Need Advice: Purchasing New Car on Loan

[rshnk]

Hi there,

Sorry, if this is a wrong section. Mods please move to appropriate location.

I'm in process of purchasing an Alto K10 VXI (AGS). So, First contacted the dealer and due to the recent floods in Chennai. I declined last year model and requested for this year 2016. The dealer took my request and said it would take 15 days to arrive from Maruti factory. I know its not true, But agreed and went with a booking of 10,000 initial to start the process.

And in the mean time, I have contacted my bank for Auto-loan because I received a special pre-approved loan via email (a month back) for 9.65% with nil processing and closure chargers after 24months. I didn't want to miss that offer, So I contacted them. But The bank person refused and said it is expired this month (feb) 15-16th But they still pushing it for customers who have already gave application. And all rates are getting revised as per this year rules.

I didn't want to miss the offer, So I signed everything and gave it for process. In the mean time, I called The dealer for the status because the days has been passed and it has been a month since I booked. And he said the vehicle has been dispatched and it is on the way from Mumbai to Chennai.

Now from bank side they're pressuring me for confirmation because the approved loan amount should be disbursed within tomorrow or else the offer will be removed. And they blindly disbursed the loan amount to the dealer without any confirmation from my side. I didn't receive any telephonic call for request or confirmation as well. Just a SMS to registered mobile number that the loan amount has been disbursed.

Now the loan amount has been sent to dealer. The car is not visible yet. And my EMI is starting next month 7th. Is there any way to cancel the loan or please advice on what step to take further. I have no idea what to do now. They disbursed the money without my confirmation and I didn't see my car yet. The dealer gave me a word till 29th end of this month (feb) for delivery.

Please advice, Your inputs will help me to handle further.

Thanks.
RK

 

[$@ndy]

Re: Need Advice - Purchasing New Car in Loan

How can they disburse amount without your consent. you should have a word with senior officials of the bank. ideally it should be disbursed after you give your consent to take the delivery of the car whereas in your case you haven't even seen the car.

 

[Nairrk]

Re: Need Advice - Purchasing New Car in Loan

You said.. you signed everything and gave it for process..
Are you aware what all documents you have signed? There may be some kind of agreement to disburse the loan to the dealer which you might have also signed??

Anyway, suggest write to the bank informing them that the car is not yet delivered to you and as such there was no need for the bank to disburse the loan amount to the dealer and you are not bound to pay any interest amount on the loan etc...

Put it everything in writing as it goes on record (as what Bank did was wrong).

(Years back, I too took a loan from a bank for purchase of Maruti Esteem. I have booked the car but they were not able to get the colour which I selected but by that time the Bank disbursed the amount to the dealer. I cancelled the booking and opted to buy Hyundai accent because they were ready to deliver the car as per my colour selection. I have written to the Bank to get back the money from Maruti dealer and disburse to Hyundai Dealer which they did and even they waived the interest for those few days when the money was with Maruti dealer..)

 

[generalmax]

Re: Need Advice - Purchasing New Car in Loan

First of all do not worry about the loan and EMI.It is OK if you pay the first EMI too.Just ask the dealer to give the VIN number of the vehicle dispatched. No need to get in to a sad mood. Verify that the vehicle is actually from this year.The same thing happened to me,but I was fooled by the dealer by giving me a 6 month old car. So first check the vehicle details .Alto K10 is not such a great selling car.So,you must be getting your car.
Cheers!

 

[Automaticar]

Need Advice - Purchasing New Car in Loan

I believe since the Bank has disbursed the loan without your intimation they'll be liable to get the amount back from the dealer unless he delivered you the car. I would suggest you should write to the bank and also meet the senior authorities to get this issue resolved.

In worst case scenario you can always approach the Bank Ombudsman asking for intervention.

 

[rshnk]

Re: Need Advice - Purchasing New Car in Loan

I'm pretty much aware of the signed documents. The problem is.. there is a percentage hike for auto loans starting from this month ( that's what they claim ) and trying to push the loans as much fast as possible. They did promise me that they wont disburse without my permission. But the next day I got verification calls..etc but no one asked me for disbursement and that same night at 10pm, I got a SMS confirmation. stating the loan amount has been disbursed. I'm soooo mad because, If they transfer after 20th.. I will be paying the EMI one month later ( which is april ). Just because of that, they played a very cheap trick on me and disbursed on 19th itself because its friday and weekend on the way.

Now the dealer collars are up and I'm not sure what to do if the new car has anything suspicious. The sales person said the vehicle has been dispatched and its been 8-10 days totally now. When I asked for VIN/Engine Number. He's giving me excuses like.. he will get to know when it arrives at dealer's yard.

I think these are my options now...

1. Wait till 29th and get the car and pay the damn loan from next month.
2. or wait till 29th and if car has not yet come. Go and meet senior rep @ bank or cancel the loan ?
3. or anything better ?


Thanks guys

PS: It's HDFC Bank, By the way.

 

[RKKOLLIPARA]

Re: Need Advice - Purchasing New Car in Loan

With my recent experience form floods, I have learnt that not go for any auto loan in future for any vehicle. If I can arrange the funds from any other sources i.e. gold loan, personal loan offers on credit card etc. I will make use of those but not the Auto loan.
Me and my neighbor has the same car, same insurance policy and both of us have went for total loss, only difference is he doesn’t have any loan on his car and I have.
I struggled a lot in-between service center, insurance company & bank for settlement, but in his case its hassle free.
I may not have total loss again for my vehicles in future, but the pain I felt made me to take the decision for not going for any auto loan.

 

[Nairrk]

Re: Need Advice - Purchasing New Car in Loan

If one can arrange funds from other source, then we will get a clean RC, without any remarks/Hypothecation stamp. Credit Card loan also easy to get but probably the interest rate will be more (City Bank offering me Rs.3L for 14% interest rate, and they keep on sending me reminders). !!

 

[RKKOLLIPARA]

Re: Need Advice - Purchasing New Car in Loan

If one can arrange funds from other source, then we will get a clean RC, without any remarks/Hypothecation stamp. Credit Card loan also easy to get but probably the interest rate will be more (City Bank offering me Rs.3L for 14% interest rate, and they keep on sending me reminders). !!

SBI credit card has offered me a loan with 8% interest rate up to 4,30,000 rupees with 3000 as processing fee.

HDFC credit card has offered a loan me 11.5% interest rate up to 8,00,000 rupees with nil processing fee.

I opted for HDFC

 

[rshnk]

Re: Need Advice - Purchasing New Car in Loan

Now my only concern is getting the car. I have raised a complaint via maruti helpline and also dealer's head-quarters. fingers crossed.

Seriously I never expected such pathetic customer service. Hyundai is 10x better in terms of handling their customers ( from my experience ) But Now I regret for choosing Maruti.

 

[RKKOLLIPARA]

Re: Need Advice - Purchasing New Car in Loan

Seriously I never expected such pathetic customer service. Hyundai is 10x better in terms of handling their customers ( from my experience ) But Now I regret for choosing Maruti.

What are excuses coming out from Maruthi? And who is the Dealer?

Paying loan in the month of March or April doesn’t make much difference. You will complete loan term one month before.

Don’t ever think other manufacturer/dealer is far better than this.

In my case while purchasing my first car -
• They suggested me 2012 make and white color, I insist on 2013 make and Gray color.
• I processed loan by myself with out there intervention

That’s it, they never showed interest on selling a car to me. I have to follow up everything.

At that time there was an offer like “If we book a car on women’s day, they will gift us a 1 gram gold coin” even for that I had to chase.

I also made complaints to dealer's head-quarters & company help line. But things happened only when they can happen. No progress or use by my complaints.

Even during flood, these guys didn’t responded properly. They will do what they want to do and least bothered on our concerns or priorities. They charged me rupees 3000 + 14.5 tax to provide repair estimate and rupees 200 per day as parking fee for my flooded car at their premises.

By the way it is “HYUNDAI”

 

[RKKOLLIPARA]

Re: Need Advice - Purchasing New Car in Loan

Now my only concern is getting the car. I have raised a complaint via maruti helpline and also dealer's head-quarters. fingers crossed.

have you got your car?

 

[rshnk]

Not yet bro, Received the car in yard and delivery is next week only.

 

[RKKOLLIPARA]

Not yet bro, Received the car in yard and delivery is next week only.

Me asking the same question again, any update?

 

[billubakra]

Re: Need Advice - Purchasing New Car in Loan

SBI credit card has offered me a loan with 8% interest rate up to 4,30,000 rupees with 3000 as processing fee.

HDFC credit card has offered a loan me 11.5% interest rate up to 8,00,000 rupees with nil processing fee.

I opted for HDFC

Why did you go with HDFC if their rate is like 3.5% more than SBI?