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Old 18th February 2012, 20:35   #16
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Default Re: The BMW X1 at Rs.15,999 EMI (limited time offer)

Such offers i.e. 15,999 per month really misguide newbies who admire luxury cars and have just started working or are in initial years of their job. For example If I am earning 40,000 per month than in no case I can pay 16,000 monthly EMI and almost equal amount on it's maintenance/running etc. charges. There are many examples of such attractive advertisement ranging from cars to homes.


And yes sometimes such offers can land Government officials in trouble

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Old 18th February 2012, 21:00   #17
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Default Re: The BMW X1 at Rs.15,999 EMI (limited time offer)

This scheme does look good to me & is a good one for any one who has the initial cash + some extra ones and can manage paying a 2 month extra EMI! But the rider here is the "7 year" period. I would have been OK if this was a Japanese car. But 7 years of ownership of a German..Phew! That's taking it over the limit. In the present scenario, I am OK to own a German car till the warranty / extended warranty expires [that's roughly 4 years]; not a day more than that.
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Old 18th February 2012, 23:07   #18
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When a car company offers a 0% Interest Scheme you can be rest assured that they would give you a cash discount of more or less the amount equivalent to the interest amount applicable over the tenure of the loan. Instead of advertising a cash discount and reducing the Brand Value of a car, the company resorts to the 0% interest scheme. Mostly the schemes are in tie up with Private Banks like HDFC and the Company/ Dealer passes on the cash discount to the Bank.
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Old 18th February 2012, 23:52   #19
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Default Re: The BMW X1 at Rs.15,999 EMI (limited time offer)

Does anybody have an idea of what is the initial amount to be paid as down payment?
And what if I intend to sell the car after 5 years? Could someone please throw some light on this as well?
Thanks!
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Old 19th February 2012, 00:19   #20
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Default Re: The BMW X1 at Rs.15,999 EMI (limited time offer)

Quote:
Originally Posted by sugam View Post
And what if I intend to sell the car after 5 years? Could someone please throw some light on this as well?
So either you need to foreclose the loan [some banks charge a fee as well] or you need to transfer the loan to the new [II] owner and take the differential amount from him [if there is any as a part of the deal]. I guess for a party who can afford a BMW, 7 year term is bit too much.

On the initial down payment part, guess some one calculated a 12/14L in one of the previous posts.

Last edited by swiftnfurious : 19th February 2012 at 00:20.
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Old 19th February 2012, 01:08   #21
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Default Re: The BMW X1 at Rs.15,999 EMI (limited time offer)

Quote:
Originally Posted by Rameshdude View Post
Yes, I did check about the scheme. Basically, for 11 months you pay Rs 15,999/- and the 12th month,you pay 1,20,000/ ! This is a 7 yrs emi scheme.
Do you have the complete details? What about Downpayment/etc?

Quote:
Originally Posted by suhaas307 View Post
Top Tip: If one believes that they can truly afford a BMW, their bank-balance must be twice the price of the actual car, i.e. one must have an additional 30 lakhs to blow (like a little self-security deposit, or something), over and above the 30 lakhs that they intend to spend on the car, if they want to enjoy hassle-free motoring.
Suhaas: I differ from your point of view. With this logic, many of us wont have been able to buy our dream cars. We also need to account our future earnings in this equation. By the time we would save the 2x money needed to buy the car, the car price would have become 4x!!!!!!!


10L down payment is possible say by selling both my existing cars plus a couple of lakhs. I can work on an EMI of 15999+8600=24599/- so that 12th month bullet emi of 1.2L is taken care of. Alternatively, I can use my yearly bonus, yearly unclaimed perks which you get lumpsum in march end to pay the bullet emi. There is BMW shield for i think for 4 years which should take care of major maintenance expenses.
I feel that this offer is quite tempting unless we are missing something.
I tried to get details on the website but couldn't and have ended up registering on the page. Will share the complete info if i get it first and nobody has shared till then.
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Old 19th February 2012, 01:44   #22
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Default Re: The BMW X1 at Rs.15,999 EMI (limited time offer)

Quote:
Originally Posted by sharadmumbai View Post

Suhaas: I differ from your point of view. With this logic, many of us wont have been able to buy our dream cars. We also need to account our future earnings in this equation. By the time we would save the 2x money needed to buy the car, the car price would have become 4x!!!!!!!


10L down payment is possible say by selling both my existing cars plus a couple of lakhs. I can work on an EMI of 15999+8600=24599/- so that 12th month bullet emi of 1.2L is taken care of. Alternatively, I can use my yearly bonus, yearly unclaimed perks which you get lumpsum in march end to pay the bullet emi. There is BMW shield for i think for 4 years which should take care of major maintenance expenses.
I feel that this offer is quite tempting unless we are missing something.
I tried to get details on the website but couldn't and have ended up registering on the page. Will share the complete info if i get it first and nobody has shared till then.

I appreciate your opinion and your views and there is logic in it.

What I'm trying to say is that we must be rational when it comes to investing pot-loads of cash on a depreciating asset, such as a BMW 320d. Maintaining a German car is very different from maintaining a Jap, Korean or an Indian car. Running costs will shoot up and spare-parts are frankly exorbitant.

For instance, an outside-rear-view-mirror for a Hyundai costs under 10k, even when equipped with features such as turn-indicators, auto-fold and auto-adjust. But in a Mercedes, it is 3 times more.

If one buys a BMW with all his hard-earned money and has little left, he is certainly going to feel the pinch when a two-wheeler smashes his ORVM. But if the same person has a big amount saved up and dedicated for his ride, the pinch would be felt, albeit, a lot less.

There might be maintenance-schemes by BMW, that would bolster and cushion the expenses for existing customers. But how much is it going to 'shield' you at the end of the day? They are, after all, expensive cars. And sooner or later, you will have to spend a lot of money on them.

One must remember that 30 lakhs is 30 lakhs. And spending that much money on an asset that's potentially going to milk your wallet will warrant the need for a bigger bank balance.

Last edited by suhaas307 : 19th February 2012 at 01:46.
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Old 19th February 2012, 13:23   #23
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Default Re: The BMW X1 at Rs.15,999 EMI (limited time offer)

Quote:
Originally Posted by Rameshdude View Post
Yes, I did check about the scheme. Basically, for 11 months you pay Rs 15,999/- and the 12th month,you pay 1,20,000/ ! This is a 7 yrs emi scheme.
This could make sense in a scenario where a person wants to keep his monthly EMI low, and pay the 1,20,000 out of his annual bonus.
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Old 19th February 2012, 15:04   #24
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Default Re: The BMW X1 at Rs.15,999 EMI (limited time offer)

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Originally Posted by jogidada View Post
This could make sense in a scenario where a person wants to keep his monthly EMI low, and pay the 1,20,000 out of his annual bonus.
I am a self employed professional. So i don't know how much annual bonus a person receives. But spending all of your bonus money towards payment of a car loan and that too for the next 7 years is not so appealing.
Presently they are also offering huge discounts on 2011, 3 series corporate edition. I don't have the details.

And as requested by Sharad,i am attaching the details of the emi schemes.
Attached Files
File Type: pdf BMW_1025604_08_06_2011_12_51_45b.PDF (353.2 KB, 2824 views)
File Type: pdf BMW_1029472_15_07_2011_12_20_21b.PDF (353.1 KB, 1250 views)
File Type: pdf BMW_1029472_15_07_2011_12_27_54b.PDF (353.1 KB, 1557 views)
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Old 19th February 2012, 16:30   #25
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Quote:
Originally Posted by sharadmumbai

Do you have the complete details? What about Downpayment/etc?

Suhaas: I differ from your point of view. With this logic, many of us wont have been able to buy our dream cars. We also need to account our future earnings in this equation. By the time we would save the 2x money needed to buy the car, the car price would have become 4x!!!!!!!
Doubt schemes like these make sense for salaried folks, even those in industries like banking where you get a large proportion of total comp as a year end bonus. Agree with Suhaas that buying an expensive car makes sense only if one has 2x or more of the price of the car to "blow". As discussed on another thread, the total expense (interest + depreciation + fuel + maintenance) on a car should not be more than 10-15% of your total income (except if you are very young or living off family income). And I doubt I would assume a 7 year car life even in such a calculation.

Such schemes become attractive for businessmen, who tend to borrow for their business at rates higher than the rate which the car finance company charges, and benefit from the ability to claim depreciation on the car, and deduct interest from business income - a back ended scheme like this effectively allows one to buy a car one wants while financing one's business cheaply.

For a BMW x1 with an OTR price of Rs. 28 Lakhs, my estimate is that average total costs work out to almost Rs. 9 Lakhs a year, and you should consider it only if your post tax income is over Rs. 60 lakh per annum if you have limited responsibilities, and Rs. 90 lakh per annum if you don't as yet have substantial savings or an owned home. For the salaried, that implies a pre tax income of Rs. 90 Lakhs - Rs. 1.3 crore.
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Old 19th February 2012, 17:45   #26
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Default Re: The BMW X1 at Rs.15,999 EMI (limited time offer)

Quote:
Originally Posted by GTO View Post
Guys,
Thus, always consider whether you are at the point of your life where you can buy, own & drive a 28 lakh rupee car.
This is very important indeed to consider. There was yet another post explaining the math behind it, but, eventually buying a PREMIUM car from a PREMIUM stable is only ONE step. Manufacturers lure customers to make this ONE step which CANNOT BE UNDONE unless you decide to sell it. With a brand like BMW, I do not think they "really" are worried about trying to minimize expenses on your vehicle because they aren't really made for the middle-class or maybe even upper middle class.

THINK THINK THINK before you take that plunge.
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Old 19th February 2012, 20:01   #27
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One can buy anything one wants provided one can afford it. Even if one can't why should one deprive one's self of the pleasure? I would say, travel outside the country, do a track day experience in one or more of the cars one loves and come back to reality and driving the normal executive bus that one takes to work everyday. For me the Beemer X1 or something of that kind is not really definitive. It would be more like a Jag E type or a Mini Cooper S that I would drive for a day or two and have fun with on superb roads and in an overall more disciplined environment than our Indian road conditions! Or perhaps a Land Rover experience or something like that!
For here, I am happy with what I've got as it insulates me from the world around me on the Bangalore roads, which conditions I don't particularly identify with anyway, but have to make do with on my daily commute! Hence the desire for insulation on the form of a car that I like very much. The same argument holds perfectly good for a Beemer X1 fan, as it does for me!

Last edited by shankar.balan : 19th February 2012 at 20:03.
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Old 19th February 2012, 22:47   #28
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Default Re: The BMW X1 at Rs.15,999 EMI (limited time offer)

Quote:
Originally Posted by suhaas307 View Post

What I'm trying to say is that we must be rational when it comes to investing pot-loads of cash on a depreciating asset, such as a BMW 320d........................One must remember that 30 lakhs is 30 lakhs. And spending that much money on an asset that's potentially going to milk your wallet will warrant the need for a bigger bank balance.
Yup. I do agree that buying a 30L car and maintaining it are two different things.

Quote:
Originally Posted by Rameshdude View Post
I am a self employed professional. So i don't know how much annual bonus a person receives. But spending all of your bonus money towards payment of a car loan and that too for the next 7 years is not so appealing.
Presently they are also offering huge discounts on 2011, 3 series corporate edition. I don't have the details.

And as requested by Sharad,i am attaching the details of the emi schemes.
Tks Ramesh. The scheme seems to be nothing but a simple EMI working for various scenarios and i couldn't find the 15999/-offer. So its nothing but old wine in "old" bottle.

Annual Bonus is anywhere between 10% to 40% of your CTC and increases annually/switching jobs.


Quote:
Originally Posted by shankar.balan View Post
One can buy anything one wants provided one can afford it. ..............................! Hence the desire for insulation on the form of a car that I like very much. The same argument holds perfectly good for a Beemer X1 fan, as it does for me!
Shankar: You don't even need to travel abroad to drive your dream car for a day. you can do it very much in india - mumbai for many days!!! Go through this fantastic thread by GTO. I bet if we can get a 15999/- EMI scheme in this as well.

http://www.team-bhp.com/forum/super-...wning-one.html (Club Torque : Drive a Super Car in India *without* owning one)

Last edited by GTO : 20th February 2012 at 16:58. Reason: No more than 2 smileys per post please
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Old 20th February 2012, 03:10   #29
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Default Re: The BMW X1 at Rs.15,999 EMI (limited time offer)

Quote:
Originally Posted by GTO View Post
Guys,

Please don't ever get mislead by these gimmicks which repackage the finance deal to make it look more appealing (or rather, "Hey, I can AFFORD a BMW!!" thoughts). Remember, a 28 lakh rupee car is still a 28 lakh rupee car, whichever way you choose to make the payment. Thus, always consider whether you are at the point of your life where you can buy, own & drive a 28 lakh rupee car.

Let me put it another way : If something costs a 100 rupees:

- Whether you pay 1 Rupee right now, and 99 later

OR

- You pay Rs. 50 now and 50 tomorrow

OR

- You pay Rs. 20 five times

OR

- You pay Rs. 99 now and 1 rupee later

It's still a Rs. 100 product!
Very true if you dont factor cost of money into it. In reality if interest rate is 0% or at least less than inflation and the cost of money, than its better to pay 1 Rs now and 99 Rs later.

The point here is in laymans term that 7 years down the line the value of 100 Rs is probably going to be 50 Rs. In addition hopefully your purchasing power too will increase with time. Therefore factoring all this, if you are elligible and can afford 16k year 1 onwards, than it makes sense.

Of course you need to take into account cost of spares etc. But simply put the load of EMI reduces with time. We only live once, might as well live it to the fullest (as long as the home minister allows... but with an X1, I am guessing she wont complain!!)
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Old 20th February 2012, 09:13   #30
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Default Re: The BMW X1 at Rs.15,999 EMI (limited time offer)

So the regular Joe's chances of owning a BMW not only got bettered, but from the discussion looks like many will acquire it a lot quicker than expected.

http://www.team-bhp.com/forum/shifti...buy-bmw-1.html (Can a regular IT Joe ever buy a BMW?)
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