Rate of interest on Passenger car Finance?

Zappo · 6th April 2006, 13:27

Hey guys... the rates have gone up but not to the extent you guys are talking about. The rates you are quoting are called the rack rates. However no one takes loans at these rates. The actual disbursal rates are always lower... depends on how well you negotiate. When the disbursal was somewhere around 6-6.25% just 6-8 months back the rack rate used to be around 8-9%. So you see...

By the way, do not believe on what you see at the SBI site. That second hand loan rate of 10.5% was there even 8 months back. Even during that time it was the lowest rate for second hand cars. So I went to inquire. The manager feigned total ignorance and said that if the rates were that easy he himself would take a loan... and then even started a lecture on why SBI won't give a second hand loan at anything less than 17%. Had a bloody holier-than-thou attitude that I could not care less for...

Zappo · 6th April 2006, 13:29

Quote:

Originally Posted by abdriver2000

I bought a XETA GLS in March.
Here are my figures
MRP of car = 299473
90%finance = 269000
EMI = 8695 for 36 months
Interest Rate=10.73% monthly reducing
Dealer discount=12100

My loan was approved earlier, current rates are 11.75%

The loan rate for Tata's petrol cars are always higher than their diesel cars. If you would have purchased an Indica Diesel your rate would have been lower by 1-1.5% at the least.

shiva_cool87 · 6th April 2006, 14:58

Lucky me!!! I got mine at 6.75%

for the Indica V2 Petrol -Jan 2006(not XETA). Got mine at HDFC Bank thru Manipal Motors(B'lore) for a period of 4 yrs.

Zappo · 6th April 2006, 17:27

Quote:

Originally Posted by shiva_cool87

Lucky me!!! I got mine at 6.75%

for the Indica V2 Petrol -Jan 2006(not XETA). Got mine at HDFC Bank thru Manipal Motors(B'lore) for a period of 4 yrs.

Hmmm... that was just the time it started hardening up. You got it in time. Till Sep'05 it was even lesser. Mine was at 5.9% or so...

adit1329 · 6th April 2006, 17:37

Quote:

Originally Posted by pingme

SBI and TATA finance are still offering rates around 8.xx% confirmed this last week

For 2nd hand cars it has gone way up to 15-16.5 %

nope just settled the deal on my used vtec for 13%

adit1329 · 6th April 2006, 17:39

Quote:

Originally Posted by Rtech

12% rates on new cars! Man! thats high. Real high. What is the reasoning behind the hike in rates (aside from the obvoius that is)??

rtech, the govt. has hiked the rates due to the high rates of delinquency...they figure with the high rates, they can cover the cost of the car in the interest and when they reposses the car, they will not run under loss.

dwarakv · 6th April 2006, 17:59

One can still bargain on the rates. I bought a baleno about a week back at 10.25% and got a financial discount also. Initially I was told that the rate would be 10.75% with no financial discount. I told the dealer(Mithra Agencies) that another one(Saboo) was offering at 10% with a financial discount(I knew this as I was negotiating with saboo too). Why did I pick a higher rate? Well, I was getting more discounts from mithra. Different dealers quote different rates from the same bank. My loan is with citibank. They are the cheapest right now other than SBI, atleast as per the dealers.

SBI advertises 85% of onroad price, but the person who is the approving authority has the final say and he can go as low as 60%. Happened to a friend of mine, who didn't bother going over to take the loan when he was told that his loan amount was 60% of the on road price.

Have fun,
Dwarak

soccer · 6th April 2006, 19:08

Quote:

Originally Posted by Zappo

I purchased my Indica in July'05 and after lot of hard bargaining and setting one financier against the other managed to get 5.8% or so as the lowest rate for a 3 year loan. I understand that now the rates have hardened a lot. Still I think a good and hard bargain should get you around 7.5%. Remember the 3 year loans always get you the best rates. So if the 5 year thing is available for 8.5% you should get the 3 year loan for at least 1% less and with some good negotiation at 1.5% less (7% rate of interest).

Hi Zappo,

Can you tell us your loan amount and the EMI? Did you pay any service/processing charges ?

sumitsingh · 14th April 2006, 09:34

Hey Everyone,

Just got some information regarding the interest rates for the following cars. Hope it helps you in your calculations..

a) Hyundai Xing with ICICI finance was at 13% monthly reducing with 4.5% discount on the loan amount

b) Toyota Corolla with ICICI Finance was at 12.5% monthly reducing with 5% discount on the loan amount

Each one said the loan rate has just risen again for the 2 or 3 rd in the last two weeks and were not ready to move on these rates.

Hope this helps.

-Sumit

nitinhegde · 21st April 2006, 21:11

It seems the loan rates are on a rise !
few months back it was quite low....

I recently booked a FORD IKON and after heavy bargaining with the finance guys ,finally the best I could manage was 10.25 %.
Note that the ROI calculations varies from bank to bank...
So,the best way is to ask for the per lakh EMI....its 2120 for me...

Venom_rider · 22nd April 2006, 12:01

Quote:

Originally Posted by dwarakv

One can still bargain on the rates. I bought a baleno about a week back at 10.25% and got a financial discount also. Initially I was told that the rate would be 10.75% with no financial discount. I told the dealer(Mithra Agencies) that another one(Saboo) was offering at 10% with a financial discount(I knew this as I was negotiating with saboo too). Why did I pick a higher rate? Well, I was getting more discounts from mithra. Different dealers quote different rates from the same bank. My loan is with citibank. They are the cheapest right now other than SBI, atleast as per the dealers.

SBI advertises 85% of onroad price, but the person who is the approving authority has the final say and he can go as low as 60%. Happened to a friend of mine, who didn't bother going over to take the loan when he was told that his loan amount was 60% of the on road price.

Have fun,
Dwarak

Absloutlely... I've also heard that is better to approach the DSP agents than the bank itself. The reason being that if negotiated well they tend to eat into their profit and give to a better ROI. Then make it up with other "Willing-to-spare" customers.
Yes EMI/Lakh is the best way to compare between banks...

CaliforniaKnight · 24th September 2008, 18:30

whats the bank rates now for new and used cars?
if used how old a car will they finance and till how long?

6th April 2006, 13:27	#16
Zappo Team-BHP Support Join Date: Oct 2005 Location: Hyderabad Posts: 5,922 Thanked: 2,699 Times	Hey guys... the rates have gone up but not to the extent you guys are talking about. The rates you are quoting are called the rack rates. However no one takes loans at these rates. The actual disbursal rates are always lower... depends on how well you negotiate. When the disbursal was somewhere around 6-6.25% just 6-8 months back the rack rate used to be around 8-9%. So you see... By the way, do not believe on what you see at the SBI site. That second hand loan rate of 10.5% was there even 8 months back. Even during that time it was the lowest rate for second hand cars. So I went to inquire. The manager feigned total ignorance and said that if the rates were that easy he himself would take a loan... and then even started a lecture on why SBI won't give a second hand loan at anything less than 17%. Had a bloody holier-than-thou attitude that I could not care less for...
	() Thanks

6th April 2006, 14:58	#18
shiva_cool87 BHPian Join Date: Feb 2006 Location: Bangalore Posts: 138 Thanked: 0 Times	Lucky me!!! I got mine at 6.75% for the Indica V2 Petrol -Jan 2006(not XETA). Got mine at HDFC Bank thru Manipal Motors(B'lore) for a period of 4 yrs.
	() Thanks

6th April 2006, 17:59	#22
dwarakv BHPian Join Date: Aug 2005 Location: Chennai Posts: 26 Thanked: 0 Times	One can still bargain on the rates. I bought a baleno about a week back at 10.25% and got a financial discount also. Initially I was told that the rate would be 10.75% with no financial discount. I told the dealer(Mithra Agencies) that another one(Saboo) was offering at 10% with a financial discount(I knew this as I was negotiating with saboo too). Why did I pick a higher rate? Well, I was getting more discounts from mithra. Different dealers quote different rates from the same bank. My loan is with citibank. They are the cheapest right now other than SBI, atleast as per the dealers. SBI advertises 85% of onroad price, but the person who is the approving authority has the final say and he can go as low as 60%. Happened to a friend of mine, who didn't bother going over to take the loan when he was told that his loan amount was 60% of the on road price. Have fun, Dwarak
	() Thanks

14th April 2006, 09:34	#24
sumitsingh BHPian Join Date: Sep 2005 Location: Noida Posts: 128 Thanked: 0 Times View My Garage	More updates on Interest Rate Hey Everyone, Just got some information regarding the interest rates for the following cars. Hope it helps you in your calculations.. a) Hyundai Xing with ICICI finance was at 13% monthly reducing with 4.5% discount on the loan amount b) Toyota Corolla with ICICI Finance was at 12.5% monthly reducing with 5% discount on the loan amount Each one said the loan rate has just risen again for the 2 or 3 rd in the last two weeks and were not ready to move on these rates. Hope this helps. -Sumit
	() Thanks

21st April 2006, 21:11	#25
nitinhegde BHPian Join Date: Apr 2006 Location: ~ Posts: 242 Thanked: 91 Times	I got it at 10.25 % from Kotak It seems the loan rates are on a rise ! few months back it was quite low.... I recently booked a FORD IKON and after heavy bargaining with the finance guys ,finally the best I could manage was 10.25 %. Note that the ROI calculations varies from bank to bank... So,the best way is to ask for the per lakh EMI....its 2120 for me...
	() Thanks

24th September 2008, 18:30	#27
CaliforniaKnight BHPian Join Date: Jun 2004 Location: IND + DXB Posts: 980 Thanked: 141 Times View My Garage	whats the bank rates now for new and used cars? if used how old a car will they finance and till how long?
	() Thanks