Let me explain this to you as easily as I can.
AYour understanding is correct in that purchasing a car outright with your savings is generally the most cost-effective option, particularly for a depreciating asset which means its value is constantly droppinglike a car. So, paying cash for something thatThis is losing money value meansdue to the fact that you’re losing money in two directionsif you take out a lease or loan, you will have to pay interest and fees, which iscan add up to a significant amount over the life of the loan or lease. Furthermore, if you use your savings to purchase the car, you will own it outright and will not have to worry about monthly payments or the possibility of defaulting on a good thingloan or lease.
It only makes sense to start consideringOn the other hand, leasing or financing a car loan as ancan be a good option when you have the cash available to pay for those who want to save money and spread out the cost of the car over time. If you wanttake out a lease or loan, but you feel like you can find a better use for that money that is worth payingstill benefit from the tax-saving aspect if you are eligible for interest deductions. In India, you may be able to claim tax deductions on the autocar loan interest, but the exact rules and eligibility criteria vary depending on your individual circumstances.
ThisIf you're thinking about leasing or financing a car, I'd suggest researching the various options available to you, including the interest rates, fees, and terms associated with each. You should helpalso consider your overall financial situation, including your income, expenses, and savings, to determine whether you make acan afford the monthly payments and whether it makes sense to incur additional debt. The decision to lease, finance, or pay cash for a car ultimately comes down to your personal preferences, financial goals, and circumstances.