Team-BHP - Car Loan Query

URGENT

Guys, this query is posted on behalf of a friend of mine who's a non-bhpian. He lives in Delhi and is planning to buy a pre-owned 2010 BMW 740Li which someone is selling in Chandigarh. Now, the seller is not a dealer and the buyer has no address proof of Chandigarh. But my friend is ready to bear the transfer charges to the DL address. The car is costing him around 52L. He is planning to make a down payment of 35L and take a 7yr loan for the remaining amount from Delhi.

Now the question is;
1. Would the bank easily approve his loan or he will have to face some consequences as the car is brought from another place and is a pre owned vehicle? (He belongs to a well known family and has a good relationship with the bank but still)

2. What should be the rate of interest he should settle for?

PS: Also note down what all should he consider (Only in terms of finance... He has checked the car thoroughly and is happy with it)

Quote:

Originally Posted by Remo (Post 2896651)

Hi all,

I have availed a car loan from Axis bank with a payment tenure of 3 years. Just wanted to know, whether the loan repayment will have 37 EMI or 36 EMI. I always though 3 years tenure should be 36 months. :)

But Axis bank call center people differ and say i have to pay 37 EMI.

They deducted one EMI while disbursing the loan. They also had taken one advance EMI cheque, which has also been en cashed before my repayment tenure, which starts next month on October 1st. Now i have 35 more EMI left out.

The loan sanctioned letter i have received says Loan dispersed as the total loan amount i applied for, but in reality the dealer gives me a bill for DD payment received form Axis Bank as total amount minus the first EMI.

Can anybody suggest accordingly?

What is the rate of interest you are paying?
Also you should ask the bank about the 37th EMI and thanrevert back to the dealer. I am smelling something!

Hi,
I am currently in Singapore, and maybe moving to India By Middle of Next year, have planned to book a Swift Diesel now, so that by the time I return I can get the delivery.

Problem is, I would have stayed in Bangalore, for hardly a month or so, when the car delivery will happen.

How to seek a loan in this case, I was earlier staying in a rented acco in Bangalore, prior to moving here.

My previous loan was taken with this address.

Please do help out

Regards
Shailesh

Hi,
I'm just about to submit documents for car loan and there is news on TV that RBI has cut the interest rates and home and auto loans EMIs will come down.

Does this cut come into effect immediately? I mean I can delay applying for the loan for two or three days if the news rates are to come into effect. But if it takes a month or so for the new rates to take effect, then I'll go ahead and apply at current rates.

Please suggest.

Mods: Can we have this thread renamed to "Car Loan Queries Thread" or something like that so any one with queries on loans can use this thread(similar to "used car price check thread").

Quote:

Originally Posted by asdfvinay (Post 3027404)

Rates announced by RBI usually trickle down to bank loans, a little later. Say a month or so. Usually SBI is the first bank to announce rates revision and other banks eventually follow. If you are not in urgent need of this car loan, it's prudent to wait a little longer.

I am planning to purchase a car and take loan from SBI. The Bank is offering finance on the Ex showroom Price + Registration + Insurance. The manager says he will issue the cheque only in dealer's name.

But, the insurance price the dealer is quoting is way too high, and so, I plan to get it done on my own.

How do I get it financed by the Bank ? Will the Bank give me a cheque for that amt to me ?

Hi I had a small query and thought this is the right place to discuss it. I want to know that in case of discounts offered on a new car purchase, which invoice goes to the Bank for issue of loan purpose? For instance during my last buy I was issued 3 different invoices by the dealer:

1. Invoice issued to dealer by Chennai BMW plant. This is for a much lesser price than the ex showroom price told to the customer and gives an idea of how much margin dealers have on each car! Also along with the VIN number this invoice can be used to verify that the dealer hasn't been holding on to the car for a long time as you will know the date he himself received it in his yard.

2. Invoice of full ex showroom price of my car i. e. For Rs 31 L ( prevailing price in Delhi). This price is used for RTO taxation purpose and Delhi RTO doesn't allow registration on discounted price. Gurgaon RTO does it on discounted price though! Also this invoice is used for insurance premium calculation.

3. Lastly I have an invoice which is ex showroom price - discount offered. This invoice has been used for bank loan as obviously the bank would not sanction me a loan of more than what I actually paid for the car.

Now according to some people the bank is issued the Full exshowroom invoice and not the discounted invoice. But then how is this possible as the bank will only sanction you a loan amount that you paid for the car and more than that.

So Assuming a car costs 30L exshowroom and you get a discount of 5L over it. So final cost is 25L. The bank will need the discounted invoice and will sanction you loan of 25L ( assuming you have taken 100% loan for simpler understanding). If it sanctions you 30L then the dealer is literally taking you for a ride as they got the full amount i.e. 30L in this case and you end up paying higher EMIs to the bank as the bank will want its 30L ( + interest) from you.

Please throw some light on this.

Quote:

Originally Posted by drmohitg (Post 3338156)

So Assuming a car costs 30L exshowroom and you get a discount of 5L over it. So final cost is 25L. The bank will need the discounted invoice and will sanction you loan of 25L ( assuming you have taken 100% loan for simpler understanding).

Please throw some light on this.

The confusion is because you think that you have taken a 100% loan. I have explained it in the link given.

http://www.team-bhp.com/forum/luxury...ml#post3338157

Quote:

Originally Posted by lapsi (Post 3338185)

The confusion is because you think that you have taken a 100% loan. I have explained it in the link given.

http://www.team-bhp.com/forum/luxury...ml#post3338157

Saw your post but did not reply as we were going off topic there. Taking it further here and please pardon me for my ignorance but I really want to understand this:

Cars exshowroom cost: Rs 30L
Discount offered: 5L
Final exshowroom price: 25L

Now I want to apply for 90% loan. So basically I am applying for 90% of 25L which comes to 22.5L.
Assuming that the bank approves my loan application after establishing my credibility.

Now if the dealer sends the bank the 30L invoice: The bank will sanction 90% i.e. 27L.
If the dealer sends the 25L invoice ( what you actually paid) then the bank sanctions you 22.5L.

So in the first scenario the dealer is getting paid a higher amount than the price what you and the dealer agreed on. In case the bank sanctions 27L then obviously the dealer ended up giving you a lesser discount and you will be paying higher EMIs to the bank.

My SA gave this explanation to me and forwarded the discounted invoice to the Bank saying that the bank always needs the invoice of the final price that you are paying including discounts.

Quote:

Originally Posted by drmohitg (Post 3338207)

Now I want to apply for 90% loan. So basically I am applying for 90% of 25L which comes to 22.5L.

Now if the dealer sends the bank the 30L invoice: The bank will sanction 90% i.e. 27L.

As I said earlier, you are getting confused due to the percentage that you are sticking to.

If you want 22.50 lakhs, you will get 22.50 lakhs, since the loan application will state 22.50 lakhs. The loan application will not say 90% of the invoice.

I own a 2012 Swift Zdi financed from State Bank of Patiala on a 7yr term. Now, I wish to sell off this car and buy a Ford Fiesta, is it possible to get this loan switched to the new car, and sell off this car. If not, than obviously I need to clear off the existing loan, get a NOC from Bank and than sell off Swift and apply afresh for a new car loan for the Fiesta. What are my options?

Quote:

Originally Posted by ScorpMan (Post 3593807)

I need to clear off the existing loan, get a NOC from Bank and than sell off Swift and apply afresh for a new car loan for the Fiesta.

You understanding is correct, this is the only option available. Car loans are not transferrable either to a new car or new owner. Existing car loans have to be closed before a fresh one is issued.