FAQ - Car Lease Policy
FAQ - Car Lease Policy
POLICY
Note: Employees eligible under the Company Car Lease Policy can choose to participate in
the Company Car Lease Policy. Once the employee selects the policy that he/she wants to
utilise, the same cannot be changed during the tenure of the lease.
2. Who will provide me a quotation and any approval required for processing?
This would be provided by the fleet administrator through Leaseplan based on employee’s
request. Once you are in receipt of the quotation, it is mandatory for you to raise a HR direct
ticket, get HR direct approval and share with fleet administrator.
4. How many cars can I lease under this policy at any given point in time?
Only one car can be leased under this policy at any given point in time. Also if you are
completing the lease period/foreclosure of your current car, the next car under car lease
program can be availed only after the providing the proof of ownership transfer (RC copy) of
your current car to the fleet administrator.
5. I was working with other units of SAP before joining SAP. Will my previous experience
be counted for the purpose of eligibility?
Yes.
6. I became a member of SAP India since my previous company was acquired by SAP,
am I eligible for this policy?
Yes.
7. Can I take a car in my hometown which is not in any of the locations where SAP has
an office?
No. The car can be taken only at the location where you work (i.e: where SAP SDC has its
offices)
8. Can the car be used in any location other than where I work?
No. The car is to be primarily used in the city where you work (i.e: where SDC office is
located), but can be taken outside for short durations by intimating company’s fleet
administrator and LeasePlan SPOC directly via e-mail. LeasePlan service branches, if any
in that location, will be informed accordingly to assist in case of emergencies.
9. Can I keep this car at a place other than where I stay (Parents Place etc.)? During
Relocation, can I leave the car in my hometown and allow my family members to use
No. This car is for employee’s official and personal use and hence must be with the
employee.
10. What happens if I move from one location to another? (Employer initiated and
employee initiated):
In case of Company initiated transfers, the cost will be borne by the company subject to
prevailing policy on internal transfer. In case of employee-initiated transfers, the cost has to
be borne by the employee.
12. If my spouse is also working in SAP, can we combine our salaries for the purpose of
eligibility under this scheme (basically can I buy a car of higher value than my base
salary since my spouse is also working in SAP).
No.
13. If an employee is based in a city other than his/her base location, will he/she be
eligible to avail the facility?
No
14. Under whose name would the car be? Can the car be transferred to my spouse /
parents / friends?
The car will be in SAP India’s name for the duration of the lease tenure. No, there can be no
transfer during the lease period. The agreement will have to be signed by the employee only.
15. I have applied for my driving licence and not received from RTO. Can I apply for car
lease based on my spouse’s/any other relatives driving licence?
No, Car lease can be availed only upon submission of employee valid driving licence copy.
Further learner’s licence is insufficient to avail car lease.
16. Can I bring in my existing car under this policy?
No
17. Can I bring a second hand (preowned) car under the policy?
No.
18. Can I bring a car owned by any of my family members under the scheme?
No.
19. Can I give the difference amount as down payment if we want to go for a car which is
in higher price range that permissible?
No. As per the policy the limits would remain fixed.
20. Can I make some down payment to lower my Rentals/ Ex showroom price?
No.
21. Is this benefit interest free? If not, what is the interest rate?
No, this benefit is not interest free. Once the employee has signed up on the car lease policy,
interest rate is fixed for the lease tenure and will not be changed in due course. Request you
to check the same in the lease calculator provided.
24. What are the Documents to be collected at the time of New Car delivery?
Employee will need to carry the company ID Card.
o Original Road Tax paid receipt to be collected from the dealer.
o Copy of purchase/tax invoice of the Vehicle to be collected from the dealer.
o Copy of Insurance cover note to be collected from the dealer.
o Vehicle Manual in Original.
o Original keys in Duplicate.
The Original Insurance cover note, and Insurance policy will be sent by LeasePlan to the
Employee directly.
25. Who will receive he original RC (Smart Card) and how long will it take?
The Original Registration Certificate (Smart Card) of the vehicle will be despatched by the
RTO directly to the SAP Registered office address within 2-3 months from the time of vehicle
registration. Original RC will be handed over to employee upon receipt by the fleet
administrator.
I. If the RC is received directly by the employee, submit the photocopy of the RC card to
SAP Fleet Coordinator within 02 working days of the receipt.
II. If you have not opted for a dealer from the preferred list, then it is the employee’s
responsibility to follow up the dealer/RTO for the original RC card and a photo copy
has to be submitted to the fleet administrator within 02 working days from the date of
receipt.
26. What happens if I want to foreclose the lease before the completion of the lease
tenure?
The employee is still employed with SAP India but wants to withdraw from the car lease
before the end of the agreed lease period. In such an event, the employee can:
a) Purchase the car, wherein the employee must pay the leasing company the book value
of the car (outstanding principal in the month immediately succeeding the month of
foreclosure) and any other cost, as specified in the foreclosure schedule. The undated
cheque, along with the car transfer papers /NOC will be handed over to the employee in
approximately 15 working days after realisation of the payment, OR
b) Return the car with keys and original car documents to the leasing company and also
settle the book value loss (difference between the market value and the outstanding book
value) and any other costs, as specified in the foreclosure schedule. If the vehicle is not
returned by the date of termination of the lease, the employee must pay for any losses
and damages (including late payment charges) to the leasing company.
Please note: Once the NOC documents has been issued, employee has to complete the
RTO formalities on his own. The NOC documents will be valid for 60 days from the date of
issue.
Employee need to maintain the minimum fuel level (quarter tank) to ensure smooth
pick up and drop process.
a) All Maintenance which includes periodic servicing and maintenance, all running repairs.
b) Accident Management
c) Pick up and drop of the car for regular service and maintenance
Any services that are not a part of the agreed contract will need to be borne by the employee.
31. What happen in case of any damage which occurs during the transit after the service?
Any damage during the pickup/drop will be treated as accident and it is LeasePlan’s
Insurance provider’s discretion to repair/replace the parts.
32. If an employee wants to add some accessories while taking the delivery, should he/she
pay for that or can it be part of the financing?
As a policy requirement from SAP, LeasePlan does not fund for any accessories and the
same has to be borne by the employee. Also, any repairs of the same will not be a part of
fleet management services. Any insurance for such accessory would not be covered.
33. If there is a damage to the Fastag sticker affixed in the car or for any reason there is a
balance pending in the Fastag account, who will bear the cost?
Employee
34. Is the residual amount final? For my last lease vehicle, at the time of completion I was
asked to give another cheque (with increased value) than the UDC provided.
The UDC amount mentioned in the mail may not be final residual value to be paid at the end
of the tenure. The residual value would be 21% and 26% (For 44 and 36 months) of the ex-
show room price of the car inclusive of applicable Taxes.
35. Will LeasePlan’s insurance premium always be higher than the dealer quotes?
The premium will be based on the tie up between Leaseplan and their Insurance provider.
36. According to the policy the lease rentals should be paid in EMIs every month. Is this
amount directly deducted from the salary? If so, then is the EMI amount (deducted
from the salary) considered as taxable salary or non-taxable salary?
The entire year’s car rental is blocked from your salary and the same amount is reduced
from the gross salary, so that you get the tax exemption.
Note:
◼ User has to do constant follow up with police station to get Non-Traceable Report (NTR) -
173CRPC.
◼ These are the mandatory documentary requirements of insurance company. In case of any
additional requirement, which may vary from case to case basis and for different insurance
companies, the users will be informed. The sequence or the requirement of documents
mentioned above can be changed by insurance company any time without any prior
intimation.
◼ Responsibility of providing the above documents on time is completely with client.
◼ Formats of Letter to RTO, Letter to SHO and Letter of Subrogation are enclosed below.
Letter to RTO.doc Letter To SHO.doc Letter of
Subrogation.doc
If there are any other steps/documents involved in the process, employee should reach out
to the fleet administrator or fleet administrator will keep the employee informed.
39. What is the process for Foreclosure?
Contact the fleet administrator with the current Kilometre reading and the proposed date of
foreclosure. The fleet administrator will forward your request to LeasePlan.
Lead Time for providing Foreclosure Statement is 2 working days.
On receipt of the foreclosure payment, Service provider will issue the NOC and Form 35 to
SAP within 15 working days.
41. How long it takes to foreclose the vehicle and who bears the cost for ownership
transfer?
Once the amount as mentioned in the Foreclosure statement is credited to LeasePlan
account, the NOC would be released within 15 working days and the lease will get foreclosed.
Upon receiving the NOC from SAP/LeasePlan the employee should ensure ownership
transfer or take care of the ownership transfer to the End buyer and share the Ownership
transfer documents to SAP for their records. The transferred copy of RC should be submitted
to SAP Fleet Co-ordinator within a month from the date of issue of NOC. In case of any
additional documents required for ownership transfer please contact fleet administrator. For
Ex: Gurgaon there may be a need of Seller Affidavit in some RTO’s. All cost for ownership
transfer must be borne by employee.
43. Will SAP help in getting loan from banks to close the foreclosure amount?
No
44. What are the documents that are required to obtain the car lease facility?
Please refer to the checklist that would be shared upon specific request to SAP fleet
administrator.
45. If an employee leaves SAP, is it possible to have a colleague take over the contract
with LeasePlan and continue paying the Rental?
Yes, employee can transfer the car to a colleague. However, this will be applicable only if the
other employee is eligible for the car lease from SAP.
46. What happens if the key is lost during the lease period?
In such an event, the employee has to bear the cost of the duplicate key.
47. If employee goes on maternity leave under loss of pay, how does Rentals be
deducted?
In such cases, rental needs to be paid by employee to SAP through cheque on monthly basis.
(For more details contact payroll dept).
48. What is RV (Residual Value) and why should I pay this amount?
RV is treated as the price at which the car is sold to a second party (user). The RV is 21% &
26% of the Ex-showroom Value plus applicable taxes.
49. What is the process to be followed after lease expiry, to transfer the RC card to the
employee name?
Upon the receipt of the NOC and transfer set of documents from fleet administrator,
employee has to get the ownership transferred from SAP to employee. The NOC provided
by Leaseplan will be valid for 60 days from the date of issue. Employee needs to complete
the formalities before the expiry date of the NOC. Duplicate NOC charges would be Rs 1000/-
In case of any additional documents required for ownership transfer please contact fleet
administrator. For Ex: Gurgaon there may be a need of Seller Affidavit in some RTO’s. All
cost for ownership transfer must be borne by employee.
Employee must ensure Insurance is renewed prior to the expiry. The renewal can be done
by the employee with Leaseplan service provider by paying the amount or opt to do on own.
If the employee prefers to do on own, employee has to keep the fleet administrator and
leaseplan informed at least 02 months in advance to closure of the lease tenure. Copy of
the valid Insurance to be shared with Leaseplan & fleet Administrator within 01 month in
advance to the closure of lease tenure.
User to file the FIR within 24 hours in case of an accident which involves death or injury to
anyone, or in-case of damage to 3rd party vehicle. If damage is only to own vehicle, please
connect with LeasePlan to take advice on FIR filing
◼ LeasePlan to be intimated through the service direct line number, immediately. User to
fax/mail the Accident & Theft Intimation form along with the driver’s driving licence copy and
copy of Insurance Policy.
◼ On receipt of the above, LeasePlan will facilitate pick up of the vehicle and drop it to the
authorised workshop for repair. In case accident occurs outside the contracted boundary,
damage repair work to be started only after approval from Insurance Company.
◼ Charges up to Rs.1500.00 would be reimbursed by the Insurance Company.
◼ LeasePlan will arrange for Insurance survey and coordinate with the workshop for the
repairs.
◼ Damage repair work required to be carried out under Insurance Policy will be decided by the
Insurance company’s surveyors and any disputes that may arise, will be settled as per the
Insurance Policy guidelines.
◼ LeasePlan will directly settle all repair bills and any Insurance short payment. (Not applicable
in case of a total loss/theft or if insurance company declares the claim as invalid)
◼ On completion of the repair job, LeasePlan will deliver the car to the user.
Note:
(i) Final decision on all disputes rests with the Insurance Company.
(ii) In case it is proved that documents are not valid at any stage or the accident is caused
due to negligence of the driver, the Insurance company can decide to reject or settle the
claim as per their discretion.
Accident_Intimation_
form xls.xls
55. Can employee give their vehicle to their own choice of service provider?
No, LeasePlan has designated authorized workshops for maintenance and repair of the
vehicle. The vehicle shall be taken only to these workshops for any repair and/or
maintenance jobs. If any invoice is received from a workshop, which is not a designated
authorised workshop, LeasePlan reserves the right to refuse to honor such invoices.
a. Cost of towing
The same is borne by LeasePlan, since 24 Hour helpline assistance is taken care by
LeasePlan. However, if the towing is from outside of contracted boundary, then employee
will have to bear the towing expense.
b. In case of an accident, who pays the short fall in the insurance money received?
The same is taken care of by LeasePlan which is Damage Waiver service.
57. In case the vehicle is impounded by authorities for any reason, who will be responsible
to get the vehicle released?
If the vehicle is impounded by authorities for any reason, it will be the employee’s
responsibility to get the vehicle released. Also at the end of the lease tenure, the employee
will have to buy the car. The cost for getting the vehicle released is also to be borne by
employee.
58. What is the process for booking the car for routine service (Bangalore/Gurgaon)?
◼ Contact LeasePlan office (refer below for contact details) 7 days prior to a scheduled service.
Clearly indicate the location and time for LeasePlan to pick the car up.
◼ In case the car is being self-dropped (please note this arrangement is applicable only for
LeasePlan preferred dealers), inform LeasePlan 7 days in advance. LeasePlan will not be
liable for any cost/repair of the vehicle, if they are not intimated about self drop 7 days prior
to the service.
◼ Service Request Form (SRF) to be faxed / emailed to LeasePlan. One copy of the SRF to be
given to the driver and the other copy to be retained by the user.
◼ LeasePlan will pick up the car and drop it to the workshop. The Servicing of the car will be
done as per the SRF. The car will be dropped back after the service is complete.
◼ User to verify service conducted with the SRF.
◼ Inform LeasePlan immediately if any of requisitioned jobs are not carried out, to enable them
look into it immediately.
◼ Employee need to maintain minimum fuel level (quarter tank) to ensure smooth pick up and
drop process
Sale & Lease Back Quote Within 4 working days (Post evaluation)
Please note:
• All accessories like Stereo panel, cassettes, CDs or any other belongings to be removed
from the vehicle. LeasePlan will not take any responsibility for loss/damage of any personal
belongings.
2. On weekends/holidays
→For case 3
If the car is out of the contracted boundary (which is defined as within the city limits as per
contract), the user will have to take the car to the nearest workshop and contact LeasePlan
immediately. LeasePlan will advise on how to take the repairs forward depending on whether
it has any prior contract with the workshop. If the repairs cannot be coordinated with the
workshop, the user can get his car repaired and send the bill to LeasePlan for reimbursement.
The car will otherwise have to be brought to a workshop within the contracted boundary for
LeasePlan to take the repairs forward.
Please note: The reimbursement is limited to only repairs and maintenance for the car and
not for towing or breakdown assistance.
60. Can the car be given directly to the workshop for service?
No, User should contact LeasePlan directly for any service or accident repair. LeasePlan will
not be liable for any cost/repair of the vehicle, if handled independently by the User.
Inclusions :
Battery Maintenance: Covered under the plan. Leaseplan would replace equivalent to the
brand of the same specification.
LP Assist: 24 hours breakdown assistance is offered as Complimentary and is not
included in the lease rentals for all the vehicles on lease with LeasePlan on full service
lease only. (Not applicable in case of Racer Policy)
Pick Up and Drop: To save time of your employees, LeasePlan offers a pickup and drop
off service to take the car from your office to the workshop and return it back after the
service/repair is done (part of lease rentals)
Damage Repair: Part of lease rentals
In case of accident repairs, LeasePlan will take care of all repair work. LeasePlan normally
also handles insurance related work and coverage of Insurance depreciation costs,
ensures that the work starts on the car in shortest possible time, and the car is returned
back at the earliest possible. We also ensure that all payments to workshops are settled
directly by the insurance company. This way you avoid first paying to workshop then
following up with Insurance Company to get the claim.
Damage Waiver: At no point in time, Insurance Company pays for the depreciation
Shortfalls and plastic parts, however the same is covered with the unique product of
Leaseplan i.e. Damage Waiver.(Part of Lease rentals)
Tyre Replacement: Covered under the plan and decision to replace to be taken by
leaseplan. This would be based on the technical report by Leaseplan’s team. Leaseplan
would replace equivalent to the brand of the same specification.
Exclusions :
Rubbing & polishing, Teflon coating, underbody coating, body corrosion, seat dry-cleaning,
washing and Cleaning of cars other than during normal servicing.
Replacement of accessories such as wheel caps, antenna, side view mirrors, seat covers,
mats, mud flaps, speakers, stereo, seat upholstery etc.
Filing of the FIR in case of an accident. User is responsible for filing FIR.
Damages due to user negligence such as, running on a flat tire, not paying heed to oil
warning lamp, temperature gauge, damages due to wrong / incorrect usage of vehicles
such as overriding the clutch, etc.
Tyre puncture repair, Pollution Under Control certificate.
Damage due to any additional fitments to the vehicle or fixing of stickers etc.
Account Manager
Guruprasad V R
[email protected]
Service Direct
1860500-50-50 or 0124-4660000
[email protected]