amounts too !!! Moreover, the entire discount amount is also available to you for redemption for same value. Accordingly the discounts earned by you increase substantially.
Illustration – Assuming a discount of INR 30,000 on the car you choose, the EMI is reduced to that extent. However, under our method you will continue to pay EMI on INR 30,000 and thus get a tax benefit of INR 9,000 on the same. But you do not pay higher as the entire INR 30,000 is also provided to you as Loyalty points So in essence you are getting INR 39,000 (INR 30,000 as loyalty points and INR 9,000 as additional tax benefit). So you benefit by 30%.