Lease Program Overview

Car lease program works under an operating lease structure. The employee gets in
to a triparty agreement with lessor, lessee as Company, and co-lessee as the emp
loyee.
Under operating lease, lessor is the owner of the car and in return for regular
lease payment, the lessor allows co-lessee to use the car for a stated lease ter
m.
Contrary to rental, a lease arrangement is commitment based and any foreclosure/
pre-mature terminations of lease requires user to pay the complete book value of
the asset and close the lease arrangement accordingly. However, for the purpose
of simplicity the user will be provided with a flex-it/easy termination table o
ptions as shown in Section 3
Foreclosure/Early Termination based on which a fore
closure option can be exercised.
Post the original lease tenure is over, the lessee can either close the lease by
returning the car or re-lease the same car for an additional term upto a maximu
m of five years.