Be prepared to shell out more on your auto loans now. Banks, these days, are busy revising their auto loan rates and set to increase the interest rates. This comes soon after the Reserve Bank of India hiked the repo and reverses repo rates.
This comes soon after two consecutive hikes in car prices and a 50-75 basis point hike in interest rates by banks like HDFC Bank and Kotak Mahindra Prime with effect from March 1 this year. The combined effect of these hikes on car prices would vary from Rs 5,000 and Rs 50,000, depending on the models you decide to purchase.
While rising costs of inputs prompted the first hike in car prices, the second increase came as an immediate reaction to the Union Budget. The increased excise duty on cars by 2 per cent as part of an initiative for a partial rollback of the stimulus and an increase in fuel prices has prompted the move.
First came the increase in excise duties which increased the car prices and now the increased interest rates. But this is not exactly the worst situation because it has the potential to worsen further if the new emission laws come in effect from April 1, 2010.
The interest rates on auto loans had been kept low for the entire current fiscal and the first hike took place in March. Despite that the current interest rates on cars are lower than that in April last year. While the current rates vary between 10.5 per cent and 11.5 per cent, it was around 12.5 per cent in April 2009.
But industry experts are of the view that the growth momentum will continue in March, which as seen a few new launches in the compact car segment.
“The low base of last year as well as a slew of new launches and an enhanced focus on rural sales will ensure that growth will continue to be robust in March at around 25 per cent vis-à-vis last year,” Abdul Majeed, analyst and partner, Price Waterhouse said.
This comes soon after two consecutive hikes in car prices and a 50-75 basis point hike in interest rates by banks like HDFC Bank and Kotak Mahindra Prime with effect from March 1 this year. The combined effect of these hikes on car prices would vary from Rs 5,000 and Rs 50,000, depending on the models you decide to purchase.
While rising costs of inputs prompted the first hike in car prices, the second increase came as an immediate reaction to the Union Budget. The increased excise duty on cars by 2 per cent as part of an initiative for a partial rollback of the stimulus and an increase in fuel prices has prompted the move.
First came the increase in excise duties which increased the car prices and now the increased interest rates. But this is not exactly the worst situation because it has the potential to worsen further if the new emission laws come in effect from April 1, 2010.
The interest rates on auto loans had been kept low for the entire current fiscal and the first hike took place in March. Despite that the current interest rates on cars are lower than that in April last year. While the current rates vary between 10.5 per cent and 11.5 per cent, it was around 12.5 per cent in April 2009.
But industry experts are of the view that the growth momentum will continue in March, which as seen a few new launches in the compact car segment.
“The low base of last year as well as a slew of new launches and an enhanced focus on rural sales will ensure that growth will continue to be robust in March at around 25 per cent vis-à-vis last year,” Abdul Majeed, analyst and partner, Price Waterhouse said.
Thanks for Sharing the Information, and keep Working like that!
Truly interesting post as for me. It’d be just great to read a bit more about that matter. Thnx for giving this info.
Good Weblog I have simply started my very own free press release website so if you need to arrange a release to promote this just shout and I’ll be very happy to help.
Thank you, I love it. agreed?
Thanks for sharing thoughts! so informative it was for me as I was facing some financial problems.
——————–
maryscott
Really it was very interesting for me to read this article. Thanx for it. I like such topics and anything connected to this matter. I would like to read more soon.
Appreciate your finding the time go over this, I feel strongly about this and love learning read more about this topic. If at all, because you gain expertise, on earth do you mind updating your blog with an increase of information? It is very helpful to do.
What was my enchantment to come accross an article like this. Direct my favorites! See you soon !
Wow, thanks a bunch m8
What I believe with this post is its quite an in-dept write-up indeed. I’m thinking about this article and would like to understand more about this. Are you able to elaborate much more about the subject by providing some instance or other info that’s associated to this?