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Old 21st March 2006, 13:34   #16
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Quote:
Originally Posted by GTO
Buttttttttttttttttttt you must keep in mind that the interest rates on a second hand car loan are MUCH more than on a new car. So loan seekers...beware.

GTO
Sadly this is a misnomer GTO, True used car interest rates are higher than those for new cars however the difference is not substantial incase of used car loans from SBI.

I don't know the current situation with the increased interest rates but around 2 months back i was offered a flat interest rate of 8% for a 5 yr old used car loan by SBI and that too without negotiations...my emi for a 5 yr 1 lac loan worked out to be just 2k pm....now isn't this in par with the int rates offered on new cars ???

~A
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Old 21st March 2006, 16:43   #17
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Hi Aditya !!

Can u let me know which car was it and how old when u bought it .... bcoz at 2K per lac per month for 5 year tenure its less than the new car finance today ....

any idea if an account in SBI is needed for taking a car loan ??
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Old 21st March 2006, 17:17   #18
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Sadly this is a misnomer GTO, True used car interest rates are higher than those for new cars however the difference is not substantial incase of used car loans from SBI.
NICE, and thanks for sharing that information. Its surprising that there would not be that much of a difference since interest rate is directly proportional to risk.

SBI appears to be an exception, since everyone from HDFC to Kotak have a much higher slab for used cars.

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Old 21st March 2006, 17:21   #19
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If i have the money its always gonna be a BRAND new Car Period.
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Old 21st March 2006, 18:06   #20
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I wonder if the "flat interest rate" is something which charges the customer with more money..Any given day, I would suggest, diminishing interest for the loan for New / Used Cars

Cheers
Menon
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Old 22nd March 2006, 08:54   #21
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For me it depends on the purpose in buying the car. If it is going to be used as a means of commuting between point A and B, I would go in for a new one. However, if the purpose is to modify the car, I would go in for a sparingly used second-hand car, this way you'll have a good car and some spending money as well. I bought a 1.5 yr old Esteem and am in the process of modifying it and so far, it has worked well for me.
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Old 22nd March 2006, 10:19   #22
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Quote:
Originally Posted by namit
Hi Aditya !!

Can u let me know which car was it and how old when u bought it .... bcoz at 2K per lac per month for 5 year tenure its less than the new car finance today ....

any idea if an account in SBI is needed for taking a car loan ??
Namit, the best thing is that SBI was quoting me that emi irrespective of the type/make of used car as long as it is not older than 5 yrs ....now isn't that amazing ???

No...a/c in SBI is needed for availing in the used car loan from them..though its another matter that my dad works with SBI ( hence the lesser perception of risk what GTO mentioned about) but these were the rates on offer for ordinary customers as well....

~A
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Old 22nd March 2006, 10:21   #23
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Quote:
Originally Posted by menonrajesh
I wonder if the "flat interest rate" is something which charges the customer with more money..Any given day, I would suggest, diminishing interest for the loan for New / Used Cars

Cheers
Menon
oops my mistake...the rate quoted to me by SBI was actually a 8% diminishing interest rate on daily reducing balance....and this infact makes the deal all the more lucrative !!!

~A
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Old 22nd March 2006, 10:26   #24
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Quote:
Originally Posted by Exo
I'd recomend used, I've never had a new car in my life('snif snif') but both the corrolla's have given us almost no trouble and came with ~50K km on them.
i totally disagree with u exo...
we bought an old car which totally dissatisfied me and am cursing myself for that..
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Old 24th March 2006, 12:14   #25
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Quote:
Originally Posted by menonrajesh
I wonder if the "flat interest rate" is something which charges the customer with more money..Any given day, I would suggest, diminishing interest for the loan for New / Used Cars

Cheers
Menon
A flat interest rate is almost double the same diminishing interest rate.
For example, Flat 8% is equivalent to diminishing 15% (approx.). So beware of guys who give you flat rates. They are not FLAT bur STEEP really.

Cheers,
Rayden
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Old 24th March 2006, 12:28   #26
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Buttttttttttttttttttt you must keep in mind that the interest rates on a second hand car loan are MUCH more than on a new car. So loan seekers...beware.


its the most important factor!if you are getting the car financed,buying a new car is the best thing to do.Interest rates on a used car,are crazily high.
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Old 24th March 2006, 14:03   #27
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If you want to buy second hand car to save money be careful of the following.
* that you buy from a person you know or someone knows that it has been driven well.
* else if you go out in market they sell you car whose odometer shows 10000kms, but it might have done 50000km
* donot buy a car who average is more than 10k per annum
* if you dont know much about cars, ensure that you befriend a good mechanic and get it inspected by him before purchase.
if you dont do your homework well you might end up spending more money by buying a second hand car, defeating the very purpose of buying second hand.
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Old 24th March 2006, 15:30   #28
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We buy used cars from only one dealer and I have got good cars without hassles or trouble later after buying. We also buy new cars depending on how we are going to use them.

If you know who you are buying the car from buying used cars makes a lot of money sense.
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Old 25th March 2006, 23:58   #29
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If i were in such posn then i would have opted for a second hand car provided i get 1 which is within 1 year of manufacture & some 4K to 5k kms on odo.This helps me to save the money on accessories or i can use the saved money to get a better car , ie if i were to buy a B seg car & if i choose used cars then i will have money to buy a c seg sedan.

Well also buying a second hand car is more better considering the fact that i don have to drive cautiously during runin period.So i can start the frying process then & there on
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Old 20th April 2006, 02:19   #30
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Just an update --

As of today, ICICI quoted 18% ROI for a used car, obvioulsy I am not taking it from them. It's frustrating!!!! I think second hand car market sure must be having many buyers with black money -- good quality old cars are really overpriced - Automart India quoted me 1.85L for a used June 2004 maruti 800 with AC and wasn't willing to negotiate below 1.8L!!!

SBI has very complicated loan procedure, so usally one tends to stay away from it.

Interestingly a new maruti car delaer is only offering "Free Insuarance" if you take loan from ICICI at 13.5% but if you take it at 10% or 11% from any other financial institution, no freebies!!!!

- Manish
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