Loan scam: 2-wheeler dealer charging as high as 26% interest!

katchkamalesh · 4th May 2018, 20:28

Today I went to check out Suzuki Access and TVS NTORQ. I was hoping to test drive the vehicle and also get a quotation.

First I went to MPC Suzuki, Gowrivakkam, Chennai and then to TVS, Selaiyur, Chennai. Both the showrooms did not have a test drive vehicle and asked me to come over next week. I saw a stark contrast in the overall ambience, store layout. While MPC was clean and well maintained with AC functioning, TVS’ showroom was not that clean and has fans all over the place. MPC was like a supermarket and TVS like a local kirana store.

Also another point to note was that while the salesman at Suzuki was conversing in Tamil, the saleswoman at TVS was conversing in English. I am not complaining but it felt a bit weird considering the ambience. It came as a surprise. Both the salespeople had no clue what they were talking about when it came to technical aspects.

I managed to get the quote from both the showrooms. Since my father got an sms from TVS which advertises 3.9% interest, I got the finance scheme from TVS.

There seems to be a huge discrepancy in the rate of interest committed and the rate of interest charged.

Something did not add up, so I did a quick calculation and found that they are charging very high interest rates. The last scheme (in a shade of light green) was offered to a friend and is not mentioned in the pamphlet that the showroom has and I do not have the advertised rate of interest for this plan.

Going forward, please do a calculation on your own before availing any loan from the showroom.

Instead of availing a vehicle loan at 26% interest, I would rather go for a personal loan @ 11%-12%. It will not only save me money but also save me the hassle of going to the RTO to cancel hypothecation.

GTO · 8th May 2018, 09:34

Thanks for sharing, katchkamalesh! Moving your post to a new thread.

If you're buying new, the best way to get a low interest rate is to shop around - related thread. For cars, rates <10% are more the norm than the exception.

katchkamalesh · 8th May 2018, 10:43

Thanks for creating a new thread GTO.

Most of the people that I spoke with brush aside the issue citing that the interest is only Rs 8300 odd, the amount is meagre to them.

Unless this attitude of the general public changes, the dealers will make merry.

4th May 2018, 20:28	#1
katchkamalesh BHPian Join Date: Jul 2013 Location: Chennai Posts: 236 Thanked: 347 Times	Loan scam: 2-wheeler dealer charging as high as 26% interest! Today I went to check out Suzuki Access and TVS NTORQ. I was hoping to test drive the vehicle and also get a quotation. First I went to MPC Suzuki, Gowrivakkam, Chennai and then to TVS, Selaiyur, Chennai. Both the showrooms did not have a test drive vehicle and asked me to come over next week. I saw a stark contrast in the overall ambience, store layout. While MPC was clean and well maintained with AC functioning, TVS’ showroom was not that clean and has fans all over the place. MPC was like a supermarket and TVS like a local kirana store. Also another point to note was that while the salesman at Suzuki was conversing in Tamil, the saleswoman at TVS was conversing in English. I am not complaining but it felt a bit weird considering the ambience. It came as a surprise. Both the salespeople had no clue what they were talking about when it came to technical aspects. I managed to get the quote from both the showrooms. Since my father got an sms from TVS which advertises 3.9% interest, I got the finance scheme from TVS. There seems to be a huge discrepancy in the rate of interest committed and the rate of interest charged. Something did not add up, so I did a quick calculation and found that they are charging very high interest rates. The last scheme (in a shade of light green) was offered to a friend and is not mentioned in the pamphlet that the showroom has and I do not have the advertised rate of interest for this plan. Going forward, please do a calculation on your own before availing any loan from the showroom. Instead of availing a vehicle loan at 26% interest, I would rather go for a personal loan @ 11%-12%. It will not only save me money but also save me the hassle of going to the RTO to cancel hypothecation. Attached Thumbnails
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8th May 2018, 09:34	#2
GTO Team-BHP Support Join Date: Feb 2004 Location: Bombay Posts: 70,518 Thanked: 300,705 Times View My Garage	Re: Loan scam: 2-wheeler dealer charging as high as 26% interest! Thanks for sharing, katchkamalesh! Moving your post to a new thread. If you're buying new, the best way to get a low interest rate is to shop around - related thread. For cars, rates <10% are more the norm than the exception.
	() Thanks

8th May 2018, 10:43	#3
katchkamalesh BHPian Join Date: Jul 2013 Location: Chennai Posts: 236 Thanked: 347 Times	Re: Loan scam: 2-wheeler dealer charging as high as 26% interest! Thanks for creating a new thread GTO. Most of the people that I spoke with brush aside the issue citing that the interest is only Rs 8300 odd, the amount is meagre to them. Unless this attitude of the general public changes, the dealers will make merry.
	(1) Thanks