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-   -   Help!! Need advice before 30th am (Last day for End of Quarter offer) for a palio 1.6 (https://www.team-bhp.com/forum/indian-car-loans-insurance/25759-help-need-advice-before-30th-am-last-day-end-quarter-offer-palio-1-6-a.html)

Hi Folks
I got an offer for the palio 1.6 from a dealer in bangalore with HDFC. I'd be very very grateful if any of you could get back on this asap to help me make a decision. Hope this info is also useful for some others later on too!:)

Here's what the dealer had to offer initially on the car before discussing a finance option:
1. Insurance worth Rs 16471 off
2. Extended warranty 18 months (total of 3 years warranty) worth 4800 off. (one of the above is corporate offer part)
3. Accessories free:
*Sun film (its Gareware International btw)
*Mud flaps
*Floor mats
*3M Chemical treatment (not sure if this is the new car treatment)
and *5% off on any other accessories.

After several minutes of discussion/negotiation (including early hints on not getting the engine immobilizer and leather wrapped steering and leather wrapped gear knob etc thanks to the info from fellow BHPians...) and some finance option discussions, here is what they mentioned :

* 14k off in addition to the above 1, 2 and 3 (!!), if i go for the following finance option:

2325 per lakh ( he called this the rack rate .. vs the best rate),
ie EMI of approx 9068 for 5 years. I think this interest rate comes to 14.75 - i am not sure , so i have quoted the emi per lakh

Questions:
1. Is this a good finance option?
2. On asking the dealer how he could provide this, he mentioned this is being done as "rack rate" (and not "best rate" ) option - which means dealer would usually get some amount to play with (in this case 14k), which he can choose to pass on to the customer or not. So he can get off this "middle man commission" since bank gets their target by EOQ and so does the dealer in terms of their sales figures ....
Does this make sense for a consumer? Please reply asap friends, as i have to make a closure on this in the morning Saturday.

Thanks in advance!

So thats a total of approx 34k from the OTR price of 506954.! What do you guys say???

If you have decided on this car, then go forward. I think you've got some good offers. You can try and negotiate and bring that 14K off into the best rate too.

BTW, did you check with other FIAT dealers?

Thanks mate for the quick reply!
Could you elaborate on the bolded item above?

@sithon,

emi per lakh for 5yrs is in the range of 2225-2295(depending on how you negotiate).they are asking you to pay 2325.you would end up paying 6000-1800 over a period of 5 years. in this deal you are getting addl 14k discount.you are still saving atleast 8k.

dealers get atleast 2.25% of the loan amt.they atleast get 8775 as commission,which they are passing on to you.

try bargaining for a higher discount. with 2325 per lakh emi.

Sithon, is this the old look Palio or the new Stile?