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Old 25th September 2011, 17:57   #1
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Default Fluence @ Rs 14,999 PM? Joke!

I guessed it all along! Hence I don't really mind the truth!
As we were driving to Yelahanka, we passed by the Renault showroom at Sadashivnagar.
I immediately got my dad to take the next U-turn, and told him I'd heard about some 15k pm emi on the Fluence. I did tell him to not to have high expectations in mind, knowing what the price of the car is, and, perhaps, expect the loan term to be 84 months (7 years), but just check if the offer would matter to us (I hoped there would be a lower interest rate or something).
We walked in and told the courteous young gentlemen there that we proposed to buy a new Linea Diesel, but heard of the 15k/pm emi scheme, and that we could be interested in the Fluence if the scheme made sense for us.
He tells us the emi scheme is on the yearly incrementing basis, and showed us a piece of paper and surprise! 14,999 pm only for the 1st year! 19,999 for the 2nd year, hmm, we could digest that, but it went on,..... until 30,499 for the 5th
Grinned and walked out of the showroom.

Not that I really care (we need a more compact car, like say, the Linea / Punto anyway), just posting to let fellow members and others reading this to ignore this "offer" that makes little sense, and not waste one's time on it.
PS: Just calculated; for a fixed emi, it comes to 23.7k pm @ 11% pa.

Last edited by v12 : 25th September 2011 at 18:54. Reason: Extra smiley removed.
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Old 25th September 2011, 19:46   #2
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Default Re: Fluence @ Rs 14,999 PM? Joke!

I guess the idea here is to lure those who can afford a 15k EMI today and perhaps pay more in the coming years (owing to career growth, higher salary, better business revenues etc), and still enjoy a BIG car today :-)
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Old 25th September 2011, 21:12   #3
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Default Re: Fluence @ Rs 14,999 PM? Joke!

Nothing new. A very common practice in housing loans wherein the EMI increases gradually. Quite practical and useful to a section of customers who hope for a steady increase in their earnings

11% (diminishing) over the tenure is a very good deal.
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Old 25th September 2011, 22:17   #4
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Default Re: Fluence @ Rs 14,999 PM? Joke!

This is common in auto loans. In 2001 there was a zero-interest scheme for M800 from some dealers; the catch is, it was for a less than an year tenure for one lakh. Further there was no freebies and the whole stuff was to finish off stocks of old carburetor version.
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Old 25th September 2011, 23:13   #5
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Default Re: Fluence @ Rs 14,999 PM? Joke!

Well this EMI scheme is quite common. Most companies also offer the balloon payment, wherein every 6th or 12th EMI is a large one, almost 3 to 6 times the normal EMI.
Audi and Merc were offering a 0% EMI Scheme as well. But thats usually on cars that have a big discount on them. The Manufacturer passes on the discount factor to the Lending Agency who in turn give your a ZERO Percent Interest Loan.
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Old 26th September 2011, 00:30   #6
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Quote:
Originally Posted by raju2512 View Post
Nothing new. A very common practice in housing loans wherein the EMI increases gradually. Quite practical and useful to a section of customers who hope for a steady increase in their earnings

11% (diminishing) over the tenure is a very good deal.
Not any more. This scheme used to be a very famous but short lived one a couple of years ago. They have long discontinued this for home loans as well. It was scheme that I personally liked a lot.

Quote:
Originally Posted by mohandasnikhil View Post
Well this EMI scheme is quite common. Most companies also offer the balloon payment, wherein every 6th or 12th EMI is a large one, almost 3 to 6 times the normal EMI.
Audi and Merc were offering a 0% EMI Scheme as well. But thats usually on cars that have a big discount on them. The Manufacturer passes on the discount factor to the Lending Agency who in turn give your a ZERO Percent Interest Loan.

Hey. This is news to me. Can you educate me on this one? I think only 'holy trinity' companies offer this scheme. Eight? I may be interested in such a scheme if it is offered for companies like Honda and VW, which is more like the companies that I can afford.


NOTE: MODS, I wasn't able to edit my previous post for some funny reason.

Last edited by GTO : 27th September 2011 at 14:17. Reason: Please use the EDIT or MULTI-QUOTE buttons instead of typing one post after another!
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Old 26th September 2011, 09:33   #7
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Default Re: Fluence @ Rs 14,999 PM? Joke!

Quote:
Originally Posted by Abhi_Automobile View Post
Hey. This is news to me. Can you educate me on this one? I think only 'holy trinity' companies offer this scheme. Eight? I may be interested in such a scheme if it is offered for companies like Honda and VW, which is more like the companies that I can afford.
Well as for as I know Lending Agencies are only offering these schemes on Merc and Audi right now. With MB they had given me the option of the last EMI being nearly 1/6th the value of the total loan, which is slightly less than the Residual Value of the Car after the loan period. If you calculate the entire interest it is more than what the normal scheme offers you.
I had a friend who bought a Honda Civic a couple of years ago on a "step down scheme:, where the EMI keeps reducing every year.
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Old 26th September 2011, 10:45   #8
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Default Re: Fluence @ Rs 14,999 PM? Joke!

Mitsubishi Outlander is also being offered in a similar EMI plan - Rs 14,999 pm for 1st year, Rs 24,999 pm for 2nd year and so an increase of Rs 10,000 per year. So in 5th year you pay Rs 54,999 pm.

I too fell for the newspaper advert and TD'ed the car. After hearing the EMI scheme, I ran away :-)
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Old 26th September 2011, 11:16   #9
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Default Re: Fluence @ Rs 14,999 PM? Joke!

Quote:
Originally Posted by nishantgandhi View Post
Mitsubishi Outlander is also being offered in a similar EMI plan - Rs 14,999 pm for 1st year, Rs 24,999 pm for 2nd year and so an increase of Rs 10,000 per year. So in 5th year you pay Rs 54,999 pm.

I too fell for the newspaper advert and TD'ed the car. After hearing the EMI scheme, I ran away :-)
There was another one on the Outlander where in you pay a huge sum upfront to get either a 0% interest loan or a low interest loan. Called them up to check out and dropped the idea as it turned out that i need to shell close to 12L as a upfront payment to avail this low interest scheme.
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Old 26th September 2011, 11:27   #10
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Default Re: Fluence @ Rs 14,999 PM? Joke!

Absolutely , very convenient though , i undertook such a scheme to purchase by first car 6 years back just after i got my 1st job , might not have been able to pick up the Wagon R if it was not for this....

.... and to my good fortune , fortunately my salary increments were higher than the EMI increments , so all good!

Quote:
Originally Posted by raju2512 View Post
Nothing new. A very common practice in housing loans wherein the EMI increases gradually. Quite practical and useful to a section of customers who hope for a steady increase in their earnings

11% (diminishing) over the tenure is a very good deal.
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Old 26th September 2011, 14:58   #11
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Default Re: Fluence @ Rs 14,999 PM? Joke!

Quote:
Originally Posted by mayankjha1806 View Post
There was another one on the Outlander where in you pay a huge sum upfront to get either a 0% interest loan or a low interest loan.
Exactly. AFAIK the target of this plan was those who opt for an auto loan only to evade the tax radar and those who buy a car with finance and settle the loan after 6 or more months.
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Old 26th September 2011, 15:52   #12
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Default Re: Fluence @ Rs 14,999 PM? Joke!

EMI stands for Equated Monthly Instalment. In this case the equalisation seems to be happening for a given year. I guess it's fair enough but they should not be allowed to call it an EMI!
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