In a bid to make its cars more attainable, Honda Cars India has tied up with TranzLease to offer ‘Smart EMI’ auto finance solutions to its customers. The company will be leasing its cars via TranzLease and offer customized EMI packages that not only include the cost of the vehicle but also registration, insurance and maintenance requirements of the car during the financing period. The company says that Smart EMIs are much lower than the standard EMIs that customers opt for via the standard banking network. Customers will have the option to lease the car or return it at the end of the tenure or retain the car by paying the balance amount to the company. In addition, Smart EMI guarantees a high resale value on the vehicle.
Speaking about the innovative auto finance solution, Rajesh Goel, Senior Vice President and Director, Marketing & Sales, Honda Cars India Ltd said, “Honda is committed to providing innovative ownership solutions with evolving customer preferences. The first of its kind SMART EMI option now makes it easier and convenient for the consumer to enjoy the Honda range of cars in a unique financing option.”
Anindya Chakraborty, MD & CEO, TranzLease said, “In today’s age where consumers want a car but uneasy about the associated hassles, risks, cost of ownership, Smart EMI comes as a solution that allows the love of car without the chaos – Smart EMI blends the best features of auto loan, auto lease and subscription model to create a true fit for the Indian car buyer.”
Initially, the service will be offered to customers in Delhi-NCR and Mumbai and will be later made available in Bengaluru, Pune, Hyderabad and Chennai. The Smart EMI plan can be availed at any of the Honda dealerships in the cities, and based on the response it will be rolled out pan India at a later stage. Post-delivery of the car, Smart EMI will have a personalized car portal for customers to manage the entire car life-cycle during the leasing period.
Smart EMI also provides protection from risk arising out of insurance tariff fluctuations, unforeseen maintenance costs and fluctuation in the resale value of cars. While the payment solution is innovative for cars, Bangalore-based start-up OTO Capital introduced something similar earlier this year that promise 30 percent lower EMIs when on a vehicle when compared to that from a bank. Much like TranzLease, OTO too offers the option for complete ownership or to return the vehicle at the end of the tenure.
