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Old 15th July 2010, 15:54   #61
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Thanks Remington. I booked Polo, awaiting delivery.
I have PMed you. I`ll check with him and lets see how it turns out.
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Old 16th July 2010, 18:29   #62
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Remingtonsteele : You got a nice deal. I keep on getting calls informing me that I am a preferred customer and have preapproved loan, but couldn`t got the confirmation of 2070/lac and 50% waive off on processing fee (got 2085/- per lac with an assurance once I apply they can try something).
Exactly what I keep getting told, down to the last detail (please see my last post)!

@Kiyon: The guy took you for a ride. Even with a pre-approved loan all banks will conduct a background check which includes getting your credit report from CIBIL. That itself takes around a week or so (I've indepedently applied for mine a few days back and still haven't received it).

And you're right about them coming by with blank papers and asking you to sign them up. He tried to pull that stunt on me but I sent him back without signing anything .

Anyway, I hope in your case that there are no nasty surprises in the future and this is the last bad experience you have with them.

Regards,
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Old 19th July 2010, 17:12   #63
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Originally Posted by Kiyon View Post
** Funny part is all details are assumed based on the security cheques i have paid and on the dealers word about the amount they received from the bank. HDFC has not so far sent any document/email or even a message stating that they have given me loan even after one month !!! Hope they forget about it !! :-)
After seeing your predicament, I asked my PB to send me an email confirming the offer and that rate of interest ( EMI/Lakh) is fixed in nature for entire period of loan.

I should be getting that email in a couple of days.

Plan to get my loan disbursed to dealer by July 22nd or so and will take delivery of vehicle by July 31st.
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Old 20th July 2010, 21:26   #64
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An update -
Called the person, thanks to @Remingtonsteele, though the intended guy couldn`t manage to speak (was busy in a meeting, as was told). Next day got a call from another person, referring his name and the final deal (confirmed over phone) is 9.5% fixed for 5years and 50% off on processing fees .
Awaiting dealers call about the EDD of my car, once the loan is finalized and shall inform you all.
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Old 21st July 2010, 11:42   #65
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Originally Posted by AvonA7 View Post
An update -
Called the person, thanks to @Remingtonsteele, though the intended guy couldn`t manage to speak (was busy in a meeting, as was told). Next day got a call from another person, referring his name and the final deal (confirmed over phone) is 9.5% fixed for 5years and 50% off on processing fees .
Awaiting dealers call about the EDD of my car, once the loan is finalized and shall inform you all.
@AvonA7, with 9.5% whats your EMI (I think it should be 2100/lac right???). If yes, then I would suggest don't negotiate on % anymore, just continue with EMI/Lac. I think you can try and reach the reasonable target of atleast 2070-2075 /lac; if you manage more then its more than welcome. Don't succumb to the lure of getting the new vehicle delivery earlier that won't allow you to cut the finance deal, bear with it for some more days if possible.

Keep the carrot dangling and as I said earlier drag them beyond 25th-27th of the month; they will negotiate being desparate to reach target. Try to speak to the person I mentioned he will try to cut the final deal for you.

Good Luck!!
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Old 21st July 2010, 14:17   #66
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I just got a call again from HDFC and they're refusing to budge from 2085/lac (5 years) and 100% processing fees.

I'm being told that if I can confirm the loan they'll see what they can do on a "best efforts" basis. Whoa! I thought the world works the other way around!
After pitting banks against banks and branches against branches, here's what I finally have -

HDFC Branch 1 (the one I started off with): 2049/lac, 50% processing fee waiver (i.e. processing fees of 1825)

HDFC Branch 2: 2061/lac, 50% processing fee waiver

Note that the regular rates for non-account holders and non-PB customers are around 2085/lac and 100% processing fees.

Axis bank: 2049/lac and 4500 INR processing fees (will be waived off if I switch to Axis from HDFC as a salaried a/c holder) - this was their first offer

Kotak: 2055/lac and 5650 INR (brought down to 3650 by the dealer) - the initial offer was 2086/lac

I think I'll just stick with HDFC 1 now.

Thanks a lot for everyone who shared their info in this thread. It provided me enough data points for negotiating well.

My advice/suggestion to others hunting for loans -
1. Always negotiate with a copy of the written offer from another bank. Just saying "but XYZ bank offers a lower rate" won't help. The moment I flashed Axis' offer in front of HDFC and Kotak, it didn't take them more than a day or two to bring their quotes down.
2. Contacts help. If you personally (or through close friends) know bank managers, approach them for the best initial quotes. You will still need to negotiate, but the initial offer will be substantially lower (think 2060-2070 vs. 2085). And be very polite, professional and courteous to your contacts (and contacts' contacts). Remember that they're doing you a huge favour.

Regards,
spadix
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Old 21st July 2010, 14:26   #67
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After pitting banks against banks and branches against branches, here's what I finally have -

HDFC Branch 1 (the one I started off with): 2049/lac, 50% processing fee waiver (i.e. processing fees of 1825)

I think I'll just stick with HDFC 1 now.
@Spadix, you have cut a fantastic deal, Congratulations!!!
BTW if you don't mind could you reveal how much loan you opting for?? In my opinion it depends a lot on the loan ammount. 5-10 lacs is what they target, beyond that amount they charge premium and 1-3 lacs they don't care much.

@AvonA7 you can target 2049/lac + 50% off on proc. fees.
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Old 21st July 2010, 14:26   #68
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@AvonA7, with 9.5% whats your EMI (I think it should be 2100/lac right???). If yes, then I would suggest don't negotiate on % anymore, just continue with EMI/Lac. I think you can try and reach the reasonable target of atleast 2070-2075 /lac; if you manage more then its more than welcome. Don't succumb to the lure of getting the new vehicle delivery earlier that won't allow you to cut the finance deal, bear with it for some more days if possible.

Keep the carrot dangling and as I said earlier drag them beyond 25th-27th of the month; they will negotiate being desparate to reach target. Try to speak to the person I mentioned he will try to cut the final deal for you.

Good Luck!!
EMI per lac is 2084/-. Vehicle delivery No Idea, most probably by 10th Aug`10, but no confirmation yet, so if in early Aug, then its not a good time to negotiate, lol.
Yes, I`ll try and push for a little bit less EMI / lac, but I was told that since am applying for only 1.75-2 so..., if the loan amount is a bit more they can reduce the EMI too. Lets see what happens finally.
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Old 22nd July 2010, 13:25   #69
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Guys, need an urgent clarification as my deal with HDFC bank got finalized.

Loan Amount : 7 Lakhs
EMI/Lakh : Rs.2050
Interest Rate: 8.75% fixed
Tenure : 60 months
Processing Fee (0.5% of loan amount) : 50% off
Stamp Duty : 0.5% of loan amount

These bank fellas have a nice way of springing surprises just a wee bit before the disbursement.

My queries :-

1. I was told that amount disbursed to dealership would be 7 lakhs-1 EMI amount. Which means EMI's left to pay would be 59. I was not prepared for this addition ~15K payment from my pocket

2. Its seems 0.5% of loan ( Rs.3500+Rs.100) amount towards stamp duty is mandatory and cannot be waived off. Is this true???

3. I am getting an offer from HDFC bank for Rs.23000 for Insurance as the best price for a vehicle with ex-showroom Rs.11,59,000. Is this a good offer? Has someone got a better deal?

Good News : Since disbursement is happening after 20th of the month. My first EMI starts from Sep'10. This is good

I am signing the dotted line tomorrow morning. Need some quick inputs.

TIA !!
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Old 22nd July 2010, 14:03   #70
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Originally Posted by mobike008 View Post
Guys, need an urgent clarification as my deal with HDFC bank got finalized.

Loan Amount : 7 Lakhs
EMI/Lakh : Rs.2050
Interest Rate: 8.75% fixed
Tenure : 60 months
Processing Fee (0.5% of loan amount) : 50% off
Stamp Duty : 0.5% of loan amount

These bank fellas have a nice way of springing surprises just a wee bit before the disbursement.

My queries :-

1. I was told that amount disbursed to dealership would be 7 lakhs-1 EMI amount. Which means EMI's left to pay would be 59. I was not prepared for this addition ~15K payment from my pocket

2. Its seems 0.5% of loan ( Rs.3500+Rs.100) amount towards stamp duty is mandatory and cannot be waived off. Is this true???

3. I am getting an offer from HDFC bank for Rs.23000 for Insurance as the best price for a vehicle with ex-showroom Rs.11,59,000. Is this a good offer? Has someone got a better deal?

Good News : Since disbursement is happening after 20th of the month. My first EMI starts from Sep'10. This is good

I am signing the dotted line tomorrow morning. Need some quick inputs.

TIA !!
Its a Good deal!!!
Answer for #1: This normal; thats the way this loan operates.

Answer for #2: Stamp duty is compulsory and that cannot be waived off.
The processing fee is 3650/- (you get 50% off on that i.e. 1825/-)

Answer for #3: For insurance if you do the insurance from outside showroom its always cheaper. There are many factors to consider in this such as:
a) What is the Zero depreciation insurance cost??
b) Is cashless facility for this outside insurance available at showroom ??
c) Does that promise you cashless facilty all over India such as Honda Assure.

Answer for "Good News": Thats again normal with HDFC car loans, but still I am Happy for you .
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Old 22nd July 2010, 14:27   #71
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@mobike008
First and foremost input would be don't sign on any blank document either it is processing fee document/ stamp duty or the loan agreement.. Ask them to fill it completely with the details negotiated with you... (I know for sure they are gonna come with blank ones)

Quote:
1. I was told that amount disbursed to dealership would be 7 lakhs-1 EMI amount. Which means EMI's left to pay would be 59. I was not prepared for this addition ~15K payment from my pocket
There are two options when applying for loan 1)EMI in Arrears or 2)EMI in Advance
you have opted for EMI in advance .. so your first EMI will be deducted... If you opt for EMI in Arrears then EMI (in your case) will increase roughly buy Rs 100 per month and will be deducted later.. I feel better to opt for advance

Since your loan falls in > 4 range processing fee would be 3500/2 with 50% off ( I am not sure if they have revised the tariff)

Quote:
Its seems 0.5% of loan ( Rs.3500+Rs.100) amount towards stamp duty is mandatory and cannot be waived off. Is this true???
I never thought it can be so high!! well i have to go home and check what was charged for me..(forgotten the numbers).. I assumed its some where around 600-1K on 4 lakh loan for me..

Quote:
I am getting an offer from HDFC bank for Rs.23000 for Insurance as the best price for a vehicle with ex-showroom Rs.11,59,000. Is this a good offer? Has someone got a better deal?
I had reviewed the HDFC ergo car insurance , its nothing more to talk about.. for me the quote was very high also.. First check out with other guys like Bajaj Allianz. TATA AIG they have online insurance quote generators..
Check HDFC ergo's site for tie up of your dealer to get cashless facility..

Last edited by Kiyon : 22nd July 2010 at 14:29.
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Old 22nd July 2010, 15:09   #72
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@Kiyon and Remintonsteele.

Thanks for your responses.

I bought 2 cars in < 4 years. One bought with own money ~ 4 years ago, so dont remember the details clearly.

2nd car bought in Nov, 2008 but, my company paid for it. So was not sure if stamp duty is part of this game or not.

Seeing your posts, now i deciphered that stamp duty is mandatory but, 0.5% of loan amount is "not". I think will try to squeeze him for 0.25% of loan amount as stamp duty.

Lets see if it works or not.
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Old 22nd July 2010, 15:29   #73
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@Kiyon and Remintonsteele.

Thanks for your responses.

I bought 2 cars in < 4 years. One bought with own money ~ 4 years ago, so dont remember the details clearly.

2nd car bought in Nov, 2008 but, my company paid for it. So was not sure if stamp duty is part of this game or not.

Seeing your posts, now i deciphered that stamp duty is mandatory but, 0.5% of loan amount is "not". I think will try to squeeze him for 0.25% of loan amount as stamp duty.

Lets see if it works or not.
I think the stamp duty is standard i.e. 0.5% of loan ammount, no lender negotiates this (I may be wrong). I don't think you can negotiate this; but nevertheless give it a try.
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Old 22nd July 2010, 16:10   #74
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I am signing the dotted line tomorrow morning. Need some quick inputs.

TIA !!
Congratulations on buying a new car and you got a good deal on your loan.

Is the bank asking you to sign various RTO forms (transfer of ownership, selling the car, surrendering the car etc.) in blank? Also, are they asking you to sign the surrender form which states that I have defaulted on loan and hence I am surrendering the car?

Just curious to know what is your experience on this front. Are you OK to sign on these blank forms or have you tried to refuse signing these and if so, what did they say?

I have seen a few posts where people have expressed worries about signing these forms and some others who said it is routine and it is OK to sign these. Just wanted to know what is the latest on this front and what is the current practice.

Thanks,
-AD
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Old 22nd July 2010, 19:33   #75
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@Spadix, you have cut a fantastic deal, Congratulations!!!
Thank you, RemingtonSteele! Yeah it took some effort but I'm happy it paid off in the end. Of course I'm yet to read the fine print and sign on the dotted line.

Quote:
Originally Posted by RemingtonSteele
BTW if you don't mind could you reveal how much loan you opting for?? In my opinion it depends a lot on the loan ammount. 5-10 lacs is what they target, beyond that amount they charge premium and 1-3 lacs they don't care much.
Indeed. I'm looking at a C+ (earlier - D) segment car with a loan amount of 10 lac INR. EMI/lac varies inversely with size of car (lower segment car means higher EMI/lac) and with amount of loan (lower loan amount means higher EMI/lac).

@mobike008:
I think stamp duty is non-negotiable. Please correct me if I'm wrong. The only thing that one can negotiate on in addition to EMI/lac and processing fees is pre-payment penalty. However, HDFC is better than most other private banks in this regard, although they are also somewhat inflexible. Kotak and Axis for instance have a flat 5% penalty (on outstanding principal) on pre-payment but not only are they willing to reconsider this number based on your payment history, but in the case of Axis, even part repayments are allowed which I think is really very convenient.

By the way, it seems that my message earlier on this thread wishing both of us luck seems to have worked out .

Regards,
spadix
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