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Old 28th August 2010, 14:48   #91
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Surprised to see such high interest rates over here. We got our Laura (took 11 lakhs loan) at 8.5% for 3 years from HDFC Bank last week. No negotiation required.. Even got a good discount on processing fees due to having accounts with them.

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Old 28th August 2010, 15:38   #92
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I updated the above Car loan against FD thread with some calculations w.r.t the current situation/offers. http://www.team-bhp.com/forum/indian...ml#post2046178 (Car Loan against Fixed Deposits)

@MaxX: Do you have a large and premium relationship with the bank? I've seen those rates offered only in such cases. Current base interest rates are around 10-10.5%. They are likely to increase.
Only SBI Ezee/Advantage car loan has interest rate of 8%, 10%, 10%, 11.5%. 11.5% fixed for 5 years, offer valid upto Sept/30th 2010.

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Old 28th August 2010, 16:05   #93
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Originally Posted by echo77 View Post

@MaxX: Do you have a large and premium relationship with the bank? I've seen those rates offered only in such cases. Current base interest rates are around 10-10.5%. They are likely to increase.
Only SBI Ezee/Advantage car loan has interest rate of 8%, 10%, 10%, 11.5%. 11.5% fixed for 5 years, offer valid upto Sept/30th 2010.
While we got discount on processing fee due to premium relationship, but these rates are applicable for everyone.. as even the skoda dealer was quoting similar rates. 8.5% for 3 years and 8.75% for 5 years.
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Old 28th August 2010, 16:53   #94
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Originally Posted by MaxX View Post
While we got discount on processing fee due to premium relationship, but these rates are applicable for everyone.. as even the skoda dealer was quoting similar rates. 8.5% for 3 years and 8.75% for 5 years.
That is strange... what is your EMI per lakh?
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Old 28th August 2010, 23:28   #95
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Originally Posted by rki2007 View Post
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.
Dealers always quoting 1.5 to 2 % higher than the normal rates.. Recently for Xylo i got a quote of 11.5 to 11.75% from the dealer.. But i have directly approached the bank and got it approved for 9.5%.
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Old 29th August 2010, 08:53   #96
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I have have also planned directly to approach the bank people only for a loan. The dealers just try to loot you if you are ignorant.When a customer comes to know things then their way of approaching and talking is itself different.

Last edited by rki2007 : 29th August 2010 at 08:54. Reason: spelling mistakes
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Old 29th August 2010, 10:20   #97
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Originally Posted by echo77 View Post
That is strange... what is your EMI per lakh?
Don't remember now, but the rate of 8.5% for 3 years has been applied correctly. We got it done from the bank directly. Even on the previous page here a cruze was bought at 8.75% interest for 5 years (we were also quoted 8.75% for 5 years). I guess lower value cars/loans have higher interest rate. Nothing "strange" about it..

Last edited by MaxX : 29th August 2010 at 10:28.
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Old 31st August 2010, 20:16   #98
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I finally got my car last week with a full cheque payment, thanks to a series of bunglings by HDFC on the "pre-approved" car loan. I do not hold a major grudge against them, since they were the best deal available for a small car at 10%, and 50% discount on processing fee. However they took over a week when my k10 was already with the dealership awaiting delivery. Here's what happened over a Thursday:

I finally sign the loan agreement with HDFC on Thursday morning after a week long wait and vague verification calls from unknown numbers. They are expected to hand over the form 20 to the dealership on the same morning. In the afternoon I get a call from the dealership telling me that my car has been ready for delivery for over a week now, and in case I cannot assure the payment in a day, they will allot the car to the next person on the now 2 month long waiting list for the k10. The Bank has not gotten in touch with them.

I shoot a mail to the Bank asking them to complete the transaction in next 2 hours, failing which I would like to cancel my loan application. True to style, I get a call from a clueless officer from the Bank after 2 hours inquiring of yet another procedural issue...he wanted to know if I can issue my cheque from another HDFC account that I hold, since the pre-approved loan is linked to that account. On hearing this, I ask them to cancel my loan application, and please hand over all signed cheques and docs within 24 hours.

All hell breaks lose, I get calls from some so called regional managers. Again I politely explain the situation, and ask that the loan application be canceled (by now I have also used the super efficient HDFC online banking facility to move funds from FD to savings). A lot of "sorry for the inconveniences" later, the regional manager realizes I am not going to budge, and states that he will cancel the application.

Within 30 mins the head of my dealership gets a call from the same regional manager stating that I have asked to proceed with the loan! More magic ensures that my application went from still vague to sanctioned in 10 minutes flat!

I stick to my guns, and ask the dealership to not entertain HDFC, made the payment and got my car the very next day. Phew! I rest my case
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Old 1st September 2010, 12:00   #99
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Quote:
Originally Posted by u_chill View Post
I finally got my car last week with a full cheque payment, thanks to a series of bunglings by HDFC on the "pre-approved" car loan.

All hell breaks lose, I get calls from some so called regional managers. Again I politely explain the situation, and ask that the loan application be canceled (by now I have also used the super efficient HDFC online banking facility to move funds from FD to savings).

I stick to my guns, and ask the dealership to not entertain HDFC, made the payment and got my car the very next day. Phew! I rest my case
Congrats for the New Car Purchase.
But I still think opting for Over Draft over those FD's would have been the best option for you instead of liquidating those FD's.
Anyway, enjoy your new car and drive safely.
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Old 2nd September 2010, 16:33   #100
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Congrats for the New Car Purchase.
But I still think opting for Over Draft over those FD's would have been the best option for you instead of liquidating those FD's.
Anyway, enjoy your new car and drive safely.
Thanks. Safety always comes first.

I chose to go all cheque for some specific reasons. However for the benefit of others on this thread, I also concur that the overdraft facility on FDs, or loan against asset such as gold or shares is a better option to finance a depreciating asset like a car. You may save just couple of percentage points, however also remember that there would be no long drawn verification process involved.
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Old 2nd September 2010, 16:51   #101
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Quote:
Originally Posted by MaxX View Post
Don't remember now, but the rate of 8.5% for 3 years has been applied correctly. We got it done from the bank directly. Even on the previous page here a cruze was bought at 8.75% interest for 5 years (we were also quoted 8.75% for 5 years). I guess lower value cars/loans have higher interest rate. Nothing "strange" about it..
You must be referring to me as the Cruze buyer who got 8.75%.

It was not easy to get this rate. Had to haggle with them a bit and ward of their last minute fixes to squeeze more money out of me etc.

Update as on today, car loan interest rates have become dearer by almost 0.75 basis points.
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