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autowhiz 2nd March 2015 06:48 PM

My First Car - Loan and Insurance Queries
 
Hello Folks,
I have finalized my first car - Hyundai Grand i10 Petrol Asta (O). But I am complete newbie to purchasing a car and have got a few queries some of which might sound silly.

1) How much is the current interest rates for a fixed interest loan in Chennai? The ex-showroom (Chennai) price is coming to Rs.5.92 lakhs and the On-road price is coming to around Rs.6.81 Lakhs. I am planning to make a down-payment of Rs.3.81 lakhs and balance 3 lakhs will be my loan amount for a period of 2 years.

2) If I take the loan from my existing bank where I hold a current account, how would the loan payment be given to the car dealership? I know it sounds silly but I don't know how there will be communication between my bank and the car dealer.

3) Should I go for ECS or the old practice of PDS cheques? What precautions should I take before handing over the PDC cheques as these banks might trouble me when I need to get the NOC after the loan is paid fully?

3) Which company's car insurance should I take? Tata AIG or Bharathi Axa, Bajaj Allianz and some more are the options. Which one is recommended? I got a qoute from Tata AIG for a Comprehansive Insurance + zero depreciation cover (bumper to bumper insurance) + 3rd party insurance + some other addons like Key replacements, personal accicental cover of Rs. 2,00,000 etc etc for a premium of Rs.15780. Is the qoute correct?

The car dealership has qouted around 20K for the comprehensive insurance without zero dep addon from Bharathi Axa which I think is high.

4) They (Tata Aig insurance) are taking the IDV as 5% less than the ex-showroom price right from day 1 when the car is bought. Is that normal?

5) Again this policy is being taken directly from Tata AIG and not from the car dealer. So how will the car be insured and who will handle all the documentation? Will the car dealer allow this?

6) How do I calculate the Reg Fee, Road tax etc from the Ex-showroom price? My Dealer is qouting Rs. 70K for this.

Any help or suggestions will be appreciated.

Akash1886 2nd March 2015 07:15 PM

Re: My First Car - Loan and Insurance queries
 
Quote:

Originally Posted by autowhiz (Post 435894)
I have finalized my first car - Hyundai Grand i10 Petrol Asta (O). But I am complete newbie to purchasing a car and have got a few queries some of which might sound silly.

Certainly not buddy. First car is always special one! Congrats![:)]

Quote:

2) If I take the loan from my existing bank where I hold a current account, how would the loan payment be given to the car dealership? I know it sounds silly but I don't know how there will be communication between my bank and the car dealer.
Amount will be paid by a DD of the On-Road Price addressed to the concerned dealer.

Quote:

3) Should I go for ECS or the old practice of PDS cheques? What precautions should I take before handing over the PDC cheques as these banks might trouble me when I need to get the NOC after the loan is paid fully?
I would say ECS is ok, else you'll have to deposit a cheque every month for the EMI. Also, Is the bank asking you for any PDC as surety? Some banks take PDC so that they can deduct the pending EMI later if by chance there is insufficient balance in bank account at the start of month.

Quote:

3) Which company's car insurance should I take? Tata AIG or Bharathi Axa, Bajaj Allianz and some more are the options. Which one is recommended? I got a qoute from Tata AIG for a Comprehansive Insurance + zero depreciation cover (bumper to bumper insurance) + 3rd party insurance + some other addons like Key replacements, personal accicental cover of Rs. 2,00,000 etc etc for a premium of Rs.15780. Is the qoute correct?

The car dealership has qouted around 20K for the comprehensive insurance without zero dep addon from Bharathi Axa which I think is high.

4) They (Tata Aig insurance) are taking the IDV as 5% less than the ex-showroom price right from day 1 when the car is bought. Is that normal?
Do have read of this thread buddy.

Quote:

5) Again this policy is being taken directly from Tata AIG and not from the car dealer. So how will the car be insured and who will handle all the documentation? Will the car dealer allow this?
Insurance will be a proper one and same as the one you take from dealer. A valid policy will be given to you. Dealers do not have any issue with that. Just ask the dealer as to which all insurance companies are they tied up with so that it would give ease in future.

Regards

Akash

incarnation 2nd March 2015 07:49 PM

Re: My First Car - Loan and Insurance queries
 
Quote:

Originally Posted by autowhiz (Post 435894)
Hello Folks,
I have finalized my first car - Hyundai Grand i10 Petrol Asta (O). But I am complete newbie to purchasing a car and have got a few queries some of which might sound silly.

1) How much is the current interest rates for a fixed interest loan in Chennai? The ex-showroom (Chennai) price is coming to Rs.5.92 lakhs and the On-road price is coming to around Rs.6.81 Lakhs. I am planning to make a down-payment of Rs.3.81 lakhs and balance 3 lakhs will be my loan amount for a period of 2 years.

2) If I take the loan from my existing bank where I hold a current account, how would the loan payment be given to the car dealership? I know it sounds silly but I don't know how there will be communication between my bank and the car dealer.


3) Should I go for ECS or the old practice of PDS cheques? What precautions should I take before handing over the PDC cheques as these banks might trouble me when I need to get the NOC after the loan is paid fully?.

if you have a salaried account or in your case a Current account of your business its good to have ECS than cheque as you will be charged clearing charges for your cheques.

3) Which company's car insurance should I take? Tata AIG or Bharathi Axa, Bajaj Allianz and some more are the options. Which one is recommended? I got a qoute from Tata AIG for a Comprehansive Insurance + zero depreciation cover (bumper to bumper insurance) + 3rd party insurance + some other addons like Key replacements, personal accicental cover of Rs. 2,00,000 etc etc for a premium of Rs.15780. Is the qoute correct?
The car dealership has qouted around 20K for the comprehensive insurance without zero dep addon from Bharathi Axa which I think is high.

4) They (Tata Aig insurance) are taking the IDV as 5% less than the ex-showroom price right from day 1 when the car is bought. Is that normal?

5) Again this policy is being taken directly from Tata AIG and not from the car dealer. So how will the car be insured and who will handle all the documentation? Will the car dealer allow this?

6) How do I calculate the Reg Fee, Road tax etc from the Ex-showroom price? My Dealer is qouting Rs. 70K for this.


Any help or suggestions will be appreciated.

1.The current intrest rate is between 12-16% depending on the bank of your choice.However the loan interest rate is less in SBI. check with the specific bank you have in mind. Avoid International Banks as they charge more. go for nationalized bank only.
2. what happens is you give a quotaion of the car to the bank which you would be provided by the dealer. The bank will ask you to pay the remaining amount into your account .i.e (3.81 - the road tax) and bank will finance the remaining amount. However it will not be two seperate payments bank will handover 3 lack + the amount you pay into the bank excluding the road tax and will take a DD on the dealers name for the said amount of Ex-showroom+ TP+ Insurance. ( you will have 30 days time from the date of TP top pay the road tax)
3. compare it on policy bazaar.com and find the difference. however i would suggest for the first year stay with the companies insuirance as it would be cashless type of insurance in terms of damage.
4. that means its not ZERO DEP policy
5. the car dealer would have no problem. however i would suggest for the first year stay with the company offered insurance and then change.
6. in the price list given to you. you can see the break up that is ex-showroom coloumn. then Insurance coloumn. then road tax coloumn. Then handling charges or TP charges. at last the On-Road price.

hope this answers all your questions. please feel free to raise questions should you have any. we at TAI will be glad to assist you. Afterall we are one big family.

autowhiz 2nd March 2015 09:39 PM

Re: My First Car - Loan and Insurance Queries
 
Thank you for the valuable inputs...For the loan, I am getting a 10.5% fixed EMI loan. For the insurance, which insurance company is suggested on basis of hassle-free claims processing and customer friendliness?
And how will the insurance related documentation be handled if I take the insurance from online instead of the dealer?

Akash1886 2nd March 2015 11:10 PM

Re: My First Car - Loan and Insurance Queries
 
Quote:

Originally Posted by autowhiz (Post 435941)
For the insurance, which insurance company is suggested on basis of hassle-free claims processing and customer friendliness?

As an individual's opinion, I suggest you to go for a govt. insurance company like National Insurance, Oriental Insurance or New India Assurance etc. The govt. insurance companies might be slow and lack-luster than the suave private ones but are much more transparent in dealing with customers.

Regards

Akash

amit_arya 6th March 2015 10:24 PM

Re: My First Car - Loan and Insurance Queries
 
I do not know but with my experience with 2-3 TATA showroom.

if you take insurance from there dealer through the insurance is from the same companies but they give you cash less facility else you will have to pay upfront and later claim the amount.

this is a way they ensure you buy costly insurance amount. please check with the workshop with the companies it has tie up with and ensure you have the policy from that company. i do not mind paying a couple of thousands extra but Incase there is a claim you do not require to take 2-3 days holidays and bang your head with insurance company.

I also prefer government based insurance company as they are not that picky about things. imagine your car skidded and had a accident, the private company might reject it with the reason that you were running a tubeless tire on a car that came with tube tires and hence your breaking/control was affected. (this did not happened with me but you can read TAI or other famous sites, and they are full of such horror stories).

autowhiz 11th March 2015 10:39 PM

Can you suggest a few government insurance companies?

Hi,
Does anyone have experience of dealing with the online car load providers like Bankbazaar.com or policybazaar.com? How do you get the loan from the selected bank once you apply with them online? Do they come to our doorstep and collect the documents?

incarnation 12th March 2015 01:50 PM

Re: My First Car - Loan and Insurance Queries
 
once you fill in a form online they get in touch with the nearest branch and send them the info you filled online and a person from the nearest branch will contact you to inform you about the future course. and yes if everything is finalised they do come to your doorstep to collect the necessary documentation.

karthikjr73 25th March 2015 08:33 AM

Re: My First Car - Loan and Insurance Queries
 
@ Autowhiz,

When i purchased my vehicle in 2004, i had to take a car loan of Rs 5 Lakhs.
Emi at that time was Rs 2060 per lakh, making my EMI Rs 10300.

Since it was my first purchase and I was taking a loan for it, i asked the bank what commission were they willing to pass on to me. The bank agreed to give me Rs 19,000 back.

Instead of taking that commission in cash or draft, i asked the loan officer to reduce my Loan amount by Rs 19000 instead. Hence my entire loan amount officially now stood at Rs 4,81,000 thereby reducing my EMIs by a decent amount.

just a thought. try this.

Balaji Subramani 25th March 2015 11:37 AM

Re: My First Car - Loan and Insurance Queries
 
First, congrats for deciding to buy a car.

i just shared my experience here for loan procedure.

1. i took loan from SBH with interest rate of 10.3% for 5 years. it is variable.
2. loan amount was 2.32 lakhs. i.e. 85 % of on-road price.
3. no processing fees in all State bank group.
4. for me, they created on savings account. so i just transferred the EMI amount to that. they will deduct from SA.
5. Really, loan process is quite simple and they finished within 1 week.
6. they transferred the loan amount directly to Dealership through RTGS.
7. insurance they made it in national insurance (B2B insurance).
8. once the remaining payment paid, they delivered the car within 2 days. they took 2 days for RTO process.
9. After the 12 days of booking date, they delivered the car to me with what they promised and excellent pooja also (including sweet box[:)]).

Hope it will helpful for you.

passion4drive 19th October 2015 07:33 PM

Re: My First Car - Loan and Insurance Queries
 
Quote:

Originally Posted by karthikjr73 (Post 438963)
@ Autowhiz,

When i purchased my vehicle in 2004, i had to take a car loan of Rs 5 Lakhs.
Emi at that time was Rs 2060 per lakh, making my EMI Rs 10300.

Since it was my first purchase and I was taking a loan for it, i asked the bank what commission were they willing to pass on to me. The bank agreed to give me Rs 19,000 back.

Instead of taking that commission in cash or draft, i asked the loan officer to reduce my Loan amount by Rs 19000 instead. Hence my entire loan amount officially now stood at Rs 4,81,000 thereby reducing my EMIs by a decent amount.

just a thought. try this.

jj
Which bank was that?? Do sbi provide such commission??

drniladrisaha 27th June 2016 12:39 AM

Bank Loan
 
What is your preference regarding Car loan ?
Private or Public Sector Bank ?
Please share your experience

incarnation 28th June 2016 06:19 PM

Re: My First Car - Loan and Insurance Queries
 
i prefer national banks as they are the safest and very less hidden charges. Rest its up to your experience with the bank. a few years bank when ABN Amro bank existed i so liked their services but the bank was taken over.

Prabhagar 28th June 2016 06:55 PM

Re: My First Car - Loan and Insurance Queries
 
Quote:

Originally Posted by autowhiz (Post 435894)
4) They (Tata Aig insurance) are taking the IDV as 5% less than the ex-showroom price right from day 1 when the car is bought. Is that normal?

Yes this is normal but there is an add-on to bump it up to 100% ex-showroom price. Please ask about this when you request a quote.

Quote:

Originally Posted by autowhiz (Post 435894)
6) How do I calculate the Reg Fee, Road tax etc from the Ex-showroom price? My Dealer is qouting Rs. 70K for this.

I see you are from Chennai so you have to pay tax @ 10% of ex-showroom price plus a couple thousand rupees for road tax, fees etc. I registered my Tiago earlier this week and waiting on paperwork/receipts. Will share exact rates once I get them.

vaibhav 30th January 2017 10:32 AM

Will car insurance company reimburse out of pocket costs paid after accident?
 
Hi
I have dezire ldi with 0 dep policy with Future General. We were travelling from delhi to alwar and met with an accident there. Since, we were going to a urgent function we got car repaired on our own for 10,500 rs . We have kept old parts and new parts covers.
We did inform insurance company in the night about the accident and asked to reimburse claim (proper bill) and also approve remaining damage - bumper and ac condenser.
But, it seems they wont pass the claim citing that you havent informed us before repairs. I bought insurance from coverfox.com

Please advice[cry]


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