Right Time to Buy Cars
There’s good news for car buyers! For all those who were planning to buy cars and were pushed back by inflation and high car loan rates, have now got a perfect time to rejoice.
You can now make up your mind to buy a new car. RBI has reduced the repo rate by 100 basis points and this must have given a sigh of relief to all those who were continuously stressed under spiraling car loan interest rates. This will definitely improve the status of liquidity crunch in the finance market and boost the sentiments and aspirations of Indian car consumers.
With this, the car sales are expected to push up and the piled car stocks will be reduced. Expensive financing will not restrict the consumers from buying a new car anymore. So what do you say, will softening of the interest rate push car sales? Will people prefer buying new cars now?
Labels: Car-Loan, Car-Sales, New-Car
Car Loan Interest Rates Climbs Higher
With inflation remaining double digits for consecutive six weeks, RBI plans to tighten its monetary policy. The policy has a direct impact on the interest rates. Oops! Another setback for the car manufacturers.
Car manufacturers are now really frightened with the continuous increase in fuel prices as well as the interest rates. Now all the heart goes down.
Are
car manufacturers still strong and powerful to face this obstacle and win over the challenge? The Indian car industry is going down with low economic gains.
This is the third time in the calendar year 2008 and the second time in the current month that the interest rates have climbed up. The current repo rate, rate at which Central Government lends money to the banks, has been increased by half a percentage point and the cash reserve ratio, cash that bank puts aside, has been increased by 0.25 percentage point.
A
car loan amount of Rs 3 lakh for a period of three years will have a higher EMI of Rs 73. Car loan for a period of five years, will have an EMI of extra Rs 79 and the loan taken for 7 years will have an additional amount of Rs 84 in the EMI.
The things are becoming worse day by day. When will this inflation end? Who will bring an end? What and when is the next hike in interest rates? Who knows?
Labels: Car-Finance, Car-Loan, Car-Manufacturers
Car Manufacturers Push Sales
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
Cheap Car but Expensive Loan
Nano ready to roll out with expensive loans! Tata’s newest and cheapest car is ready to roll out on Indian roads. The car has brought a great threat to car financers.
It is believed that for a car of Rs 1 lakh, none of the well-off people will apply for car loan. The loan applicants will include people with much lower incomes and the number would definitely be high. Most of the private financers have decided not to finance the Nano.
The interest rate of the Nano car loan is expected to be about 18%. The company proposed the design and production of this car for the people who can’t afford high priced cars. But the increased loan interest is compensating for the low cost price.
Don’t you think it’s again a big demarcation between the rich and poor? This is an expected delinquency during the launch. Rest, let’s wait and watch!
Labels: Car-Loan, Nano
