Car Downpayment Options


Thread Starter #1
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Hi team,

my friend has taken a loan of 2 lakh and rest two he is paying down payment.

what should be the ratio of downpayment

what are the best/safest methods to make down payment to the dealer.

kindly require good advice on same
 
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The maximum car loan one can get is 80% or 83% (I dont remember properly). I would suggest if one have money then one should take less amount for car loan. As car is depreciating asset and loan interest rates are higher. But then the question arise of maintaining liquidity in case of emergency.

Then I would suggest to look at SBI Car loan with Overdraft facility.

There is no thumb rule of what percentage should be down payment and what percentage should be loan amount. It purely depends on how much cash you have and how much you can pay monthly as EMI.
 
Thread Starter #3
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The maximum car loan one can get is 80% or 83% (I dont remember properly). I would suggest if one have money then one should take less amount for car loan. As car is depreciating asset and loan interest rates are higher. But then the question arise of maintaining liquidity in case of emergency.

Then I would suggest to look at SBI Car loan with Overdraft facility.

There is no thumb rule of what percentage should be down payment and what percentage should be loan amount. It purely depends on how much cash you have and how much you can pay monthly as EMI.
dharmesh as per original query

for example am making down payment of 2lac

should I make all in cash or partly cheque or completely RTGS

are there any implications if I follow either of the routes
 
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dharmesh as per original query

for example am making down payment of 2lac

should I make all in cash or partly cheque or completely RTGS

are there any implications if I follow either of the routes
It does not matter how you make the payment, until you get receipt of the same. But I would suggest you to do so VIA RTGS or cheque (if it is white money). [;)]
 
Thread Starter #5
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It does not matter how you make the payment, until you get receipt of the same. But I would suggest you to do so VIA RTGS or cheque (if it is white money). [;)]
yep all white money dude [:)]

so can I give a straight cheque of 2lac

does dealer wait for cheque to be cleared ?

is there a law something like it says subject to realization or something ?
 
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When you pay by cheque normally the dealer will wait for the cheque to be cleared before giving delivery. In some conditions ,where the dealer knows the customer very well or the cheque is from a company the vehicle is released on getting cheque and the loan advice from the financier.

You have not mentioned about the status of your loan approved or in process.
So ,here you have two lacs with you. You have the balance in loan (already approved by bank). If both these together makes the On road price of the car after your discounts you can take the delivery of the car. Why should you pay in cheque? You can give cash and take the car without waiting.
 
Thread Starter #7
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When you pay by cheque normally the dealer will wait for the cheque to be cleared before giving delivery. In some conditions ,where the dealer knows the customer very well or the cheque is from a company the vehicle is released on getting cheque and the loan advice from the financier.

You have not mentioned about the status of your loan approved or in process.
So ,here you have two lacs with you. You have the balance in loan (already approved by bank). If both these together makes the On road price of the car after your discounts you can take the delivery of the car. Why should you pay in cheque? You can give cash and take the car without waiting.
hey Max,

loan is already approved for 2 lac and the rest 2 lac am planning to pay by RTGS.

so that I have some proof that I have paid the dealer eventhough I get the receipt of either of them

cash or rtgs

also what all documents do I need to get photo copied for my paperwork and proof which I actually don't get in hand.

this is my first purchase so I just want to be aware that am going the right direction
 
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In case the loan is being processed from the same bank you have your account with, you can opt for adjusting the dwnpayment amount through the bank itself . You ask the bank to debit the dwnpayment amount from your account and bank will pay the invoice value to the dealer.
 
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Hello, I have a doubt regarding the car loan. I have a SBI account in my home town branch. So here in Bangalore if I need to apply for a car loan do I need to transfer the SBI acc to bangalore, or start a new account with any of the Bangalore branches?
 
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As per SBI or any other nationalized banks they will give loan if you have an account in the respective bank. Since you want a car in Bangalore ,its advised to have an account in Bangalore.If you are salaried person your salary must be credited to this account .I would suggest to start a new one at the earliest, as the one in your home town may be of some use later.
 
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I am planning to go for a loan. But not decided on the car. I am not sure whether I will get the amount that I asked for. If not, then I need to downsize my options. I have few queries :

1) Can the dealer cancel the performance Invoice if I am not going for that car ?
2) If I don't get the loan for the desired amount for the desired vehicle, then can I reapply for a different model and for a different manufacturer / dealer with a different Invoice ?
3) What are the other precautions do we need to follow ?
4) Dealer asking me to pay the booking amount. How will I pay without knowing the loan I am eligible for ?
5) What will be the entire process that needs to be done between the dealer and bank ? I am going directly through bank and not through dealer. Is there any checklist to list the process in order ( Like a PDI document ) ?

Thanks

Please guide.
 
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I would suggest you to visit bank and get your eligibility known, based on which you can decide on car's make and model. This will answer your points 1 to 3. Check with yourself if you need to go ahead of your sanctioned eligibility then how much can you down-pay by yourself.

The booking amount is other name of token amount. You need to check with dealer whether it is 100% refundable in case of cancellation. Some dealers give you your amount by deducting penalty of some 18-20% if your cancel your booking.
 

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