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Old 8th May 2020, 13:28   #1
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Default Car manufacturers introduce innovative, new finance schemes

Hyundai has announced five new car finance schemes for customers.

Car manufacturers introduce innovative, new finance schemes-hyundais-unique-car-finance-scheme.jpeg

Here are the details:

3 Months Low EMI Scheme:

Customers can opt for low EMIs for the first 3 months and the balance amount in remaining equal EMIs for 3 year, 4 year and 5 year loan tenures. This scheme is valid for all Hyundai models.

Step-up Scheme:

Customers have to pay EMI of Rs. 1,234 / lakh for the first year for a 7 year tenure loan. From second year onwards, EMI would increase by 11% every year till the end of the loan tenure. This scheme is valid for all Hyundai models.

Balloon Scheme:

Customers need to pay a lower EMI ( approximately 14 % Lower than normal EMI ) from 1st to 59th Month and the Last EMI will be 25% of Loan repayment. This scheme is valid for all Hyundai models.

Longest Duration Scheme:

This scheme offers up to 8 years of loan repayment duration. This scheme is valid on select Hyundai models.

Low Down Payment Scheme:

This scheme offers up to 100% on-road funding with minimum possible down payment. This scheme is valid on select Hyundai models.

All the above-mentioned schemes are from different banks for different sector.

Link to Team-BHP News

Last edited by Aditya : 8th May 2020 at 14:30.
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Old 8th May 2020, 17:14   #2
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Default re: Car manufacturers introduce innovative, new finance schemes

That's a master stroke from Hyundai India. Nowadays successful business is not just about good sales experience, product, and service, but also about innovative finance options/schemes.
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Old 8th May 2020, 17:17   #3
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Good news! Is Hyundai providing financing options or via a bank?
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Old 9th May 2020, 19:15   #4
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Default re: Car manufacturers introduce innovative, new finance schemes

Can anyone do the math, and calculate which, if any, of these emi will be beneficial vis-a-vis a normal tenure.
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Old 9th May 2020, 19:36   #5
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Good move by Hyundai ! Would be beneficial for people who were thinking to cancel their booking due to the COVID-19 crisis.
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Old 9th May 2020, 20:34   #6
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Default re: Car manufacturers introduce innovative, new finance schemes

Quote:
Originally Posted by turbo View Post
Can anyone do the math, and calculate which, if any, of these emi will be beneficial vis-a-vis a normal tenure.
From 30,000 feet all of them are the same. Such schemes usually run on the theme of giving benefits(virtual) in first few years Initially, and collecting full amount plus interest including all those losses in the later years.

In my view, the best loan is simply that which offers the lowest EMI for longer duration without any penalty for prepayment or pre-closure. Of course, without OR lowest processing fee.

All other schemes are only to attract and confuse customers

Last edited by gkveda : 9th May 2020 at 20:36.
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Old 9th May 2020, 22:07   #7
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Default re: Car manufacturers introduce innovative, new finance schemes

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Originally Posted by wheelguy View Post
That's a master stroke from Hyundai India.
Smart move, but none of these are proper discounts and won't get them far.

Hyundai, or any other manufacturer for that matter - is still months away from generating a proper cashflow from sales. People are not in a hurry to spend, and many who are planning to purchase vehicles - know they are a couple of months away from even greater deals.
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Old 12th May 2020, 14:01   #8
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Default re: Car manufacturers introduce innovative, new finance schemes

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Originally Posted by gkveda View Post
From 30,000 feet all of them are the same. Such schemes usually run on the theme of giving benefits(virtual) in first few years Initially, and collecting full amount plus interest including all those losses in the later years.
Well said .

While it is really nice to see some innovation within boring old car finance, the fact is, a 10-lakh car is a 10-lakh car at the end of the day. If you cannot afford it without a "special scheme", you basically shouldn't be buying it. I had commented on similar lines when Mercedes had come out with their bullet payment schemes.

Actually, with any purchase (even an iPhone), if you have to take out a calculator to see if you can afford it, you probably can't.

I'd prefer to be happily cruising around in a 3-lakh rupee used hatchback (that I could easily afford) than a 10-lakh rupee Hyundai (which caused stress on my liquidity).

Last edited by GTO : 12th May 2020 at 14:04.
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Old 12th May 2020, 14:11   #9
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Default re: Car manufacturers introduce innovative, new finance schemes

It's not a discount in any way but just flexible options. You never know what sells in india ! That's how diverse the market is.
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Old 12th May 2020, 15:55   #10
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Default re: Car manufacturers introduce innovative, new finance schemes

Did some math on the Balloon scheme. You pay the same amount as usual bank emi at the end of it all. Only difference is you will have 10% less of your monthly emi which you'll have to cough up for last emi.
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Old 12th May 2020, 16:23   #11
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Default re: Car manufacturers introduce innovative, new finance schemes

Quote:
Originally Posted by GTO View Post
I'd prefer to be happily cruising around in a 3-lakh rupee used hatchback (that I could easily afford) than a 10-lakh rupee Hyundai (which caused stress on my liquidity).
Wow! Super quote. Very sane words of advise. Especially in these troubled times. Like they say, many a men buy cars they don't need with money they don't have to impress people they don't like. But, actually, we also buy to impress people we like, like relatives, neighbours, peers, rivals, hell even strangers at traffic lights and mall parking lots. Silly us, indeed.

Pun aside, as is rightly pointed out above, most such schemes are just hogwash. I am a firm believer in saving up and buying than financing a depreciating item. Properties are the only thing I bought on loans. And, they have appreciated way past what I had paid for those. I also agree with you on used cars. The big advantage with them is that they have already taken a big depreciation hit and when it's time for you to offload, you lose bare minimal, provided of course, you bought smart and sold smart.
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Old 14th May 2020, 11:29   #12
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Default re: Car manufacturers introduce innovative, new finance schemes

Quote:
Originally Posted by turbo View Post
Can anyone do the math, and calculate which, if any, of these emi will be beneficial vis-a-vis a normal tenure.
Did a quick search on this and found an article explaining the advantages and disadvantages of these schemes.

It is quite evident that the traditional EMI is the safest way to go but due to certain situations, you now have an option for other options as well.

To be honest, it is only an extra option that might just benefit you somehow.

A sample of the math behind the three 3 different schemes: https://images.moneycontrol.com/stat..._auto-loan.jpg

Source: https://www.moneycontrol.com/news/bu...s-3348251.html
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Old 14th May 2020, 12:03   #13
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Default re: Car manufacturers introduce innovative, new finance schemes

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Originally Posted by punny.guy View Post

A sample of the math behind the three 3 different schemes: https://images.moneycontrol.com/stat..._auto-loan.jpg
The Hyundai scheme is slightly different in terms of math I think. The final EMI is 25% of loan amount i.e, 2.5 lakh instead of 4 lakh but your EMI only drops by 10-14% until final month.
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Old 15th May 2020, 16:59   #14
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Default Nissan launches new car finance schemes

Nissan has introduced new car finance schemes for customers.

Car manufacturers introduce innovative, new finance schemes-nissan.jpg

The carmaker has partnered with various financial institutions to offer a range schemes including paperless payment of car loans, special offers for women car loan applicants and professional based products for salaried, self-employed, Government & PSU employees, police and the agriculture sector.

Nissan is offering 'Job Loss Protection' on EMIs, which covers loss of job and medical emergencies (including Covid-19). Customers also get the option of deferring payments under the 'Buy Now - Pay from Jan 2021' scheme. It is available on select products.

Nissan is also offering insurance products giving medical emergency and job loss protection securing EMIs. A 'Zero Mile Car' product has been introduced looking at the opportunities in the used car business.

Additionally, the carmaker is also offering pick-up and drop service for customers.
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Old 15th May 2020, 17:30   #15
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Default Re: Nissan launches new car finance schemes

Nissan has also sent out an SMS-
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