new car purchase
With a never-ending stream of automotive launches and a plethora of financing options to choose from, it is now easier than ever before to buy a new car. Be warned, however: your urge to buy also makes it easy for financial companies to fleece you. Competition is fierce in the automotive market; be sure to use it to your advantage.
Team-BHP shows you how to get the best possible financing deal for your shiny new wheels:
1. Shop around: While this advice seems obvious, it is often ignored: getting rates from several brokers and car dealerships is the key to a good deal. If you intend to buy a Honda in Mumbai, bargain with Ichibaan / Linkway / Arya and any others. When you ask for your quote, tell the vendor that you intend to shop around and be certain that they know you are serious about buying. Casual inquiries take up a lot of time for dealers; an inquiry with good sales potential will make them bend over backwards for you.
2. Negotiate: Many people don't realize this, but if you want a great financing deal you will have to negotiate for it. Negotiate hard. Pit at least three competing quotes against each other and start bargaining with each vendor. You will be surprised at how quickly the offered equalized monthly installment (EMI) payment will drop in the course of an hour of simple bargaining. And its a LOT of fun too!
3. Targets: Start negotiating in the third week of the month. Most Indian agents have monthly targets and generally save the best rates for last minute deals to fill their quota.
4. Other accounts with the same institution: Leverage any existing relationship (credit cards, investments, etc) that you have with your financial institution. Most banks will offer a 1 - 2% discount based on the fact that you are already a known quantity to them.
5. Do not take the interest rate at face value: When your broker says that his great interest rate has been calculated "just for you", you don't have to take his word for it. Use any one of a number of online calculators to compare; chances are, your broker is bluffing.
6. Manufacturer financing plans: Some manufacturers offer financing plans that are less expensive than broker or dealership options. For e.g. the Tata finance option.
7. Nationalised banks: Nationalised banks like the State Bank of India have very competitive auto-loan packages that usually offer the best rates and terms, especially if you have an existing relationship with them. Meet with your branch manager for a quote.
8. Hidden fees: In today's competitive market there is no such thing as a processing fee for a car loan. Ask for an all-inclusive quote and check the fine print for hidden charges. These miscellaneous fees can amount to thousands of rupees. You will also see a difference in stamp duty charges etc. from one proposal to the other.
9. Do NOT opt for ECS: Even though automatic electronic withdrawal from your bank account is supposed to make life easier, the system is not yet a 100% reliable in India. Make your loan payments the old-fashioned way with cheques and read the Team-BHP forum discussion on ECS for more details.
10. Be wary of unauthorised dealerships: Even if you get a great financing offer, check to see who will be delivering your car. Some Direct Sales Agents (DSAs) have connections to unauthorised dealerships. These dealers often engage in shady practices like supplying counterfeit spares and are generally not worth buying from.
11. Pre-payment penalties: Some banks charge rates as high as 5% of the total loan amount if you pay off your loan early. Check to see if your bank included a pre-payment penalty in the contract and ask for a waiver / reduction if you intend to pay the loan early.
12. Maintain a good credit history: Financial institutions in India maintain a central database to keep track of your credit history. It is essential to keep a clean credit record by paying credit card bills and other loan EMIs on time.
13. Loan against fixed deposits: If you or your family has invested in fixed deposits, you are in luck. Taking a loan against fixed deposits leads to very lucrative interest rates, minimal paperwork (if at all) and flexible repayment plans. Banks usually give loans against fixed deposits at a +1 interest rate. Click here (Car Loan against Fixed Deposits) to read the full discussion on this subject.
Happy hunting for the lowest EMI!
EDIT : Added a superb "Loan Amortization Schedule" excel sheet to this post; members can download the same. Thanks to BHPian nikunj_cal for sharing it with us. It will help you to calculate the EMI for different loan amounts, juggle between interest rates, calculate total interest, calculate foreclosure charges and so on.
http://www.bankofbaroda.com/calculators/calculators.asp
This link will help you to calculate your exact EMI based on tenure and rate of interest.
you can calculate using formula too
EMI = {(p*r) (1+r)^n}/{(1+r)^n - 1}
p = principal (amount of loan), r = rate of interest per instalment period, i.e., if interest is 12% p.a. r = 1, n = no. of instalments in the tenure,Y ou can also use `Calculate EMI function' in EXCEL spread sheet.
===============================================================================
Every banks which have their online presence also have their emi calculators.
http://www.hdfc.com/calculator/emical.asp
I have used this HDFC bank's caculators for my deal. My dealer said he is giving me a loan from HDFC bank and said that he would give me a certain emi at interest rate of 13%. When I check the site and tried out the emi calculator it seemed that the deal that he was offering me for 13% actually was an emi for 14.75%.
I brought this to his notice and we then negotiated to get the rate of interest down to 13.75% and would not come anything below that.
Man, these dealers are like sharks. Beware of them. I have also created a excel sheet to calculate but would like to know how do I post the attachement in this thread.
===============================================================================
It is 100% true that we have credit history in India. When I took my SBI car loan, the verification guy came armed with all my previous borrowings details on my flat and my two wheeler. He even knew where the upcoming flat was located and exact details of my loan payments. I was like shot at point blank. All banks share their data to ensure that defaulters are kept at bay.
==================================================================================================
Btw one more point that I would like to say from my own experience is that don’t pay much attention to what interest rates different agents tell you, I would say you should negotiate on EMI per lac. The reason I am saying this is because when my cousin was hunting for a new car The EMI per lac for loan 14% was surprisingly coming out to be cheaper than other company's loan at 12.5%.
& yes always consider how good the bank is while closing the loan because that’s where the problem is faced.
GTO not sure why ECS is not recommended as I have been using since 2-3 years now & never faced any issue or may be I was Lucky
==================================
Team-BHP shows you how to get the best possible financing deal for your shiny new wheels:
1. Shop around: While this advice seems obvious, it is often ignored: getting rates from several brokers and car dealerships is the key to a good deal. If you intend to buy a Honda in Mumbai, bargain with Ichibaan / Linkway / Arya and any others. When you ask for your quote, tell the vendor that you intend to shop around and be certain that they know you are serious about buying. Casual inquiries take up a lot of time for dealers; an inquiry with good sales potential will make them bend over backwards for you.
2. Negotiate: Many people don't realize this, but if you want a great financing deal you will have to negotiate for it. Negotiate hard. Pit at least three competing quotes against each other and start bargaining with each vendor. You will be surprised at how quickly the offered equalized monthly installment (EMI) payment will drop in the course of an hour of simple bargaining. And its a LOT of fun too!
3. Targets: Start negotiating in the third week of the month. Most Indian agents have monthly targets and generally save the best rates for last minute deals to fill their quota.
4. Other accounts with the same institution: Leverage any existing relationship (credit cards, investments, etc) that you have with your financial institution. Most banks will offer a 1 - 2% discount based on the fact that you are already a known quantity to them.
5. Do not take the interest rate at face value: When your broker says that his great interest rate has been calculated "just for you", you don't have to take his word for it. Use any one of a number of online calculators to compare; chances are, your broker is bluffing.
6. Manufacturer financing plans: Some manufacturers offer financing plans that are less expensive than broker or dealership options. For e.g. the Tata finance option.
7. Nationalised banks: Nationalised banks like the State Bank of India have very competitive auto-loan packages that usually offer the best rates and terms, especially if you have an existing relationship with them. Meet with your branch manager for a quote.
8. Hidden fees: In today's competitive market there is no such thing as a processing fee for a car loan. Ask for an all-inclusive quote and check the fine print for hidden charges. These miscellaneous fees can amount to thousands of rupees. You will also see a difference in stamp duty charges etc. from one proposal to the other.
9. Do NOT opt for ECS: Even though automatic electronic withdrawal from your bank account is supposed to make life easier, the system is not yet a 100% reliable in India. Make your loan payments the old-fashioned way with cheques and read the Team-BHP forum discussion on ECS for more details.
10. Be wary of unauthorised dealerships: Even if you get a great financing offer, check to see who will be delivering your car. Some Direct Sales Agents (DSAs) have connections to unauthorised dealerships. These dealers often engage in shady practices like supplying counterfeit spares and are generally not worth buying from.
11. Pre-payment penalties: Some banks charge rates as high as 5% of the total loan amount if you pay off your loan early. Check to see if your bank included a pre-payment penalty in the contract and ask for a waiver / reduction if you intend to pay the loan early.
12. Maintain a good credit history: Financial institutions in India maintain a central database to keep track of your credit history. It is essential to keep a clean credit record by paying credit card bills and other loan EMIs on time.
13. Loan against fixed deposits: If you or your family has invested in fixed deposits, you are in luck. Taking a loan against fixed deposits leads to very lucrative interest rates, minimal paperwork (if at all) and flexible repayment plans. Banks usually give loans against fixed deposits at a +1 interest rate. Click here (Car Loan against Fixed Deposits) to read the full discussion on this subject.
Happy hunting for the lowest EMI!
EDIT : Added a superb "Loan Amortization Schedule" excel sheet to this post; members can download the same. Thanks to BHPian nikunj_cal for sharing it with us. It will help you to calculate the EMI for different loan amounts, juggle between interest rates, calculate total interest, calculate foreclosure charges and so on.
http://www.bankofbaroda.com/calculators/calculators.asp
This link will help you to calculate your exact EMI based on tenure and rate of interest.
you can calculate using formula too
EMI = {(p*r) (1+r)^n}/{(1+r)^n - 1}
p = principal (amount of loan), r = rate of interest per instalment period, i.e., if interest is 12% p.a. r = 1, n = no. of instalments in the tenure,Y ou can also use `Calculate EMI function' in EXCEL spread sheet.
===============================================================================
Every banks which have their online presence also have their emi calculators.
http://www.hdfc.com/calculator/emical.asp
I have used this HDFC bank's caculators for my deal. My dealer said he is giving me a loan from HDFC bank and said that he would give me a certain emi at interest rate of 13%. When I check the site and tried out the emi calculator it seemed that the deal that he was offering me for 13% actually was an emi for 14.75%.
I brought this to his notice and we then negotiated to get the rate of interest down to 13.75% and would not come anything below that.
Man, these dealers are like sharks. Beware of them. I have also created a excel sheet to calculate but would like to know how do I post the attachement in this thread.
===============================================================================
It is 100% true that we have credit history in India. When I took my SBI car loan, the verification guy came armed with all my previous borrowings details on my flat and my two wheeler. He even knew where the upcoming flat was located and exact details of my loan payments. I was like shot at point blank. All banks share their data to ensure that defaulters are kept at bay.
==================================================================================================
Btw one more point that I would like to say from my own experience is that don’t pay much attention to what interest rates different agents tell you, I would say you should negotiate on EMI per lac. The reason I am saying this is because when my cousin was hunting for a new car The EMI per lac for loan 14% was surprisingly coming out to be cheaper than other company's loan at 12.5%.
& yes always consider how good the bank is while closing the loan because that’s where the problem is faced.
GTO not sure why ECS is not recommended as I have been using since 2-3 years now & never faced any issue or may be I was Lucky
==================================
Must-have Accessories for your new car
With a plethora of accessory options available at dealerships (authorised and after-market), choosing the right add-ons can get confusing. Team-BHP enlists the “must-have” accessories for your new car.
Do keep in mind that car dealerships make a killing on their high-priced accessory fittings alone. We recommend buying most of your add-ons from the after-market. However, quality (of product and installation) is very crucial to some accessories, especially the electronic variety.
Interior Enhancement:
1. Mats: Floor mats and a Dicky mat.
2. High quality Sun film: This helps to protect the interiors and occupants from the extreme climatic conditions.
3. Seat Covers: We recommend art leather for its value.
4. Audio System installation / upgrade: If required.
5. Air-freshener: Keeps the interiors smelling fresh. Scroll-type fresheners which fit on the air-con louvers are very popular and effective.
Safety / Security:
1. Remote-locking security system: Not only for the added security, but also for convenience.
2. Steering Grip lock / Gear Lock: Great way of theft prevention.
3. Headlight bulb upgrade: Only if stock bulbs are inadequate. Upgrade headlight bulbs to more powerful ones with the appropriate relay and wiring.
4. Mirror Lock: Some cars require this to prevent theft of standard wing mirrors.
Precautionary Measures:
1. Fire Extinguisher: Can save you and your car in the event of an electrical short-circuit etc.
2. Tyre / Puncture repair kit: A must for highway travelers.
3. Fog lights: They aid driving in foggy conditions, and provide a life-saving backup if the headlights malfunction.
4. Comprehensive Tool Kit: Standard tool kits are always minimalistic, so get one that is as comprehensive as a swiss army knife.
5. Extra fuses: For crucial parts such as the headlight, starter etc.
Tyres / Alloys
1. Tyre Upgrade: Some models of cars come severely under-tyred from the factory. We would highly recommend you to upgrade your tyres to a more appropriate size. You can do this straight from the showroom to get the best exchange price. Link :
2. Alloy Wheels: If the budget permits.
Others:
1. High quality cleaning cloth
2. Branded wax polish
3. Car Cover
4. Parking Sensors
5. Child Seat
NOTE:
• There may be some accessories which are car specific. For e.g. quarter glass security grilles in a Maruti 800.
• Team-BHP does NOT recommend Teflon coating for several reasons.
Do keep in mind that car dealerships make a killing on their high-priced accessory fittings alone. We recommend buying most of your add-ons from the after-market. However, quality (of product and installation) is very crucial to some accessories, especially the electronic variety.
Interior Enhancement:
1. Mats: Floor mats and a Dicky mat.
2. High quality Sun film: This helps to protect the interiors and occupants from the extreme climatic conditions.
3. Seat Covers: We recommend art leather for its value.
4. Audio System installation / upgrade: If required.
5. Air-freshener: Keeps the interiors smelling fresh. Scroll-type fresheners which fit on the air-con louvers are very popular and effective.
Safety / Security:
1. Remote-locking security system: Not only for the added security, but also for convenience.
2. Steering Grip lock / Gear Lock: Great way of theft prevention.
3. Headlight bulb upgrade: Only if stock bulbs are inadequate. Upgrade headlight bulbs to more powerful ones with the appropriate relay and wiring.
4. Mirror Lock: Some cars require this to prevent theft of standard wing mirrors.
Precautionary Measures:
1. Fire Extinguisher: Can save you and your car in the event of an electrical short-circuit etc.
2. Tyre / Puncture repair kit: A must for highway travelers.
3. Fog lights: They aid driving in foggy conditions, and provide a life-saving backup if the headlights malfunction.
4. Comprehensive Tool Kit: Standard tool kits are always minimalistic, so get one that is as comprehensive as a swiss army knife.
5. Extra fuses: For crucial parts such as the headlight, starter etc.
Tyres / Alloys
1. Tyre Upgrade: Some models of cars come severely under-tyred from the factory. We would highly recommend you to upgrade your tyres to a more appropriate size. You can do this straight from the showroom to get the best exchange price. Link :
2. Alloy Wheels: If the budget permits.
Others:
1. High quality cleaning cloth
2. Branded wax polish
3. Car Cover
4. Parking Sensors
5. Child Seat
NOTE:
• There may be some accessories which are car specific. For e.g. quarter glass security grilles in a Maruti 800.
• Team-BHP does NOT recommend Teflon coating for several reasons.
Hyundai i10
Engines
i10 iRDE 1.1: The i10 was launched with a 1.1
litre (called iRDE engine) 65 bhp (48 kW; 66 PS) I4 engine - the same motor
used in the Kia Picanto/Hyundai Atos Prime/Santro Xing. However, it produces
less CO2 emissions than the Picanto.
i10 Diesel:
A 1.1 litre 3-cylinder diesel CRDi variant is available in Europe but has not
yet been introduced into the UK and Indian market.
i10 Electric: Hyundai recently launched i10 Electric in Delhi Auto Expo and is expected to be available in India by 2011. The i10-based electric car is called BlueOn.
In 2010 Hyundai launched a facelifted version of the i10 in India which uses a Kappa 2 engine with VTVT Technology to further improve performance of this engine. Hyundai engineers have taken the existing 1.2-litre 4-cylinder Kappa engine and added VTVT (Variable Timing and Valve Train). The i10 is the first small car in the country to receive variable valve timing making it, on paper at least, the most sophisticated 1.2-litre engine in its segment (the Honda Jazz also has an i-VTEC head but is a segment higher). This system, working on the intake side, helps in altering the valve timing and lifts according to the situation and thus improves low-end responses and fuel efficiency. VTVT hasn’t increased the horsepower and it is still rated at 80 PS (59 kW; 79 hp). However the engine is reported to feel more refined and show very little vibration at higher revs
Accolades and feats
Hyundai i10 was widely recognized as "Car of the Year 2008" by various automotive magazines and TV channels in India like BS Motoring, CNBC-TV18 AutoCar,[3] NDTV Profit Car & Bike India and Overdrive magazine. The car was conferred with the Indian Car of the Year (ICOTY) by automotive media of the country.
In Malaysia the Hyundai i10 has also earned recognition through many awards such as the Best People's Car in the Asian Auto – VCA Auto Industry Awards 2009,[6] 1st Place in Asian Auto-Mudah.my Fuel Efficiency Awards 2009 in the Compact City Cars Category with a combined fuel efficiency of 5.0l/100 km, which is not only the best performance in its category but also throughout all the participating vehicles in Malaysia. The Hyundai i10 also won the New Straits Times / Maybank Car of the Year Award in the Entry Level Car category two times consecutively in 2009 and 2010.
In 2008, Hyundai commemorated 10 years of operations in India by initiating a transcontinental drive from Delhi to Paris in two of its i10 Kappa cars. The drive covered a distance of 10,000 kilometres (6,200 mi) in just 17 days after which the i10s were showcased at the Paris Motor Show in October.[10] At the Paris Motor Show Hyundai unveiled the Hyundai i20.
Safety
The i10 features ABS, EBD and other safety features, which earned it high scores on the Euro NCAP crash tests.
Adult Occupant: 4/5 stars, score 26
Child Occupant: 4/5 stars, score 37
Pedestrian: 3/4 stars, score 21
The amount of safety features varies from market to market. While most countries have the i10 equipped with airbags for all passengers, the entry-level 1.1 manual transmission model in the Philippines can be sold without airbags.
Since launch and as of August 2009, electronic stability control (ESC) is still a special-order option for UK spec cars which prevents a full 5-star EuroNCAP score.
India
After the huge success of Hyundai Santro, India’s second largest auto manufacturer Hyundai Motor Co launched Hyundai i10 in same hatchback segment and it has gained much popularity in Indian market since its launch in 2007. Hyundai i10 is a premium hatchback segment model that takes place between Hyundai Santro and Hyundai Getz. Offering quality and equipment for the customers is the key priority of Hyundai i10.
In India Hyundai i10 is available with nine variants, and with two different engine options. Two variants (D-lite and Era) of Hyundai i10 are equipped with 1.1L, 1086 cc, IRDE (Intelligent Responsive Drive Engine) petrol engine with manual transmission gearbox. This engine produces 66.7 PS (49 kW; 66 hp) of maximum power at 5500 rpm and maximum torque of 10.1 kg·m (99 N·m; 73 lb·ft) at 2500 rpm. HMIL (Hyundai Motor India Ltd) makes the Hyundai i10 price very competitive in the Indian auto market. Car is available in 3.5 to 5 lakh range and it is giving very tough competition to all other cars of this segment.
The rest seven variants of Hyundai i10 are powered by its popular 1.2L, 1197 cc, Kappa engine produces the 80 PS (59 kW; 79 hp) of maximum power at 5200 rpm and 11.4 kg·m (112 N·m; 82 lb·ft) of maximum torque at 4000 rpm. This Kappa engine is well known for offering high engine performance with better fuel efficiency.
Hyundai i10 models
After the huge success of Hyundai Santro, India’s second largest auto manufacturer Hyundai Motor Co launched Hyundai i10 in same hatchback segment and it has gained much popularity in Indian market since its launch in 2007. Hyundai i10 is a premium hatchback segment model that takes place between Hyundai Santro and Hyundai Getz. Offering quality and equipment for the customers is the key priority of Hyundai i10.
In India Hyundai i10 is available with nine variants, and with two different engine options. Two variants (D-lite and Era) of Hyundai i10 are equipped with 1.1L, 1086 cc, IRDE (Intelligent Responsive Drive Engine) petrol engine with manual transmission gearbox. This engine produces 66.7 PS (49 kW; 66 hp) of maximum power at 5500 rpm and maximum torque of 10.1 kg·m (99 N·m; 73 lb·ft) at 2500 rpm. HMIL (Hyundai Motor India Ltd) makes the Hyundai i10 price very competitive in the Indian auto market. Car is available in 3.5 to 5 lakh range and it is giving very tough competition to all other cars of this segment.
The rest seven variants of Hyundai i10 are powered by its popular 1.2L, 1197 cc, Kappa engine produces the 80 PS (59 kW; 79 hp) of maximum power at 5200 rpm and 11.4 kg·m (112 N·m; 82 lb·ft) of maximum torque at 4000 rpm. This Kappa engine is well known for offering high engine performance with better fuel efficiency.
Hyundai i10 models
Hyundai i10 D-lite It is the base variant of Hyundai i10 that comes with 1.1L, IRDE engine but it does not offer few standard features like Adjustable Steering Wheel, Central Locking, Power Windows, Wheel Covers, Tachometer, CD/MP3 Player, Fog Lamps and Body Colored Bumpers.
Hyundai i10 Era This variant also comes with
comes with 1.1L, IRDE engine it also carry few additional features that are
Central Locking, Power Windows (Front) and Body Colored Bumpers.
Hyundai i10 Magna This variant comes with new
Kappa engine. It also carries few additional features like Adjustable Steering
Wheel, Wheel Covers and Tachometer.
Hyundai i10 Magna AT This variant of Hyundai i10
carries the same feature that Hyundai i10 Magna offers, only the difference is
that it comes with automatic transmission.
Hyundai i10 Sportz This variant of Hyundai i10
also carries Kappa engine and the additional features that this variant offers
are CD/MP3 Player, Rear Defogger, Rear Wash Wipe etc.
Hyundai i10 Sportz AT This variant of Hyundai i10
carries the same feature that Hyundai i10 Sportz offers, only the difference is
that it comes with automatic transmission.
Hyundai i10 Asta This variant also carries
the advanced Kappa engine. The additional features that this variant offers are
Remote Locking, Fog Lamps, ABS and Dual Front Airbags.
Hyundai i10 Asta w/Sun Roof
It is the top end variant of Hyundai i10 that carries the
same feature that
Hyundai i10 Asta offers, only the difference
is that it comes with Sun Roof.
Hyundai i10 Asta AT This variant carries the
same feature that Hyundai i10 Asta w/Sun Roof offers, only the difference is
that it comes with automatic transmission.
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