I have been driving my faithful li’ll Maruti 800 for a decade or so. Its high time I shift gears.
So what did I do ? I hunted around for an upgrade. Looked at all the Santros and Altos and Zens and the Josh machines and got myself real confused.
What I liked wasn’t in my budget. What came in my budget wasn’t what I was looking for. So I now started to hunt for a Car Loan.
Whisper ’Car Loan’ and it will be echoed in all corners of Bombay in a jiffy. Before I could say ’hello’ I had a shower of calls from nearly all the banks I could think off and some I didn’t even know existed - like ABN-Amro ( I am not the banking types )
These tele-marketing ladies and their sweeter than sugar voices can really put you in overdrive. Its only later when you crash into a road divider ( their briefcase toting executives ) that you wake up to harsh reality. I would have expected those sweet voices and their sweeter faces instead of the hurly burly and pushy Male executives and their fancy calculators and their mindboggling number games.
I had guys over from ICICI ( really aggressive and pushy and sticky ) and guys from HDFC ( relatively less aggressive but sticky ) and Standard Chartered ( polished - he even offered to take me out for lunch ! ) ABN-Amro ( tech-savvy - ECS facility ) CITIbank ( the thieves - Beware their sweet talking ever willing to oblige attitude )
So what did I learn ? I learnt ( the hard way ) that the grass is always greener on the other side of the fence and there are many fences to be hopped across.
There are innumerous ways one can get conned by these smooth talking number crunching magicians. They can twist and turn and present their EMI (Equated Monthly Instalment) as the most feasible and attractive one. Even fudge the numbers to look like as if you are paying a lower rate of interest. Be wary and try to work out the IRR (Internal Rate Of Return) which gives you the true picture of the actual interest being paid by you.
If you want to calculate how much interest you will actually be paying then either you need to be smart mathematician or you could use the following links to download a LOAN CALCULATOR or just fill in some blanks and get the right numbers. Yes it’s really that easy.
https://saskcu.com/membersoln/loanpay.html (Fill in Blanks..very easy..and very efficient)
https://bykeyword.com/pages/detail7/download-7300.html
The above is a Loan Advisor(Download this small file.It works for only 10 calculations and then you must purchase it.
Always ask your service agent for the EMI per Lakh because that is the simplest way to calculate your rate of interest as well as compare offers. Keep a fixed loan amount in mind and never change this figure ( or you’ll need to start this game all over ) and ask for the best offers from all of them. Never ever decide and sign on the dotted line soon. Always tell them that you’ll let them know. Take all offers in writing only.
Finally you can safely arrive at the best EMI after playing Roulette and Black Jack with each Bank representative by comparing, bluffing and asking for better rates. If so and so can offer this rate why cant you ?
Also bear in mind that some of them will incorporate the huge kickbacks and discounts ( which the car dealers and the banks dole out ) into the EMIs. This will definitely be very confusing but is inevitable. Like for example I was even offered a whopping Rs.75, 000/- discount on the Palio Luxury Petrol model ! Besides the Banks also pay out about 4% to 6% depending on the number of car loans that a particular dealer/financer has managed to sell in a particular month/Quarter or Year. This too gives the dealer a leverage to tilt the loan EMI in his favour ( all to your benefit )
A simple piece of advice..do not allow them to set off the discounts against your EMI. It is always advisable to take your discounts upfront. Let the EMI be higher but encash what you are getting up front. This way you actually end up paying lesser in the long run. Trust me !
Normally you wouldnt be able to secure these discounts from Showrooms. But the dealers and Finance associates are the ones to tap for all this. Ultimately the car is delivered from Showrooms only - so you can rest assured on that.
Also no down payments need to be made to the loan agents. All they need are your papers ( proof of income - residence - photographs - IT returns of last 3 years ) to get your loan sanctioned. Once that is done, only then go to the showroom of your choice and pay your booking amount to the showroom and confirm your choice. Do inform them that you are opting to finance your vehicle and give them the particulars.
Issue your down payment (minimum possible) to your dealer keeping in view the delivery schedule of your vehicle. (Why let YOUR money be used by the dealers)
Just 3 days before actual delivery you will be given your Chassis Number and Engine Number and which is when all your finances need to be in order. Like your loan disbursement and your advance EMI cheques should be with the BANK so that they can disburse the Loan and you can take delivery of your dream vehicle on stipulated day.
I would like to add here that When I tried to sell my faithful little Maruti 800 I was in for a rude shock. All the dealers offered a ridiculously low figure that I couldn’t even imagine. I tried one and all but they all were the same.
Thereafter I put an ad in the yahoo car section and hey presto ! - I got calls from next day onwards and the calls continued for a couple of days even after I had pulled out the ad and sold the car. Thats the power of Internet. Give automartindia and the TIMES classifieds online and the various other online auto related websites a look too. They actually work. Yes even Bazee (though they charge Rs.100/- for 15 days, a pittance I say) was quite effective.
PS : BIG TIP ! Another important aspect when you sell your old vehicle. Never EVER sell your comprehensive insurance along with your old car ( State this in very explicit words in your ad and dealings too ) Because if you have accumulated ’No Claim Bonus’ percentage then you are entitled to the same NCB discount when buying your new car and this translates to immediate and future savings which are substantial if you ask me. I saved almost Rs.5000/- in insurance this way. And in subsequent years I will be paying less too. This is something that no car-dealer or salesman will ever mention to you.
Same way always insist on Comprehensive Insurance Policy transferred to your name when you opt for a second hand car from the market - Get smart guys !
One more thing. When you sell your vehicle and sign the TT papers, ensure that you write the current date clearly. Because these transfer papers are valid for 15 days only and if you have recieved full payment for your vehicle the buyer will have to get them transferred within 15 days. This is important because second-hand cars can be misused for wrong purposes also. And its still your car - registered in your name till it is officially transferred to the buyers name in RTO records- So Beware ! If the buyer were to meet with an accident and if you have already transferred your insurance to your name and the vehicle is still not transferred you are in for an un-imaginable nightmare with endless possibilities.
Whew ! That took me an hour at a stretch to write. I hope I have been able to help - maybe if you guys come up with things I left out, let me know, I will be only too happy to help. Besides your feedback also educates me.
Did I hear someone ask, which car did I opt for - well, I’ll keep you guessing for the moment - ’cause I sure do intend to write a review on why I chose that particular one and how it fared so far. Till then, Adios Amigos !
Regards
Raja(c)
All rights reserved