Team-BHP - Toyota's new scheme for the Corolla- Does it make sense?
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-   -   Toyota's new scheme for the Corolla- Does it make sense? (https://www.team-bhp.com/forum/indian-car-loans-insurance/14416-toyotas-new-scheme-corolla-does-make-sense.html)

Most you you may have heard about the new scheme being offered by Toyota on their Corolla. It goes something like this (check the pop-up on their Website: for more info)

Downpayment: Rs.1,50,000
EMI for 3 years: Rs.18,000
After 3 years, you have the option of an assured buy back by the Company (min. Rs.3 lakhs) or you can choose to keep the car and pay the balance via another loan.

Downside: This is only in colaboration with ICICI (Ugdh!!)

So, you think this makes sense?

Did you guys also check out the new limited edition corolla?

http://www.toyotabharat.com/showroom...ededition.html

Quote:

Originally Posted by Rtech
Most you you may have heard about the new scheme being offered by Toyota on their Corolla. It goes something like this (check the pop-up on their Website: for more info)

Downpayment: Rs.15,000
EMI for 3 years: Rs.18,000
After 3 years, you have the option of an assured buy back by the Company (min. Rs.3 lakhs) or you can choose to keep the car and pay the balance via another loan.

Downside: This is only in colaboration with ICICI (Ugdh!!)

So, you think this makes sense?

you made me go bonkers, on down-payment of Rs 15,000 only!
it is Rs 1,50,000!

here is the link to check it out:
http://www.toyotabharat.com/showroom...ive_smart.html

but do you really feel that a 3yr old corolla will fetch only 3-3.75lakhs?
i guess not, it'll fetch much more than that!
and hence you also have the option for selling it in open market and pay toyota its share and keep remaining with you!

if it is like this then it seems ok to me.
but i gues there must be some hidden costs involved too.

one should check such offers thoroughly, before going for them!

Quote:

Originally Posted by Rtech
Most you you may have heard about the new scheme being offered by Toyota on their Corolla. It goes something like this (check the pop-up on their Website: for more info)

Downpayment: Rs.15,000
EMI for 3 years: Rs.18,000
After 3 years, you have the option of an assured buy back by the Company (min. Rs.3 lakhs) or you can choose to keep the car and pay the balance via another loan.

Downside: This is only in colaboration with ICICI (Ugdh!!)

So, you think this makes sense?

Saw this ad in the papers here and was wondering how they could give the Corolla so cheap (1,49,075 + (18,350*35) = 7,91,325). The advt did not mention about the balance amount or the 2nd loan to pay it off. But then, I guess *Conditions Apply exists for such inducements/ambiguities. :-)
BTW, the downpayment is not 15K, but 150K.

just scratched my head a little more on this :)

imho, the whole game depends upon the price it can fetch after 3 yrs!
if corolla is phased out by that time, no one might buy it for more than 3.75 lakhs itself!

and if you pays 3.75 lakhs after 3 yrs to close the deal, car remains with you, else return the car without any money back and have fun!

or sell it in open market, and if it provides you with some better money, consider yourself lucky!

also imho, this scheme is as good as buying the new car for full payment and keeping it for 3 years. but it does gives a mental satisfaction of paying in installments!

also, the price they have quoted for the car is ex-showroom, hence costs of insurance etc. are to be born by buyer only!
so they'll either increase your downpayment by 30-40K or increase your EMI by about 1K!!

well, no doubt, a good initiative to attract janta!!

Quote:

Originally Posted by Rtech
So, you think this makes sense?

Standard Company Lease program that is practiced around the world.
If you dont buy it after 3 yrs, they will sell it as a used car. But you will be left without anything in hand after those 3 years, apart from having been able to use it for 3 yrs. You are paying 18K a month for this..

There are takers for this elsewhere, but we have to see how successful it is in India.

Quote:

Originally Posted by revharder
imho, the whole game depends upon the price it can fetch after 3 yrs! if corolla is phased out by that time, no one might buy it for more than 3.75 lakhs itself!

and if you pays 3.75 lakhs after 3 yrs to close the deal, car remains with you, else return the car without any money back and have fun!

Guess they would sell it at a price higher than the 3,75L [calculate this on depreciation basis]. Just that if the user gets the car, he could get it a price lower than what someone else would pay for that car, in this situation.

IF this works well, the one to gain will be ICICI, for the money it could make. And Toyota for the number of cars it can sell.

oops! Mistyped the downpayment! Would have been a better deal if it were Rs.15,000 instead of Rs.1,50,000 though.

could this be to get a lot of their stock out and somewhat saturate the market before the civic hits ?

i guess these deals are better for people who will get the best out of car within those three years!

rental cabs are like this!
they'll run such cars for some unrealistically high figures and then throw the car at toyota dealerships!
only then one can derive the full benefit of these schemes! :)

Quote:

Originally Posted by Rtech
oops! Mistyped the downpayment! Would have been a better deal if it were Rs.15,000 instead of Rs.1,50,000 though.

Posting this msg reg the residual value.
18000 x 36 = 6,48,000
+ 1,50,000 = 7,98,000

But, the 6.48 also includes the intrest for the 3 yrs. So actual residual value will be higher than the 3.7L [approx] mentioned above, and hence the used car will be sold at much higher levels.

Good point abt this being done keeping the Civic launch in mind. And the Civic is the direct competitor to the Corolla. [The NHC isnt].

The scheme could also be used by companies as a perk to employees .. or to show it as an expense.
Wonder if Toyota Bharat is going to put in fine print like limited usage [1500km a month etc], and additional charges for usage above such levels. Again, this is standard terms of car leases elsewhere

A new Corolla if taken on a loan basis would cost apprx. 14L for the base model after interest.
In this case, for apprx 9L (after reg and insurance) you are getting the Corolla for 3 years. After 3 years, when you sell it off, considering the new variant will be out, the car would fetch apprx 6L in the used car market if treated properly.
Hence technically you aren't losing out on anything except the down payment (6L resale value + 9L that you are paying for the car now = 14L which you would have paid for the car if you bought it w/o this scheme on a loan basis) for your next ride. But if this works, loads of other manufacturers may soon start offering this to lure buyers.
So the Civic and the NHC/Fiesta gang better watch out.
Cheers

so much so for the full page ad for a scheme like this. many of the customers would atleast get fooled into calling up delaerships atleast.

after i saw this ad for H1 that is the base version, i asked them if this offer was valid for H2 also. i was just informed that it was. today i got a call from one of the dealerships i had enquired with and then comes the cat out of the bag.

you pay 18k something for 35 months and the 36th cheque amount is for around 4 lakh rupees and the down payment comes to around 250000. so after three years i have to pay 4 lakh rs which is one third the amount of the car.

i feel that this is utter rubbish. may be it will work for some sectors but not for induviduals who buy a car.

the reasoning i got is when i can have a corrolla for the emi of a honda city why i cant i go for it.

so even if i m going for a corolla it wont be this scheme atleast.

Shubbhi

Toyota, being a very astute international player, would have a few tricks up its sleeve - mainly PR oriented. They know abt the new Honda Civic abt to be lauched here shortly. And they even know that their Corolla (which looks long in the tooth now) will stop selling before the Honda Civic even comes to the showrooms. In fact Toyota bosses were so stunned by the new civic when it debuted in the Geneva motor show that they immediately cancelled their new model Corolla which was said to be a very conventional design over the Civic.

So, we should really not be fooled by this brilliant execution from Toyota.

Quote:

Originally Posted by revharder
rental cabs are like this!
they'll run such cars for some unrealistically high figures and then throw the car at toyota dealerships!
only then one can derive the full benefit of these schemes! :)

Check the fine print. All lease deals in the US have a mileage limit of 12-15,000 mi/year. If you exceed that then there is a penalty on a per mile basis.

Companies like to lease for some financial benefits and also because they dont want the hassle of selling the car after 3 years.


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