Rate of interest on Passenger car Finance?

ghdreamz · 5th April 2006, 15:44

Hi there...

Can any one let me know about the rate of interest dealers charge on financing passenger cars (like Indica Xeta) for period of 36 Months EMI.

I heard that Indica V2 Xeta is around 3.4 Laks on road in Hyderabad, would like to know the rate of interest (on 3 year finance)

If anyone has taken Xeta or Marina recently (2006) let me know the EMI's and the Rate of Interest.

Thanks in advance
ghdreamz@hotmail.com

pingme · 5th April 2006, 15:56

I enquired at TATA showroon at Pune and they told me that TATA Finance is offering 8.5% for 5 year loan. Thats the lowest interest rate I have heard recently.

Zappo · 5th April 2006, 16:46

You will have to learn to negotiate... bargain hard. Only then can you expect a good deal on new car finance. Else if you just do a casual enquiry you will always be told the rack rates which are always a good few hundred basis points higher than the actual retail rates you can bargain for.

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).

ghdreamz · 5th April 2006, 17:56

Thank you PINGME and ZAPPO for your quick responses, and sitting in Middle East i was thinking that its around 10%

Thank you guys. vbmenu_register("postmenu_204258", true);

EVO6 · 5th April 2006, 18:07

The best rate you can get as of now for 3 years is about 8.5% after all negotiations. That will amount to Rs.3155 per lac... The rates are going up so if you interested then please go ahead and get it done asap else u wanna pay more...
Cheers

sumitsingh · 5th April 2006, 18:11

Quote:

Originally Posted by EVO6

The best rate you can get as of now for 3 years is about 8.5% after all negotiations. That will amount to Rs.3155 per lac... The rates are going up so if you interested then please go ahead and get it done asap else u wanna pay more...
Cheers

EVO6, wouldn't the rate of interest also depend on the company and the model you choose since the dealer - bank might be willing to part with some of their returns based on how a model is selling?

Can you specify if this deal is for a specific auto company or for a Xeta.

-SUmit

Zappo · 5th April 2006, 18:17

Quote:

Originally Posted by sumitsingh

EVO6, wouldn't the rate of interest also depend on the company and the model you choose since the dealer - bank might be willing to part with some of their returns based on how a model is selling?

Can you specify if this deal is for a specific auto company or for a Xeta.

-SUmit

You are very right sumit. The rates do vary, not only from company to company but also between various models. When I was buying my Indica I was told that while the rate for a diesel car is very competitive the comparative rates for the petrol model will be at least 1% higher!

pingme · 5th April 2006, 18:20

Quote:

Originally Posted by sumitsingh

EVO6, wouldn't the rate of interest also depend on the company and the model you choose since the dealer - bank might be willing to part with some of their returns based on how a model is selling?

Can you specify if this deal is for a specific auto company or for a Xeta.

-SUmit

SBI is offering 8.5-8.75 for new cars from any company. Only things except for maruti, you will have to apply to the bank on your own, get the loan sanctioned and then go to deal for the payment. Maruti has tied up with SBI, HDFC and ICICI as per my knowledge.

I think TATAs have teamed up with TATA Finance

and ICICI. TATA Finance is also offering rate comparable to SBI if you are looking for a TATA vehicle

If I am correct, most of the other banks like HDFC/ICICI are offering above 10%

Zappo · 5th April 2006, 18:42

Quote:

Originally Posted by pingme

I think TATAs have teamed up with TATA Finance

and ICICI. TATA Finance is also offering rate comparable to SBI if you are looking for a TATA vehicle

If I am correct, most of the other banks like HDFC/ICICI are offering above 10%

I doubt that... much as Tata Finance tries they fail to be as competitive as the ICICI bank. I found that out when I purchased my car. The showroom in collusion with the Tata Finance people tried to subvert my loan to Tata Fin. However as soon as I realized what was happening I came down on them like a wall. Then they even agreed to actually offer me a rate almost as good as ICICI (actually .25% more than ICICI rate) and tried to beg and cajole me into it. I almost fell for it when I noticed that the buggers were going to charge me 2% processing fee on the loan amount!!! That is when I blew my top and said no way. But then Tata Fin said they can not waive off the processing fee. So I got the loan through the ICICI bank.

ghdreamz · 5th April 2006, 19:41

SBI CAR LOANS: FLOATING RATES

1. New Vehicles: Metro/Urban
------------------------------------------------------------------
Repayment Period Rate of Interest
------------------------------------------------------------------
Upto 3 years Rs. 7.5 lac & above: 8.00% p.a.
Below Rs. 7.5 lac: 8.50% p.a.
> 3 yrs and upto 5 years 8.75% p.a.
> 5 years and upto 7 years 8.75% p.a.
------------------------------------------------------------------

2. New Vehicles: Rural/Semi-urban
------------------------------------------------------------------
Repayment Period Rate of Interest
------------------------------------------------------------------
Upto 3 years Rs. 7.5 lac & above: 8.00% p.a.
Below Rs. 7.5 lac: 8.75% p.a.
> 3 yrs and upto 5 years 9.00% p.a.
> 5 years and upto 7 years 9.25% p.a.
------------------------------------------------------------------

3. Used Vehicles
------------------------------------------------------------------
Repayment Period Rate of Interest
------------------------------------------------------------------
Upto 3 years: 10.50% p.a.
> 3 years and upto 7 years 11.00% p.a.
------------------------------------------------------------------

http://www.sbi.co.in/viewsection.jsp...d=0,16,393,395

Real_man · 5th April 2006, 21:17

Is everyone sure about the rates. As according to my information the rates has been revised by RBI last month

Now its very difficult to get interest rate below @11 %.

I made a mistake, we r buying a new tavera. The interest offered to us in the month of FEB was 9% for loan amt 3,45,000.
Last week booked the Travera and we got @ 11%

adit1329 · 5th April 2006, 21:21

new car interest rates have gone up and it is 12% for small cars and 11.5% for premium cars...

used car interest rates are at around 13%....

8.5% days have gone......................

pingme · 6th April 2006, 11:50

Quote:

Originally Posted by adit1329

new car interest rates have gone up and it is 12% for small cars and 11.5% for premium cars...

used car interest rates are at around 13%....

8.5% days have gone......................

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 %

Rtech · 6th April 2006, 12:00

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)??

abdriver2000 · 6th April 2006, 13:06

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%

5th April 2006, 15:44	#1
ghdreamz Newbie Join Date: Mar 2006 Location: Hyderabad Posts: 7 Thanked: 0 Times	Rate of interest on Passenger car Finance? Hi there... Can any one let me know about the rate of interest dealers charge on financing passenger cars (like Indica Xeta) for period of 36 Months EMI. I heard that Indica V2 Xeta is around 3.4 Laks on road in Hyderabad, would like to know the rate of interest (on 3 year finance) If anyone has taken Xeta or Marina recently (2006) let me know the EMI's and the Rate of Interest. Thanks in advance ghdreamz@hotmail.com
	() Thanks

5th April 2006, 15:56	#2
pingme BHPian Join Date: Feb 2005 Location: Pune Posts: 102 Thanked: 2 Times	I enquired at TATA showroon at Pune and they told me that TATA Finance is offering 8.5% for 5 year loan. Thats the lowest interest rate I have heard recently.
	() Thanks

5th April 2006, 16:46	#3
Zappo Team-BHP Support Join Date: Oct 2005 Location: Hyderabad Posts: 5,922 Thanked: 2,697 Times	You will have to learn to negotiate... bargain hard. Only then can you expect a good deal on new car finance. Else if you just do a casual enquiry you will always be told the rack rates which are always a good few hundred basis points higher than the actual retail rates you can bargain for. 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).
	() Thanks

5th April 2006, 17:56	#4
ghdreamz Newbie Join Date: Mar 2006 Location: Hyderabad Posts: 7 Thanked: 0 Times	Thank you PINGME and ZAPPO for your quick responses, and sitting in Middle East i was thinking that its around 10% Thank you guys. vbmenu_register("postmenu_204258", true);
	() Thanks

5th April 2006, 18:07	#5
EVO6 BHPian Join Date: Apr 2005 Location: Pune Posts: 488 Thanked: 11 Times	The best rate you can get as of now for 3 years is about 8.5% after all negotiations. That will amount to Rs.3155 per lac... The rates are going up so if you interested then please go ahead and get it done asap else u wanna pay more... Cheers
	() Thanks

5th April 2006, 19:41	#10
ghdreamz Newbie Join Date: Mar 2006 Location: Hyderabad Posts: 7 Thanked: 0 Times	SBI Loan Interest Rates are here... SBI CAR LOANS: FLOATING RATES 1. New Vehicles: Metro/Urban ------------------------------------------------------------------ Repayment Period Rate of Interest ------------------------------------------------------------------ Upto 3 years Rs. 7.5 lac & above: 8.00% p.a. Below Rs. 7.5 lac: 8.50% p.a. > 3 yrs and upto 5 years 8.75% p.a. > 5 years and upto 7 years 8.75% p.a. ------------------------------------------------------------------ 2. New Vehicles: Rural/Semi-urban ------------------------------------------------------------------ Repayment Period Rate of Interest ------------------------------------------------------------------ Upto 3 years Rs. 7.5 lac & above: 8.00% p.a. Below Rs. 7.5 lac: 8.75% p.a. > 3 yrs and upto 5 years 9.00% p.a. > 5 years and upto 7 years 9.25% p.a. ------------------------------------------------------------------ 3. Used Vehicles ------------------------------------------------------------------ Repayment Period Rate of Interest ------------------------------------------------------------------ Upto 3 years: 10.50% p.a. > 3 years and upto 7 years 11.00% p.a. ------------------------------------------------------------------ http://www.sbi.co.in/viewsection.jsp...d=0,16,393,395
	() Thanks

5th April 2006, 21:17	#11
Real_man BHPian Join Date: Oct 2005 Location: Mumbai Posts: 69 Thanked: 8 Times	Rates revised Is everyone sure about the rates. As according to my information the rates has been revised by RBI last month Now its very difficult to get interest rate below @11 %. I made a mistake, we r buying a new tavera. The interest offered to us in the month of FEB was 9% for loan amt 3,45,000. Last week booked the Travera and we got @ 11%
	() Thanks

5th April 2006, 21:21	#12
adit1329 BHPian Join Date: Dec 2005 Location: Bangalore Posts: 346 Thanked: 3 Times	new car interest rates have gone up and it is 12% for small cars and 11.5% for premium cars... used car interest rates are at around 13%.... 8.5% days have gone......................
	() Thanks

6th April 2006, 12:00	#14
Rtech Team-BHP Support Join Date: Apr 2004 Location: Bombay Posts: 5,770 Thanked: 359 Times View My Garage	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)??
	() Thanks

6th April 2006, 13:06	#15
abdriver2000 BHPian Join Date: Feb 2004 Location: Mumbai Posts: 331 Thanked: 30 Times View My Garage	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%
	() Thanks