Car manufacturers are expecting a revision in cash reserve ratio that would again leap the interest on car loan offered by private banks and other financial institutions. The issue may get cleared after the Reserve Bank of India reviews its monetary policy at the end of this month.
With these expectations, car manufacturers are pushing car sales. At present, the car loan interest rate is 15% that gives a monthly installment of Rs 2,350 per lakh. If by this month end, the interest rate increases, then the loan interest will nearly touch 16% resulting in a monthly installment of nearly Rs 2,395 per lakh for the same tenure.
In order to cope up with the expected rise in interest rates, car manufacturers have put in their heads and hearts to wrap up the deal, remold marketing strategies, and compel waning customers.
They are offering attractive discounts and schemes but no freebies to lure customers. They are simply trying to strengthen their internal channels and extend sales with existing customers.
Labels: Car-Loan, Car-Manufacturers, Finance
2 Comments:
This means that if the cash reserve ratio is revised, then I need to pay an extra amount of Rs 45 per lakh. Since past four months, I am planning to buy a car, every time I make up my mind; a new obstacle comes on the road in the form of hike, rise or inflation. First, rise in petrol prices stopped me from buying a car, and then high interest rate made a halt and now revision in cash reserve ratio. I thought the inflation will go down in next few months but now I think the car prices will keep on increasing. I should now make a move otherwise I may end up buying a costly base model.
I agree with Ragdhika even i am undergoing the same situation. I am planning to buy a car and finally there are some obstacles coming on the way. This is really effecting the buyers as well as the car manufacturers. I dont understand why so many problems are arising in the Indian market. At last no one will be profitable nor the buyer, the manufacturer, nor the Government. The interest rates are so high that one cant even think of financing the car.
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