Go Back   Team-BHP > BHP India > Team-BHP Reviews > Indian Car Loans & Insurance


Reply
 
Thread Tools Search this Thread
Old 1st August 2010, 00:34   #76
BHPian
 
Join Date: Jun 2010
Location: India
Posts: 673
Thanked: 138 Times
Default

Hi Friends,

Applied and got my loan approved and disbursed through HDFC @9.5% or 2084/lac as EMI with 50% off on PF.
Thank you all for the inputs and sharing your experience and special thanks to RSteele. I am told that had the load amt was more ( I took loan of 1.75l ) they (HDFC) could have considered lowering the EMI, anyways Im ok with the offer and loan got processed and approved within flat 2 working days. Dealer also confirmed that they received the payment from bank.
AvonA7 is offline   Reply With Quote
Old 1st August 2010, 11:13   #77
Team-BHP Support
 
mobike008's Avatar
 
Join Date: Sep 2006
Location: Hyderabad
Posts: 10,746
Thanked: 7,964 Times
Default

Here is my update on my loan closure.

I was mentally prepared for a surprise as every sales fella tries one last minute gimmick to cut you a bad deal. But, he was not aware that i am also a sales guy and know these gimmicks much better than him

Last Friday, HDFC guy came home for document signatures and just when i was signing the dotted line, tells me he got approval for 2055/Lakh which is 8.88% and I immediately stopped from signing the documents and rudely told him to cancel my loan and get the hell out of my home.

Then,

He called his manager who called his manager and finally my friend tells me he hasnt got the approval and requested me to sign the documents for Rs.2055/Lakh and he will pay me the difference amount in cash.

I was firm in collecting Rs.5 X 7 X 60 months = Rs 2100.

This amount didnt matter to me but, fooling around certainly did.

So my final deal worked out to :-

Loan Amount : Rs. 7.00 Lakhs
EMI/Lakh : Rs.2050/Lakh
Tenure : 60 months
Interest Rate : 8.75%

Now that i wont be visiting this thread too often. It was fun being here and thanks to all for your comments and help.

My new car ownership can be found here :-

http://www.team-bhp.com/forum/test-d...ves-today.html
mobike008 is offline   Reply With Quote
Old 2nd August 2010, 10:54   #78
BHPian
 
RemingtonSteele's Avatar
 
Join Date: Jun 2010
Location: Pune
Posts: 569
Thanked: 168 Times
Default

Quote:
Originally Posted by AvonA7 View Post
Hi Friends,

Applied and got my loan approved and disbursed through HDFC @9.5% or 2084/lac as EMI with 50% off on PF.
Thank you all for the inputs and sharing your experience and special thanks to RSteele. I am told that had the load amt was more ( I took loan of 1.75l ) they (HDFC) could have considered lowering the EMI, anyways Im ok with the offer and loan got processed and approved within flat 2 working days. Dealer also confirmed that they received the payment from bank.
Congratulations AvonA7. Not a bad deal considering you have very small loan ammount.
Let us know more with your ownership review of new vehicle.


Quote:
Originally Posted by mobike008 View Post
So my final deal worked out to :-

Loan Amount : Rs. 7.00 Lakhs
EMI/Lakh : Rs.2050/Lakh
Tenure : 60 months
Interest Rate : 8.75%

Now that i wont be visiting this thread too often. It was fun being here and thanks to all for your comments and help.
@mobike008, you got a Very Good deal.
RemingtonSteele is offline   Reply With Quote
Old 10th August 2010, 19:39   #79
BHPian
 
Join Date: Nov 2006
Location: Bangalore
Posts: 100
Thanked: 2 Times
Default

So I have a 7.5 lacs pre-sanctioned for a car loan from HDFC. I have held accounts with them for over 10 years. I have an HDFC credit card as well, where yearly billing crosses multiple lacs. & FDs again in five figures.

Yet when I apply for a measly 3 lacs loan, I get a quote of 10% as against a supposed market rate of 10.75-11%. And a 25% discount on processing fee only after asking.

All I told the lady was please look at my credit history, and don't make me bargain. Obviously the Bank has absolutely no process to consider anything further than a token discount applicable to all customers. Bit sad that I have to waste time bargaining now...Thank you guys for this thread which is very helpful.
u_chill is offline   Reply With Quote
Old 11th August 2010, 11:41   #80
BHPian
 
RemingtonSteele's Avatar
 
Join Date: Jun 2010
Location: Pune
Posts: 569
Thanked: 168 Times
Default

Quote:
Originally Posted by u_chill View Post
Bit sad that I have to waste time bargaining now...Thank you guys for this thread which is very helpful.

We are glad that this thread helped you.
Let us know the details of what Final deal you cut through?? It will be useful for someone else who applies for HDFC Car Loan in near future.
RemingtonSteele is offline   Reply With Quote
Old 11th August 2010, 19:06   #81
BHPian
 
Join Date: Nov 2006
Location: Bangalore
Posts: 100
Thanked: 2 Times
Default

Amazingly HDFC refused to budge from their position. Area Head of Loans tells me that I am purchasing a B segment car (Alto K10). He could consider something if I was purchasing an i20! (Rationale given is that they can discount for larger cars..ridiculous imho..)

I am now seriously considering diluting those FDs and paying off the car without a loan. Any advice guys?

Last edited by u_chill : 11th August 2010 at 19:07.
u_chill is offline   Reply With Quote
Old 11th August 2010, 20:35   #82
Senior - BHPian
 
spadix's Avatar
 
Join Date: Oct 2007
Location: Gurgaon
Posts: 1,018
Thanked: 185 Times
Default

Quote:
Originally Posted by u_chill View Post
Amazingly HDFC refused to budge from their position. Area Head of Loans tells me that I am purchasing a B segment car (Alto K10). He could consider something if I was purchasing an i20! (Rationale given is that they can discount for larger cars..ridiculous imho..)
That is standard across all banks and I've heard it from the HDFC branch who processed my loan as well. You weren't short-changed by any means.

Quote:
Originally Posted by u_chill View Post
I am now seriously considering diluting those FDs and paying off the car without a loan. Any advice guys?
That's a good idea. FDs don't give much post-tax and if the choice is between FD + interest payout car loan vs. cash-down, opt for the latter assuming you have enough reserves (which you should if you're able to run up multiple lacs per year on the CCs; no offence meant ).

In general, think of it as the quantum of interest earned by the bank. On cars that require huge loans, the absolute quantum of interest is high even with lower rates of interest. That's why they charge higher rates of interest on lower principals, so that they can still make a size-able amount of absolute, cold, hard cash.

Regards,
spadix
spadix is offline   Reply With Quote
Old 12th August 2010, 15:59   #83
BHPian
 
Join Date: Nov 2006
Location: Bangalore
Posts: 100
Thanked: 2 Times
Default

Thanks Spadix, good advice indeed. I understand having a different slab based on car model makes some random sense (i20 buyer will be more credit-worthy than Alto buyer logic might be applicable), but my question to the Loans Manager was "Don't they have a different slab for long-term customers like me?"

Got a quote today from State Bank of Travancore down the road. The Bank Manager was very friendly and helpful. What's more the State Banks have a standard scheme of 8% fixed for first year and 10% thereafter. Low processing charges as well, though they will force a SBI life insurance down your throat. Works well in my case, but tons of paperwork to complete since I don't have an account with them. Whats more, the Bank Manager would actually have to verify my residence by paying a personal visit!

OT, I run multiple lacs on the one cc I own by taking advantage of the 45 day billing cycle. In other words, I use the card for most daily expenses, and always pay online couple of days before the due date. Since I haven't missed a payment in all these years, at least managed to shortchange HDFC there

Last edited by u_chill : 12th August 2010 at 16:02.
u_chill is offline   Reply With Quote
Old 12th August 2010, 16:05   #84
BHPian
 
RemingtonSteele's Avatar
 
Join Date: Jun 2010
Location: Pune
Posts: 569
Thanked: 168 Times
Default

Quote:
Originally Posted by u_chill View Post
I am now seriously considering diluting those FDs and paying off the car without a loan. Any advice guys?
I would suggest, instead of diluting your FD's why don't you opt for Overdraft on those FD's and finance the vehicle. With this you will have your FD intact, you will only need to pay the differential interest + the OD ammount borrowed with all the repayment flexibility.
RemingtonSteele is offline   Reply With Quote
Old 13th August 2010, 14:32   #85
Senior - BHPian
 
spadix's Avatar
 
Join Date: Oct 2007
Location: Gurgaon
Posts: 1,018
Thanked: 185 Times
Default

Quote:
Originally Posted by u_chill View Post
applicable), but my question to the Loans Manager was "Don't they have a different slab for long-term customers like me?"
They do, but even that's just a shift down from the standard rates, which means smaller cars and smaller loans still attract higher interest, than larger cars/loans at the same relationship level.

Quote:
Originally Posted by u_chill View Post
What's more the State Banks have a standard scheme of 8% fixed for first year and 10% thereafter. Low processing charges as well, though they will force a SBI life insurance down your throat.
My sage advice is not to go for this ballooning scheme. A 15 min effort at Excel should convince you. Otherwise, I like the idea of dealing with a nationalized bank.

Quote:
Originally Posted by u_chill View Post
OT, I run multiple lacs on the one cc I own by taking advantage of the 45 day billing cycle. In other words, I use the card for most daily expenses, and always pay online couple of days before the due date. Since I haven't missed a payment in all these years, at least managed to shortchange HDFC there
Same here, but I struggle to run up multiple lacs in any *one* biling cycle. After all, those have to be paid off at the end of that 45-day period, right?

Anyway, I agree this is OT.

Quote:
Originally Posted by RemingtonSteele View Post
I would suggest, instead of diluting your FD's why don't you opt for Overdraft on those FD's and finance the vehicle. With this you will have your FD intact, you will only need to pay the differential interest + the OD ammount borrowed with all the repayment flexibility.
This seems like a good option. I don't do FDs at all and so don't understand the technicalities of an overdraft, but if the alternate is to not invest anywhere else at all and there's no real need for liquidity immediately, then this definitely seems like a good option. Plus, you might get cheaper rates also.

Regards,
spadix
spadix is offline   Reply With Quote
Old 24th August 2010, 17:03   #86
Newbie
 
Join Date: Aug 2010
Location: Bangalore
Posts: 16
Thanked: 0 Times
Default

I got the below deal from HDFC Bank - Coimbatore.

Loan Amount : Rs. 3.00 Lakhs
EMI for 3 Lakhs : Rs. 9700 (3233.33 /Lakh)
Tenure : 36 months
Interest Rate : 10.75%
Processing fees : 3250

I tried a lot to reduce the interest rate, but HDFC Coimbatore sales guy is saying it can't be done. When I asked ICICI for a quote in bangalore they said it is 10.5 %.

Sales guys in Coimbatore (a tier II city in tamilnadu) are saying that loan interest rates will vary from cities and in metros and it is 0.5 % lesser in metros. He also added that 3 days back the interest rates moved northward and the rate he is quoting is based on old interest rate only and he will finish the deal with that rate itself.

I didn't see any other better deal other than this so I am planning to go for this. Does anybody have any idea whether this a fair deal or I am paying extra?

Sigamani
Sigamani is offline   Reply With Quote
Old 24th August 2010, 17:31   #87
Team-BHP Support
 
mobike008's Avatar
 
Join Date: Sep 2006
Location: Hyderabad
Posts: 10,746
Thanked: 7,964 Times
Default

Quote:
Originally Posted by Sigamani View Post
I got the below deal from HDFC Bank - Coimbatore.

Loan Amount : Rs. 3.00 Lakhs
EMI for 3 Lakhs : Rs. 9700 (3233.33 /Lakh)
Tenure : 36 months
Interest Rate : 10.75%
Processing fees : 3250

I tried a lot to reduce the interest rate, but HDFC Coimbatore sales guy is saying it can't be done. When I asked ICICI for a quote in bangalore they said it is 10.5 %.

Sales guys in Coimbatore (a tier II city in tamilnadu) are saying that loan interest rates will vary from cities and in metros and it is 0.5 % lesser in metros. He also added that 3 days back the interest rates moved northward and the rate he is quoting is based on old interest rate only and he will finish the deal with that rate itself.

I didn't see any other better deal other than this so I am planning to go for this. Does anybody have any idea whether this a fair deal or I am paying extra?

Sigamani
It is definetly higher than what me and Spadix paid ( 8.75%).Criterias like these will influence the rate

1. Relationship with bank
2. Loan Amount ( Lesser the amount, higher the interest)
3. Tier 1 or Tier 2, 3 city
4. Finally, the most important aspect. Your negotiation skills

Now that its done. Just relax and enjoy the EMI
mobike008 is offline   Reply With Quote
Old 24th August 2010, 22:57   #88
Newbie
 
Join Date: Aug 2010
Location: Bangalore
Posts: 16
Thanked: 0 Times
Default

Quote:
Originally Posted by mobike008 View Post
It is definetly higher than what me and Spadix paid ( 8.75%).Criterias like these will influence the rate

1. Relationship with bank
2. Loan Amount ( Lesser the amount, higher the interest)
3. Tier 1 or Tier 2, 3 city
4. Finally, the most important aspect. Your negotiation skills

Now that its done. Just relax and enjoy the EMI
Thanks for your reply mobike008. I understand your points. As of now i am keeping my fingers crossed on the approval and lets see what happens. This being a month end will they come down a bit if I am bit hard on getting a lower one. Lets see how the time pans out.
Sigamani is offline   Reply With Quote
Old 25th August 2010, 20:59   #89
GTO
Team-BHP Support
 
GTO's Avatar
 
Join Date: Feb 2004
Location: Bombay
Posts: 47,758
Thanked: 89,465 Times
Default

Quote:
Originally Posted by spadix View Post
This seems like a good option. I don't do FDs at all and so don't understand the technicalities of an overdraft, but if the alternate is to not invest anywhere else at all and there's no real need for liquidity immediately, then this definitely seems like a good option. Plus, you might get cheaper rates also.
It's actually the best option. Banks will let you get away with 1% over and above what your FD is earning. No hypothecation on the RC book, no signing of 1,000 car loan papers and approval on the same day. Completely flexible repayment options...pay as per your convenience.

Thread on taking car loans against Fixed Deposits (Car Loan against Fixed Deposits)
GTO is offline   Reply With Quote
Old 28th August 2010, 11:15   #90
BHPian
 
rki2007's Avatar
 
Join Date: Nov 2009
Location: Bangalore
Posts: 664
Thanked: 138 Times
Default

I had taken qoutes from all the dealers of Tata Motors for Manza. No dealer is ready to give the loan rate less than 10.25%. I don't know how other car owners get 8.75% or 9.5%. Can anyone please expalin on this. Or should i try out self for a car loan by approaching the bank directly rather than going through a dealer.
rki2007 is offline   Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
The Cheap Loan or the Smart Loan - SBI Advantage Car Loan keyur Indian Car Loans & Insurance 208 5th July 2017 15:56
HDFC Bank Car Loan- Is this a good finance deal ? manumani Indian Car Loans & Insurance 7 22nd July 2010 21:03
HDFC Bank Car Loan Formalities sandipwadje Indian Car Loans & Insurance 4 15th October 2008 19:48
Is this a good deal - HDFC 11.5% 3yrs iTNerd Indian Car Loans & Insurance 16 9th July 2007 17:06
My experience with HDFC Finance (Auto Loan) VtecDeGr8 Indian Car Loans & Insurance 16 25th January 2006 03:41


All times are GMT +5.5. The time now is 03:30.

Copyright 2000 - 2017, Team-BHP.com
Proudly powered by E2E Networks