Go Back   Team-BHP > BHP India > The Indian Car Scene


Reply
 
Thread Tools Search this Thread
Old 6th March 2013, 15:20   #1
GTO
Team-BHP Support
 
GTO's Avatar
 
Join Date: Feb 2004
Location: Bombay
Posts: 47,729
Thanked: 89,209 Times
Default Want Nano? Swipe your Credit Card, says Tata


Tata introduces an industry first; Customers can now swipe their credit card and drive out in a Tata Nano on the same day. These customers can also convert the entire amount in monthly installments at 0% interest, over a period of 12 months, at an EMI of Rs. 8,333 per lakh.

The Nano has partnered with five banks for this scheme - Axis Bank, HSBC Bank, ICICI Bank, Kotak Mahindra Bank and Standard Chartered Bank. Customers who have credit cards from these banks can avail of the special scheme in 26 cities, across 75 Tata Motors Dealerships.

According to Mr. Ranjit Yadav, President, Passenger Vehicles Business Unit, Tata Motors, “This offer will enable customers to own a car in the fastest and hassle free manner. With the introduction of this offer, consumers get the benefit of converting the entire amount on the credit card into interest free installments, spread over a period of 12 months and manage the monthly cash flow better.

Link : Tata Nano Official Review (Tata Nano : Test Drive & Review)

Last edited by GTO : 6th March 2013 at 15:25.
GTO is offline   (16) Thanks Reply With Quote
Old 6th March 2013, 15:35   #2
Senior - BHPian
 
parrys's Avatar
 
Join Date: Oct 2011
Location: Thane - Mumbai
Posts: 1,272
Thanked: 5,772 Times
Default Re: Want Nano? Swipe your Credit Card, says Tata

A good move by Tata IMO to keep the ball rolling for the cheapest car in the world branding disaster.

The only question I have is what about the hidden costs, example processing fees charged by credit card companies / banks every time you convert a transaction into an EMI.

Will this be all inclusive? Or insurance, road tax etc. will be in cash?

The campaign might find a few customers who will be lured by the 0% Interest factor but the processing fees might come as a shock.

Last edited by parrys : 6th March 2013 at 15:38.
parrys is offline   (1) Thanks Reply With Quote
Old 6th March 2013, 15:46   #3
BHPian
 
aroop's Avatar
 
Join Date: Mar 2008
Location: Kolkata
Posts: 125
Thanked: 19 Times
Smile Re: Want Nano? Swipe your Credit Card, says Tata

Quote:
Originally Posted by GTO View Post

Tata introduces an industry first; Customers can now swipe their credit card and drive out in a Tata Nano on the same day. These customers can also convert the entire amount in monthly installments at 0% interest, over a period of 12 months, at an EMI of Rs. 8,333 per lakh.

Link : Tata Nano Official Review (Tata Nano : Test Drive & Review)
I think its a good move. No hassles of documentation etc, since the bank issuing the credit card would take care of the creditworthiness of the customer. Any default in EMI payment would automatically translate to exorbitant interest rates which come with the credit card.

The cost of loan (ie the interest component which banks will forfeit on account of 0% interest) would probably be borne by Tata Motors.

If 'Swipe and drive out' is really the mantra, it also implies that there are too many nanos lying with the dealers waiting to be sold.

In future, we might see similar schemes for some slow movers as well.
aroop is offline   Reply With Quote
Old 6th March 2013, 15:47   #4
BHPian
 
Join Date: Jan 2012
Location: Bangalore,Coorg
Posts: 790
Thanked: 361 Times
Default Re: Want Nano? Swipe your Credit Card, says Tata

Assuming they have worked out a good deal with the banks and there are no hidden costs, this has the potential to reinvigorate their sales. Sad that they can't stretch it to other vehicles in their range
pganapathy is offline   Reply With Quote
Old 6th March 2013, 15:48   #5
Senior - BHPian
 
Warwithwheels's Avatar
 
Join Date: Aug 2009
Location: India
Posts: 1,251
Thanked: 1,013 Times
Default Re: Want Nano? Swipe your Credit Card, says Tata

How many of the credit card companies provide such a generous credit limit to the salaried class?
Warwithwheels is offline   (1) Thanks Reply With Quote
Old 6th March 2013, 15:50   #6
BHPian
 
Abhi_abarth's Avatar
 
Join Date: May 2012
Location: Hyderabad
Posts: 331
Thanked: 113 Times
Default Re: Want Nano? Swipe your Credit Card, says Tata

This is surely lucrative but as parrys said need to watch out for the processing fee. Moreover, not sure if people are ready to go ahead when you have the face-lift model going through the tests.

Hope it helps TML
Abhi_abarth is offline   (1) Thanks Reply With Quote
Old 6th March 2013, 15:59   #7
BHPian
 
Viju's Avatar
 
Join Date: May 2006
Location: Narita
Posts: 866
Thanked: 1,631 Times
Default Re: Want Nano? Swipe your Credit Card, says Tata

This move comes a week late for me I guess! Last week, when we were paying the full amount for my wife's Nano LX, there was problem in doing an account transfer. We were ready to swipe the credit card, save for the 2% processing fee (4500/- for the 2,50,000/-). So we waited another day to do the account transfer.

I wonder if they have waived the processing fee in this scheme!
Viju is offline   Reply With Quote
Old 6th March 2013, 16:00   #8
Senior - BHPian
 
safari_lover's Avatar
 
Join Date: Feb 2007
Location: Bengaluru / Bagdal
Posts: 1,058
Thanked: 377 Times
Default Re: Want Nano? Swipe your Credit Card, says Tata

Quote:
Originally Posted by parrys View Post
The only question I have is what about the hidden costs, example processing fees charged by credit card companies / banks every time you convert a transaction into an EMI.
The processing fee would be a one time charge and may not be substantial compared to the benefits of easy EMIs. For ex. I swiped my card for 75K recently with 6 EMIs options at 0% interest. The fee charged was ~1000Rs.

Not many people would have credit card limits of 2L, but most of them would have multiple cards. May be they could make use of more than one card and of course, there would be the added benefit of reward points from the transactions

Last edited by safari_lover : 6th March 2013 at 16:02.
safari_lover is offline   Reply With Quote
Old 6th March 2013, 16:09   #9
ACM
Distinguished - BHPian
 
ACM's Avatar
 
Join Date: Mar 2008
Location: Mumbai
Posts: 4,152
Thanked: 2,457 Times
Default Re: Want Nano? Swipe your Credit Card, says Tata

Good Scheme

Could Help the Nano.

The Rewards Points would be like an added benifit / discount. If there is indeed no processing fees then it makes superb logic, but if there is a processing charge then the points advantage would more or less get nullified against that.

Again I guess we are implying there is no transaction charge as well. Else that is another 1.25-2.1% down the drain.
ACM is offline   Reply With Quote
Old 6th March 2013, 16:22   #10
BHPian
 
k2max6's Avatar
 
Join Date: Apr 2007
Location: New Delhi
Posts: 482
Thanked: 129 Times
Default

When we can buy LCD TV's costing over 2 lakhs in emi at 0% then why not a Nano . A great move IMO.

But the point in case is how many nano buyer's would be having such credit limits.

It would be great if other car manufacturers also introduce such schemes.Kind of instant car loan via credit cards. No frills loan.No waiting.

Even if 2% is charged, it hardly matters when you are getting interest free loan.

Last edited by k2max6 : 6th March 2013 at 16:24.
k2max6 is offline   Reply With Quote
Old 6th March 2013, 16:31   #11
Senior - BHPian
 
ghodlur's Avatar
 
Join Date: Sep 2009
Location: Thane
Posts: 5,039
Thanked: 2,075 Times
Red face Re: Want Nano? Swipe your Credit Card, says Tata

Quite Innovative option bought out by Tata Motors and an apt one considering the present situation they are in right now. Also considering the fact that there have been too many credit card frauds coming to light, would this be an good alternative?

Would any collateral be needed by the CC company before they can sanction this option? This is an industry first (IMO) and needs to be verified thoroughly before it can be accepted as viable.
ghodlur is offline   Reply With Quote
Old 6th March 2013, 16:49   #12
BHPian
 
sa_kiran's Avatar
 
Join Date: Jun 2011
Location: Thane
Posts: 508
Thanked: 161 Times
Default Re: Want Nano? Swipe your Credit Card, says Tata

Now the car has become a true commodity :-) I hope that it really picks up and families struggling on dangerous bikes move to Nano (or other safer cars).
sa_kiran is offline   Reply With Quote
Old 6th March 2013, 16:52   #13
Senior - BHPian
 
parsh's Avatar
 
Join Date: Aug 2010
Location: Bombay
Posts: 1,517
Thanked: 956 Times
Default Re: Want Nano? Swipe your Credit Card, says Tata

What a really Nano'vative idea Tata! This may really work out well for quite a few people.

I remember, when I got my car loan. A single call to ICICI Cards division asking for it, them checking my records in few minutes and within minutes it was sanctioned without need to do any paper-work and round trips of the bank at all, they just issued me a reference number to tell dealer and whew it was through sitting pretty at my place. However, that did not convert into EMIs on my card but to PDCs on the savings account linked to it.

Last edited by parsh : 6th March 2013 at 16:54. Reason: grammar correction
parsh is offline   Reply With Quote
Old 6th March 2013, 17:05   #14
BHPian
 
akhilesh51's Avatar
 
Join Date: Jan 2009
Location: Jaipur, RAJ
Posts: 628
Thanked: 321 Times
Default Re: Want Nano? Swipe your Credit Card, says Tata

There seems to be one catch:

The entire amount needs to be repaid within a year. Even with the low price, this will still translate to 10,000+ EMI for its buyer.

That will take this vehicle out of reach of anyone earning less than atleast 30K per month, a salary at which people start to aspire for a relatively plush vehicle in range of 3-5L.

This scheme is only good for customer who wish to part-pay (50-60%) in cash and convert the rest of amount in EMI without having to go through the hassle of loan formalities. A good option for metro towns where a nifty hatchback is required within the family of 4 and income around 50K per month.

In case of cash-strapped buyer looking for finance, I really think this is not even an option.
akhilesh51 is offline   Reply With Quote
Old 6th March 2013, 17:18   #15
BHPian
 
Join Date: Jan 2013
Location: Chennai
Posts: 234
Thanked: 286 Times
Default Re: Want Nano? Swipe your Credit Card, says Tata

On paper looks good. How many have such a high credit limit on their cards. For those who indeed have 2L credit limit on their cards, would they be buying a NANO.

Perhaps, this scheme is intended for those who have 50% cash and wish to swipe their card for the remaining 50%, with out getting in to the hassle of car loan processing.

However 0 interest scheme, with no hidden charges appears too good to be true.
Mudhalaipatti 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
A Nano trip on a Nano budget...in a Tata Nano novice_alto Travelogues 11 28th September 2014 15:19
Credit Card Purchase Surcharge 1.5% (and a discussion on TIPS) sam003 Shifting gears 114 6th February 2013 12:28
Online Credit Card Scam...Pls help!! crn12 Shifting gears 20 21st January 2013 16:06
Scary News : Network Solutions loses Credit Card information emkay456 Shifting gears 0 28th July 2009 14:01
Credit card menace kutlee Shifting gears 39 17th August 2007 18:59


All times are GMT +5.5. The time now is 19:18.

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