Quote:
Originally Posted by ramki067 Zappo,
Thanks for the suggestions, however i've more doubts now. Please excuse me for my innocence.
1. Dealer discount is the one which they say at present 11K discount on Alto? or is it anything else. I thought this is given by Maruti. If this is so, then does bargaining with different dealers fetch even more discount?
2. What is this finance discount. How do i go about finance discount from my financier,i.e., Canara bank.They are offering 11.75 interest for me, and this is the same when you see even in their websites.No change. Please explain.
Thanks in advance.
Regards,
Ramki. |
Oh, I missed out on your post earlier. Let me answer them in the same order as your questions,
1. Yes, that 11k is most probably the dealer discount. Now, many a times they pit in everything into one and give a consolidated discount. In actual terms Dealer Discounts are extended by the dealers to push stock. They have a margin for each car sold. From that they may give you some discount.
Say a dealer makes 15000 rupees by selling a car. He may very well give you a discount of 10000 rupees if you buy the car from him. This is the dealer discount. This may vary from dealership to dealership. Every dealer may not give you the same dealer discount.
However, it is possible that if you did not ask for it the salesman figured that you are unaware of various other discounts possible on the final figure. So he very shrewdly adds another 5000 rupees as the corporate discount with the dealer discount (if you buy the car then he will ask for the necessary documents for this part of the deal) to show you a big discount figure.
So at the end of the day you have to shop around to find the maximum discount that you can extract from the dealer. Ask your dealer that you also need the corporate discount, so what will be the final figure of discount? Either he will let you know that its already included or else you will get some more of discount.
2. Finance discount is something which is primarily seen amongst the private banks. If you go through them for your loan you get some amount back as finance discount. This ranges from 1.5% to 3.5% (at least as I have seen/heard). I do not know whether Canara will give you any finance discount though.
So, finally here is the strategy that may help you cut out of all the haze.
* For discounts, negotiate hard with the dealers. Go to each of them and let them know that you are also talking to the others. Drop some figures, even if a little exaggerated, as the quote you got from a competing dealer. And then fish for what more he can give you. Try dealer discount, finance discount, corporate discount, any other discounts in that order.
* Approach a good few bank DSAs and fish for the best rates. Again reel out some figures and ask them to better it to get your business. Always ask them what will be the exact EMI for your loan amount and tenure. Once you think you have got the best rate, ask for the finance discount. While doing this remember to ask and ensure that they do not pass off some processing fee or professional services fee or some similar charges under one pretext or the other.
Its a bit laborious but then may fetch you the best deal as well.