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Old 6th March 2013, 17:37   #16
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Re: Want Nano? Swipe your Credit Card, says Tata

Tata has finally realized that the actual customer base for Nano are the folks who need a small, second car at home. I hope they would stop projecting Nano as the cheapest car.

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Originally Posted by sa_kiran View Post
Now the car has become a true commodity :-) I hope that it really picks up and families struggling on dangerous bikes move to Nano (or other safer cars).
This is not a scheme for the first time car buyer who couldn't afford a car till now. How many such families can afford 16k per month EMI for the next year? They could have got a 4 year car loan at less than half that EMI anytime.

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Originally Posted by pganapathy View Post
Assuming they have worked out a good deal with the banks and there are no hidden costs, this has the potential to reinvigorate their sales. Sad that they can't stretch it to other vehicles in their range
I don't think this scheme would work for other models since the 12 months period is unlikely to be increased. How many potential Tata customers would have a credit limit to swipe out even a Vista or a Manza? At 8333 per lakh, these folks would need to be ready for almost 50-70k EMI for the next 1 year if they buy Vista/Manza using credit card. If someone can afford it, they are more likely to look at JLR instead of Tata
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Old 6th March 2013, 17:52   #17
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Re: Want Nano? Swipe your Credit Card, says Tata

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Originally Posted by zenren View Post
I don't think this scheme would work for other models since the 12 months period is unlikely to be increased. How many potential Tata customers would have a credit limit to swipe out even a Vista or a Manza? At 8333 per lakh, these folks would need to be ready for almost 50-70k EMI for the next 1 year if they buy Vista/Manza using credit card. If someone can afford it, they are more likely to look at JLR instead of Tata
Actually, if there are no hidden costs involved, it is actually a brilliant way for anybody that does not take a loan and pays off the car in full. It is actually cheaper. Instead of a one time payment of say 5 or 10 lakhs, you pay the same amount over 12 months. You can modulate your funds a bit better.

Also would you rather pay say an amount of 50 thousand a month for a year or for four to five years. I would much rather pay that amount for one year.
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Old 6th March 2013, 18:22   #18
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Re: Want Nano? Swipe your Credit Card, says Tata

I think Tata is targeting the second car buyer here. As someone mentioned above. If a customer has a credit limit of 2L on his CC then why would he go for a Nano. This holds true if it is his first car. The equation changes drastically if the same person is looking for a second car.
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Old 6th March 2013, 19:27   #19
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Re: Want Nano? Swipe your Credit Card, says Tata

Well, I atleast like the idea of credit card swiping. I used to joke in the friend circle when they ask about buying a new luxury car that "I forgot my card; else would have swiped and took it home"! Seems it's becoming a reality.

But the questions are,

1) How many people who want to have a Nano have a 2L credit limit?
2) How many people who have a 2L credit limit would want the Nano?

Nonetheless, a good marketing initiative. Hope we see more of these coming from TATA in future!

Edit:: Wanted to quote this, forgot somehow!
Quote:
Originally Posted by Warwithwheels View Post
How many of the credit card companies provide such a generous credit limit to the salaried class?
+1 !

Last edited by swiftnfurious : 6th March 2013 at 19:36. Reason: Added "Edit" portion
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Old 7th March 2013, 12:31   #20
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Re: Want Nano? Swipe your Credit Card, says Tata

This concept is already being used successfully at electronics stores. e.g. Samsung Plaza has a tie-up with HDFC Bank (and some others) so that you get the zero % EMI option when you swipe your card to buy, say a large screen TV. It is definitely a workable idea for the Nano as well.

Interesting point about the credit limit and car choice correlation, though.
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Old 7th March 2013, 14:01   #21
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Re: Want Nano? Swipe your Credit Card, says Tata

Every car manufacturer should think of introducing such 0% credit card EMI facility by tie up with banks so that after paying a cash down part payment the rest can be easily made with cards.
Today, Maruti True Value charges additional Bank charges for the payment made through credit cards.
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Old 7th March 2013, 14:53   #22
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Re: Want Nano? Swipe your Credit Card, says Tata

Very Good Move and First Initiative by Tata. We need every card manufacturer to follow the same trend by offering 0% EMI Facility and No Additional Extra Charges
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Old 7th March 2013, 23:23   #23
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Re: Want Nano? Swipe your Credit Card, says Tata

Quote:
Originally Posted by swiftnfurious View Post

But the questions are,

1) How many people who want to have a Nano have a 2L credit limit?
2) How many people who have a 2L credit limit would want the Nano?

+1 !
Somebody, who want to buy a toy / gift for wifey / son / daughter....this scheme will workout.

Here the credit limit is not the issue, but the repayment period.
For somebody with good credit history, banks will easily increase their limits or add a special scheme for the nano purchase.
But regarding repayment, unless the period is more----it really don't woo the first time car buyers.

One question - Whether the buyers can pay the on-road price or just the showroom price, using the card?
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