Whats goin on in Auto Loans ??

DrunkenMonk · 3rd January 2006, 15:54

When I took a loan for my (used, from Automart) car, HDFC
fixed the interest rate and EMI based on a Rs. 2,00,000/- loan.
The money actually paid to the dealer was 1,90,000/-.

They kept calling me up for the balance...

I don't know what the arrangement was between the two.
HDFC is also a promoter of Automart India.

- mvnk

Max · 3rd January 2006, 16:27

HDFC and ICICI are very big banks and they have many hidden terms and conditions. I highly caution dealing with these banks but again some times we have no choice at all !

I will prefer never dealing with these both banks as I really had very bad experience with both banks. I am HDFC Banks' preferred GOLD Customer since last 7 years then also there home loan department treated me like Dogs.

Zappo · 3rd January 2006, 16:30

Quote:

Originally Posted by lamborghini

Hey guys,
what is the rate of interest on a used car for 5 years? And on a new car?
We are talking about an Elantra.
Tenure : 5 years
Loan Amount : 9.50 for new and 6.5 - 7L for second hand.
I know this is offtopic but sorry. Also what should one pay for a 2005 Elantra?

Hey lambo... Unlike the new car market the used car market is pretty blood sucking. The rates of interest is mostly outlandish. I do not think they have much of a varying rate for different cars in the used car market. What they do have is a valuation process based on which they decide the max amount they will loan out.

A few months back it was somewhere around 17% to start with (at least in the hatch category cars) which could be negotiated down to a max of 16% or so. That is very high. And then you have the additional hassles of getting it hypothecated and all...

Insane Devil · 3rd January 2006, 17:05

wow, well thanx for the info guyz.

I am taking a Loan on my purchase of LAURA, and i got the best quote around of 6.5% for 5 years, while EMI being 29,540/- on condition that i take the INSURANCE thru him only. i tried a couple other ppl, and the best they could offer me was 7% for 5 Years.

This is thru INDUS IND Bank.

Zappo · 3rd January 2006, 18:04

Quote:

Originally Posted by Insane Devil

wow, well thanx for the info guyz.

I am taking a Loan on my purchase of LAURA, and i got the best quote around of 6.5% for 5 years, while EMI being 29,540/- on condition that i take the INSURANCE thru him only. i tried a couple other ppl, and the best they could offer me was 7% for 5 Years.

This is thru INDUS IND Bank.

I would say percentage wise you got a good quote. What do you mean by " take the INSURANCE thru him only"? Does Indus Ind sells insurance as well? It is important that you take a close look at the Insurance house before you commit. Also, check the premium they are quoting vis-a-vis that of the others for this car.

Also, what is the total loan amount? Have you checked the EMI calculation? I take it that the loan is on a monthly reducing basis.

soccer · 3rd January 2006, 23:14

[

Quote:

quote=Zappo]I would say percentage wise you got a good quote. What do you mean by " take the INSURANCE thru him only"? Does Indus Ind sells insurance as well? It is important that you take a close look at the Insurance house before you commit. Also, check the premium they are quoting vis-a-vis that of the others for this car.

Also, what is the total loan amount? Have you checked the EMI calculation? I take it that the loan is on a monthly reducing basis.

[/quote]

Try Kotak Mahindra Primus Co. Ltd. They are straight forward and competative. I am their return customer. My EMI is 9850 For a loan amount of Rs. 5,03,000 lakhs for a period of 60 months. Apart from One EMI paid upfront I have not paid any other charges. Not even processing or documentation fees. Any one in Bangalore needs help, feel free to Pm me.

No finance company can dictate terms like compulsary insurance has to be done by them. They want this business because they want the huge commission they get on the premium paid. If you want back that commission ( approx 8%) back, PM me.

Soccer.

Soccer.

soccer · 3rd January 2006, 23:16

Quote:

Originally Posted by Insane Devil

wow, well thanx for the info guyz.

I am taking a Loan on my purchase of LAURA, and i got the best quote around of 6.5% for 5 years, while EMI being 29,540/- on condition that i take the INSURANCE thru him only. i tried a couple other ppl, and the best they could offer me was 7% for 5 Years.

This is thru INDUS IND Bank.

You have not mentioned the loan amount

Soccer

Minardi · 4th January 2006, 09:37

Hey lamborghini, we don't want to lose a Lancer fan, so stay off that Elantra

adityapd · 4th January 2006, 09:56

Quote:

Originally Posted by DrunkenMonk

When I took a loan for my (used, from Automart) car, HDFC
fixed the interest rate and EMI based on a Rs. 2,00,000/- loan.
The money actually paid to the dealer was 1,90,000/-.

They kept calling me up for the balance...

I don't know what the arrangement was between the two.
HDFC is also a promoter of Automart India.

- mvnk

it would be useful if you can specify the car, the rate of interest, the loan tenure and the emi which you pay per month.

~A

DrunkenMonk · 4th January 2006, 14:15

Quote:

Originally Posted by adityapd

it would be useful if you can specify the car, the rate of interest, the loan tenure and the emi which you pay per month.

~A

It was a long time ago... so I can't recollect
the details correctly, but:
RoI - approx. 19.5%
EMI - approx. 5300/-
Tenure - 5 years
Car - Opel Astra 1997 (4.5 years old at that time)

adityapd · 4th January 2006, 16:48

Quote:

Originally Posted by DrunkenMonk

It was a long time ago... so I can't recollect
the details correctly, but:
RoI - approx. 19.5%
EMI - approx. 5300/-
Tenure - 5 years
Car - Opel Astra 1997 (4.5 years old at that time)

Some quick numbers for you drunkenmonk :

Principal Loan 200000 Monthly payment 5,298.78
Interest rate 20.00% Total Interest paid 117,926.60
No. of payments 60 Total Principal paid 200,000.00

By the end of the loan tenure, you'll end up paying approx 3.2L + the downpayment u paid for the 97 Astra whose value won't even be 1 L as of today.

This is just an eye opener for those which shows what loan rates in the used car market can do to cars which depreciate like hell

~A

satish_appasani · 4th January 2006, 17:19

It's always better you approach more than one bank for the loan and mention the emi and interest rate of the other banks when dealing with one bank. They will do the calculation and tell you what the actual emi should be.

Happened to me. ICICI offered 6.5% for 5 years. EMI was 6750 something. Just hours before the delivery SCB approached me to offer the loan. When i mentioned the ICICI offer to the SCB guy, he said I am being charged Rs.100 per month extra. I called back ICICI and they immediately revised my EMI without a single word. This saved me 6000 in the total cost of my car.

Keep a guard on these guys. We are the lords as long as the money is with us and the bank and dealer want that at any cost.

Sumed · 4th January 2006, 17:20

Quote:

Originally Posted by soccer

[

Try Kotak Mahindra Primus Co. Ltd. They are straight forward and competative. I am their return customer. My EMI is 9850 For a loan amount of Rs. 5,03,000 lakhs for a period of 60 months. Apart from One EMI paid upfront I have not paid any other charges. Not even processing or documentation fees. Any one in Bangalore needs help, feel free to Pm me.

[/quote]

Hello Soccer... that is an excellent deal. When did you get this loan and for which car? I have taken a loan of INR 5 lakh in Aug last year (2005) to purchase the NHC and my EMI is INR 10,250 for 5 years!!! Though I did not pay any other charges, but there is a huge difference in my EMI and yours.

DrunkenMonk · 4th January 2006, 18:19

Quote:

Originally Posted by adityapd

Some quick numbers for you drunkenmonk :
By the end of the loan tenure, you'll end up paying approx 3.2L + the downpayment u paid for the 97 Astra whose value won't even be 1 L as of today.
~A

Yeah... that's the name of the game...

Other than a housing loan (on which there are tax benefits
and the value of the asset appreciates over time) it is always
a HUGE monetary loss to take any other kind of a loan...

- mvnk

soccer · 4th January 2006, 22:35

[quote]

Quote:

Originally Posted by Sumed

Hello Soccer... that is an excellent deal. When did you get this loan and for which car? I have taken a loan of INR 5 lakh in Aug last year (2005) to purchase the NHC and my EMI is INR 10,250 for 5 years!!! Though I did not pay any other charges, but there is a huge difference in my EMI and yours.

Date of Loan 17.08.2004
Amount of loan : 5,03,000 lakhs
EMI per Lakh : 1958
Period of repayment : 60 months less 1 month ( 1 EMI paid up front )
Name of the vehicle :Tavera

After taking this loan other companies were willing to match this offer. One of them offered even lower than this one, but by then I had given my word to the Kotak Rep. Who are your financiers? Is this your 1st loan from these people ?
The other hidden things we do not bother about are
1. Cheque bounce charges Rs. 250 with Kotak & 500 with others.
2. Fore-closure penalty.
3. Prompt payment rewards.

Anyway, I would'nt say that you got a bad deal.

Soccer

3rd January 2006, 15:54	#16
DrunkenMonk BHPian Join Date: Jun 2005 Location: Pune Posts: 80 Thanked: 3 Times View My Garage	When I took a loan for my (used, from Automart) car, HDFC fixed the interest rate and EMI based on a Rs. 2,00,000/- loan. The money actually paid to the dealer was 1,90,000/-. They kept calling me up for the balance... I don't know what the arrangement was between the two. HDFC is also a promoter of Automart India. - mvnk Last edited by DrunkenMonk : 3rd January 2006 at 16:01.
	() Thanks

3rd January 2006, 16:27	#17
Max BHPian Join Date: Jun 2004 Location: Thane Posts: 538 Thanked: 98 Times View My Garage	HDFC and ICICI are very big banks and they have many hidden terms and conditions. I highly caution dealing with these banks but again some times we have no choice at all ! I will prefer never dealing with these both banks as I really had very bad experience with both banks. I am HDFC Banks' preferred GOLD Customer since last 7 years then also there home loan department treated me like Dogs.
	() Thanks

3rd January 2006, 17:05	#19
Insane Devil BHPian Join Date: Mar 2005 Location: Hyderabad Posts: 987 Thanked: 173 Times View My Garage	wow, well thanx for the info guyz. I am taking a Loan on my purchase of LAURA, and i got the best quote around of 6.5% for 5 years, while EMI being 29,540/- on condition that i take the INSURANCE thru him only. i tried a couple other ppl, and the best they could offer me was 7% for 5 Years. This is thru INDUS IND Bank. Last edited by Insane Devil : 3rd January 2006 at 17:09.
	() Thanks

4th January 2006, 09:37	#23
Minardi BHPian Join Date: Jan 2005 Location: Mumbai Posts: 413 Thanked: 15 Times	Hey lamborghini, we don't want to lose a Lancer fan, so stay off that Elantra
	() Thanks

4th January 2006, 17:19	#27
satish_appasani Senior - BHPian Join Date: Jun 2004 Location: Hyderabad Posts: 1,112 Thanked: 104 Times View My Garage	It's always better you approach more than one bank for the loan and mention the emi and interest rate of the other banks when dealing with one bank. They will do the calculation and tell you what the actual emi should be. Happened to me. ICICI offered 6.5% for 5 years. EMI was 6750 something. Just hours before the delivery SCB approached me to offer the loan. When i mentioned the ICICI offer to the SCB guy, he said I am being charged Rs.100 per month extra. I called back ICICI and they immediately revised my EMI without a single word. This saved me 6000 in the total cost of my car. Keep a guard on these guys. We are the lords as long as the money is with us and the bank and dealer want that at any cost.
	() Thanks