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Old 18th February 2012, 12:43   #1
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Default The BMW X1 at Rs.15,999 EMI (limited time offer)

Saw a GoogleAd today for X1 at EMI 15999, ofcourse it has "conditions apply" included. Has anyone checked it out about this offer?


BMW X1 : Book your test drive
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Old 18th February 2012, 13:34   #2
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Default re: The BMW X1 at Rs.15,999 EMI (limited time offer)

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Originally Posted by RIC.BURNS View Post
Saw a GoogleAd today for X1 at EMI 15999, ofcourse it has "conditions apply" included. Has anyone checked it out about this offer?


BMW X1 : Book your test drive
Yesterday saw a Banner in the BMW showroom opposite Chennai Airport

" Zero % Interest for BMW cars . Conditions Apply".

You might also want to check that
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Old 18th February 2012, 14:14   #3
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Default re: The BMW X1 at Rs.15,999 EMI (limited time offer)

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Originally Posted by RIC.BURNS View Post
Saw a GoogleAd today for X1 at EMI 15999, ofcourse it has "conditions apply" included. Has anyone checked it out about this offer?


BMW X1 : Book your test drive
This offer has been running since December. They do have lot of finance offer as per customers need.
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Old 18th February 2012, 14:23   #4
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Default re: The BMW X1 at Rs.15,999 EMI (limited time offer)

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.
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Old 18th February 2012, 15:23   #5
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Default re: The BMW X1 at Rs.15,999 EMI (limited time offer)

Quote:
Originally Posted by RIC.BURNS View Post
Saw a GoogleAd today for X1 at EMI 15999, ofcourse it has "conditions apply" included. Has anyone checked it out about this offer?

BMW X1 : Book your test drive
Quote:
Originally Posted by v&v View Post
This offer has been running since December. They do have lot of finance offer as per customers need.
Actually, this offer has been out for quite some time now. I reported it myself in August 2011 in the "New Car Price" thread -

http://www.team-bhp.com/forum/indian...ml#post2484657 (The "NEW" Car Price Check Thread - Track Price Changes, Discounts, Offers & Deals)


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.
Yep, it's called the BMW Bullet scheme.
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Old 18th February 2012, 15:41   #6
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Default Re: The BMW X1 at Rs.15,999 EMI (limited time offer)

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!
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Old 18th February 2012, 15:58   #7
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Default Re: The BMW X1 at Rs.15,999 EMI (limited time offer)

GTO you also have to consider the time value of money. If there is actually zero% interest then the value which you are giving later has diminished. This can be attributed to the inflation rates of that duration.
Also at the same time if you are a "wise" investor or have "wise" investment managers for your money, then you have actually make more money with the money available in your hand.

All in all it depends on the wise decisions.

Also with the above statement i am making an assumption that one can afford a 28 lakh car at that moment of time. This has to be done by self evaluation.

Yes a 28 lakh car remains the same but in the end you end up paying less.
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Old 18th February 2012, 16:15   #8
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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.
Totally agree, but if someone is ready to plonk down cash for a 18L car, this could be a very good offer to upgrade if no strings attached.
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Old 18th February 2012, 17:51   #9
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Default Re: The BMW X1 at Rs.15,999 EMI (limited time offer)

Bang on GTO. Such advertised deals are just Gimmick. The Consumer Protection Laws are really lame in our country and hence we come across such advertisements all the time whether it is for a car or house or whatnot. There are no free lunches. And why would there be any? Everybody wants to make money and nothing wrong in it.

Be very cautious in even thinking about taking such offers. Well the biggest one is the one Credit Cards offer. Outright rubbish. Whether it is 0% interest on balance transfer (3% processing fee for a month of balance transfer translates to around 40% annualized rate of interest.) as they will charge some processing fee.

The only such financing deal that I have ever seen is the one I got while buying electronics for my house. I was dead sure that I wanted to buy it Croma as they had always given mental peace with *** if required. I got 0% interest financing and 0 processing fee over products that they had (and they sold stuff below MRP because I was buying quite a lot of stuff.).
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Old 18th February 2012, 18:08   #10
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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.
Ok this doesn't sound quite right unless there is a downpayment involved too.

For 7 years:
Each year 11 EMIs of Rs 15,999 comes to a total of 12.3L for 7 years.
Each year 1 EMI of 1.2L comes to 8.4L for 7 years.

In total you pay up 21L for 7 years which is less then the Cost of the car I guess. So I am assuming there is also a downpayment of around 10L at the start?

But generally speaking such deals are good IMO. Yes a 100 rs product is going to cost you 100 Rs at the end but it will surely pinch a lot lesser if I can pay it off in parts. For instance I may not be able to put down 28L at a go for a dream car but can certainly afford to pay off 15,999 and live that dream.
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Old 18th February 2012, 18:16   #11
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Default

These bullet payment schemes make it very easy for regular blokes to buy into their favorite brands. Provided of course, they have the wherewithal to generate sufficient cash for the bullet payments each year! It is a good ploy by luxury car manufacturers to acquire more consumers for their products.
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Old 18th February 2012, 18:33   #12
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Default Re: The BMW X1 at Rs.15,999 EMI (limited time offer)

Quote:
Originally Posted by drmohitg View Post
But generally speaking such deals are good IMO. Yes a 100 rs product is going to cost you 100 Rs at the end but it will surely pinch a lot lesser if I can pay it off in parts. For instance I may not be able to put down 28L at a go for a dream car but can certainly afford to pay off 15,999 and live that dream.
I will have to differ here. Whether to go for a deal or not totally depends on Net Present Value of the eventual cash flows. You could discount your cash flow outs by the opportunity cost (probably 10% for the sake of simplicity) over the number of period.

Too technical? Let me try making it simple.

Example: ABC wants to buy a car.
Assumption: ABC has Rs. 1,00,000 today. ABD intends on buying say a Scorpio that costs Rs. 1,00,000 on road. ABC will get 10% annual return (after tax) if he/she chooses to invest this into say a FD. If ABC wants to take a loan from a bank to buy the car, he/she has to pay 13% Rate of Interest to Bank.
Options:
1. ABC can buy the car by paying full amount upfront.
2. ABC can take the loan at 12% and buy the car, while ABC invests the amount he/she had into a Bank and earn 10% interest.

ABC would end up losing 2% when opting for Loan to buy the car.
However, the good part is the ABC would have some liquidity in the future in case ABC requires that money for some other purpose. So liquidity is indeed coming at a cost. In this case 2%.

Hence, the bigger the gap (2% in our example) between cost of borrowing and interest income, the more likely the person is going to be lured towards paying as much upfront as possible. If this gap was 5% or more (provided ABC has enough cash upfront), most of the times taking a loan to buy car won't make sense and vice versa.

ABC has to option of either paying everything upfront and taking delivery of the car. So in nutshell ABC pays cash and gets car. No more transactions to be done anymore.
Or, if ABC can invest that amount for one year and earn say 10% annually (ignore tax on interest earned) and take loan to buy the car at 12%. There is a clear spread of 2%.

Such deals that we see (as in this BMW X1 case) are hardly to consumer's advantage. If at all they are charging you less than you think they should by a certain financing scheme; the more likely truth is that they would be ready to sell the car at a big discount in any case if you pay upfront.

No free lunches. I know I am saying that again.

Last edited by Animesh : 18th February 2012 at 18:34.
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Old 18th February 2012, 19:02   #13
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Default Re: The BMW X1 at Rs.15,999 EMI (limited time offer)

To add a little to what GTO had said earlier, even though it looks and sounds tempting, one must think long and hard before buying something like an Audi or a BMW or a Mercedes.

Buying an executive luxury car is not the same as running it on a daily basis.

Having 30 lakhs in the bank is not enough.

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.
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Old 18th February 2012, 19:08   #14
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Default Re: The BMW X1 at Rs.15,999 EMI (limited time offer)

@ drmohitg
I had enquired about 7 months back. Their financial services can be tailor made to your requirements. But basically i think it is about 10 L down payment plus 12.5% interest on the loan amount.
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Old 18th February 2012, 20:26   #15
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Default Re: The BMW X1 at Rs.15,999 EMI (limited time offer)

Quote:
Originally Posted by Animesh View Post
I will have to differ here. Whether to go for a deal or not totally depends on Net Present Value of the eventual cash flows. You could discount your cash flow outs by the opportunity cost (probably 10% for the sake of simplicity) over the number of period.
Thanks for that long post although it still went a little over my head. Maths is not my strong subject!

But jokes apart, I know that at the end of the there are no free lunches. But for me the EMI options do open up a window of oppurtunity to go ahead and get that car. Lets say I earn 1L/month. Now for me to get 28L in a go will take me a decade or more. By that time things would have changed and who knows what will happen. We may be flying in cars then for all I know. So if I can get that car by paying 15-20K per month it suddenly does become "Do-able".

Anyways I am sure this thread is not meant to discuss the pros and cons of the EMI options. So lets not get too far away from the topic.
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