CAR LOAN TRAP : FIRST TIME CAR BUYERS ARE ITS VICTIM !!
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- Опубліковано 11 жов 2023
- Car Loan Trap Explained for First Time Car Buyers in India. Know Insider Facts while selecting Best Bank for Car Loan Finance including Loan Scheme
- Авто та транспорт
Never take more than 30% of car price as loan. Put in as much money as you can because the car is not an asset. It depreciates quickly. New car new model comes... your car value goes down. Never go behind features because many of them we don't use. Engine power, basic facilities, air bags, low maintenance, decent mileage and good AC.
Ohk..bro.. noted 👍🏻
got tiago in 2020, loan was 7.6%, planning to pay till 7 years. not prepaying anything😅
Yes only a commerce student can understand this..
Thanks
@ravir-ke3ds...Can u suggest cars with above said specs please...thank you
Absolutely love your clarity, Sir, absolutely. Your grasp on this topic is fantastic. Personally I have never ever purchased a car on loan. But this helps in talking to my friends about not getting in debt.
Very valuable piece of information but unfortunately people ignore it and finally learn the hard way through their personal experience.
Car k bare me jitani financial help apse mili hai or kisi se nahi 🙏 dhanwad
If I’m taking a loan with longer duration say 7 years to have lower emi, then foreclose it within 3 years, the overall net interest will be lower than continuing it for 7 years. You should not only see it from a interest rate perspective, you should also consider the net interest paid. I’m sure if you calculate, continuing a 7 years loan will not be better than foreclosure. After 3 years, you can use the emi amount to invest in different instrument and that can anyway cover the interest paid during 3 years.. I think your approach is one directional, but it was a food for thought 😊
So brother if I have taken the loan of 7 years than it is okay to pay till 7 years and will not think about the foreclosure
@@avinashshukla2292 didn’t get your point. What I’m trying to say is, you compare the net interest paid in both cases and then decide. Just don’t look at from interest rate perspective
Rather invest that money in something that will give you a return that is higher than the remaining interest on your emi!
Paying back a loan in the way you mention is not the best sound advice (unless you just wanna remove the pressure of emi payments and are willing to pay a premium for that mental peace)!
Paying back the loan in 3 years is never gainful if you put future value into perspective.
That's very stupid, if u know u can payback in 3 yrs then wait for 3 yrs. Unless u got jackpot lottery and now u have money at dispersal that's ok. Best is calculate the emi by years. For cars generally emi term is 5yrs, beyond that it's higher interest . Similarly for home loan 20yrs is sweetspot.
@@techcloud2510in 3 years car price will be increased with the amount you pay in interest on your current loan so taking loan is somehow beneficial as you also get car for that 3 years 😊
Thank u sirji.. Ye influencer ko dekh dekh k new car soch rha ta lene ko..
Wagonr 2016 model chala rha hu.. 80K hi chali h bs.. Ab isi ko chalaunga.. Till 15yrs..EOL of the car
Very interesting advice, I knew about the amortization schedule but never thought about it from this angle. Thanks a lot!
Very pertinent video. I recently bought a Grand Vitara. Out of 17 lakhs, I made a downpayment of 10 lakhs. For the remaining 7 lakhs I wanted a loan of 1 year. Yes one year. All banks flatly refused, PSU banks said minimum tenure is 2 yrs, while pvt banks said min tenure is 3 yrs. Afyer lot of haggling I managed to get a 2 yr loan from ICICI but they charged me 0.2% higher than a 3 yr loan. Still I saved substantial interest cost. Loan should be of min tenure even if the EMI hits u hard. After few EMIs u get adjusted to the new montly expense and u dont feel the burden so much.
Just asking for knowledge, why didn't you go with Psu as you said they were giving for 2 yrs tenure ?
Just because of the sheer paperwork that is involved. My last car loan was from SBI and it was quite a hassle. On the other hand I had a pre approved loan from a pvt Bank and all I did was make a call and sign the loan agreement. There is one more reason. My new car arrived at the dealership much earlier than expected and I didn't want to leave the car with them more than 1-2 days.
Thanks Arindam
@@arindamdas936how much interest rate icici they charged you for 2 years tenure ?
U should never take loan
👌Very true information. I regularly watch ur video as till date I don't own any car. Now this festive season, I m planning to buy my very first car - may be Ignis Alpha (MT)..........if I could snatch maximum discount offer Otherwise I will have to go for its Zeta (MT). I don't want to take any kind of loan but to buy totally in Cash. Tentative my monthly driving would be 1000 kms and mostly in city. Once again, a big TQ to Mycarhelpline team for making good informative videos.👍
Excellent podcast. Very educative. Very informative and a must watch video. Thanks a ton for your effort to produce this informative video.
You calculated the interest considering the EMI of Rs.16013 but if you consider it for a 3 years period the EMI @ 8.85% p.a. works out at Rs.31730/-.
If a person avails a loan for a term of 7 years and instead of paying stipulated EMI of Rs.16013/- he keeps on paying Rs.31730/- p.m. his loan will be closed exactly at the end of 3 years with actual interest charge of 8.85%. Interest is charged on the outstanding balance of the loan. Even in your cited example if you calculate the interest on the outstanding balance at the end of every month, you will find that interest is charged @ 8.85%. Get the facts verified from your chartered accountant & delete the video as it is misleading. It is an advice from one of your regular viewers.
That's correct, but many a times lenders don't permit extra EMI so they can make Max money out of the loan.
Bhaiya bahut smart ho, lekin bank aapse zyada smart h, extra emi nahi bhar sakte 1 ya 2 saal tak
@@vikaskapoor653govt bank se loan lo
Highly appreciate your honest awareness videos. 👍
To the point explanation. Very clear.
Naya nou din hota hain to Purana sou din ka 👏👌. Very helpful. Thank you.
Is it a good idea to coat ceramic coating on my ev car or to rubber paint the floor
I appreciate your content...and going by the logic of pre closure, I think we should not think of closing it before hand.
I am a big car enthusiast. But never seen a guy like him. Really appreciated ❤
Very Good Information... Spread this video to many of users now a days many of them are planning to buy new car
Keep up the good work bro. Really appreciate the efforts you put in. Highly informative.
Tushi te chha gaye Guru....Thoko Taali 👏👏👏
Too Good sir.. keep it up, by making such informative videos and educating the public
Thank you so much. Now I will complete my loan tenure. Thanks a million!
I really appreciate the way you make these kinds of videos. It does help people to make informed decisions. Keep up the good work. Cheers
How about buying a second hand car? Is it much better than buying a new one?(ofc considering the condition of the car)
The information is good for knowledge. But before going as per advice just consider the amount as per part or preclosure payment and then paying till last EMI. If you are closing the loan in between. You can still use the rest of the EMI for your other financial needs.
I was about to take an uninformed decision, you saved me big time. Thank you Mycarhelpline
hats up for ur unforgettable advice, kindly help us through such videos
Nice explanation sir.
Very informative👍👍
Keeping EMI minimum reduce compulsory obligation and one can pay every month extra amount if one can pay higher EMI. This will effectively reduce tenure and also with no fear of penalty in case of emergency. But loan shoykd be from Sarkari Bank. 😊
Appreciate your efforts
You are wonderful. Thanks for your precise advice..
This kind of videos and information's are very important for all viewers to watch .. amazing info bro..
Thank you Sir really very helpful information 🙏🏻
आपकी वीडियो सारी बहुत अच्छी होती हैं। जियो भाई
Very well explained. Thank you for the valuable information.
I went for the used car based on your suggestion and looking at how quickly cars start to look old...
In case of psu banks, it’s clearly mathematics. If you take 5 year lone or 7 year or 70 year lone interest you paying will be of outstanding amount.
Sir you are the best clarity giver.
You are rocking! Love you. Want to watch video on upcoming Duster
Sir planing to buy xuv500 2015 w6 . Is it worth buying at 6.5 lakh ?
Can you correct me if I am wrong, Amortization schedule has an interest component higher in initial EMI's because loan outstanding is high, interest is always calculated basis the rate of interest, if my interest rate is 8.5% the interest amount I will pay in my initial EMI's or my late EMI's interest rate would be 8.5 only
Mera problem hai jab bhe me loan lene gaya hu cars ke liye humesha flat interest he deta hai indusind... Mujhe loan reducing me chahiye.. Ye indusind reducing provide karta hai dikhata toh hai search karne pr..
I might sound dumb here but when ever you get more money if you put it to the loan account, principle will be reduced and the monthly interest is calculated on the outstanding amount so i dont think the 13% caluclation is right. And emi is compulsory and if you take shorter term and fail to pay the emi then they will charge you, and u can make as much as repayment in state bank without any fee unlike personal loan. But yes pre closure charges are there if you close the loan before 2 years.
You are absolutely right, actually, he didn't understand the calculation. Most of the people have just gone as he explained.
As long as the interest rate is the same and the interest is charged at the outstanding amount, it's always wise to pay less if you can make a return at more than the loan interest rate.😂
Very useful information.
Thanks for your guidance.
Thank you My Car help line for the wonderful advice
Very good knowledge. I suggest that you park the prepayment money in nifty or sensex or any large cap funds to recover the interest cost.
Very valuable information Gagan ji
Thanks a lot, very good information.
You're real content creator....I like your all videos which are helping a lot...to everyone...!!❤
Very Informative Video Sir.....Thank You.
Thanks sir...for great suggestion.
Thank you so much sir for the informative video.
Nice video, thank you sir!
You are absolutely right sir.
very much appreciation for u sir
To add to what the author of the video mentioned, if you do get the money that is enough to close the loan, instead of using it to actually close the loan, invest it in something safe that will provide you with enough returns that is higher than the interest component that is left on the loan!
Acko drive se car lena sahi ha kya ?
Never buy tata car , first time buyer need to be very alert from trapping in specifications feature game which is explained by Tata showroom salesperson. Use your brain.... Low fuel economy, frequent repair , low resale value, high maintenance, delay in spares availability, poor customer service and many more are key features and specifications of Tata motors. Take feedback from old Tata customer they never buy again
Are you using HondaCity?
Very very true lot of difference in quality in old and new cars
Agar per month Additional payment such as 1000+ EMI is good or not
thanks for educating us.
Great knowledge helping us to make a better solution. Loan is always dangerous as we are not just paying the % interest but other amount also to earn that money which is always more than the actual amount+30% of actual amount, which we pay in income tax.
If you're paying 30% tax then you're rich.
Thank you for your wise advice
This is amazing information. I had no clue about this and has helped me make an informed financial decision. You are amazing sir
Thank u so much for this video
Sir 20% is total of all emis ya car emi only?
Ek number aadmi ho aap.. achhi achhi insights dete ho.. keep up the good work.. may u reach 1M subscribers soon bro ❤😊
I took car loan of ₹6,70000 recently for EMI 10,800 from BOB at 9.30% for 7 years.
I should continue till 7 years and should not foreclose even if i have the amount right?
Thanks for opening my eyes ❤
Great efforts
Sir thank you for awaring us to make a good decision
Good suggestions sirrrrrrrrr
Really appreciate your thoughts..
Great video as always
Absolutely on point 💯🔥👍
Very informative video.
Have liked this video.
samajh gye bro bohot achhi jankari di aapne
thanks👌👌👌👌❤👌👌👌👌
Hi sir, I doubt what you have informed.. when you do part payment it direcrly deducts the total prinicipal amount rather than going towards interest first. If what you are saying is correct, then the whole concept of part payment or prepayment or foreclosure doesnt make any sense. This wouldnt have been there if we are going to pay the interest. That would be foolish like you said.
I guess when you do part payment you prinicipal/outstanding reduces which eventually reduces your total tenure.
I read this from TOI, policy bazar and few other articles.
You are right
I am a bit confused as well. but I think he meant that if loan tenure if 5 years and you paid all the emis for first 2 years then whatever total intrest you would have eventually given is already given in first two years because in initial period most of the portions of your emi goes to interest and very less amount goes to base loan amount.
so there is no point in closing the loan after two years because you’re intrest is already paid and almost all of the emi is going to your principal amount.
let me know your thoughts.
@@anuraggoyarcorrect... So better have the loan till last year
Very informative information 🎉
Sir koun sa base model best hai breeza or nexon. Running kam hi hai. Road ache hai. 2 kids hai.
Go for brezza
I respect the feeling of this gentleman, but the best way mathematically to get rid of a loan with cheapest interest rate and least risk is increasing tenure and paying upfront as much as you can. Obviously without pre-payment charges or tenure fee.
Perfect awareness this applies to all type of loans. But car loan is a real nightmare with huge depreciation.
sir car loan me paise account me credit hote he ya car dealer account
Brilliant Information & gain knowledge about loan
Honest and good advice..keep it up
Thank you for the Info
Agr emi 10k hai mgr pay 16k krdu fr principal kam hoga?
India is a country where if people starts following these guidelines, the car sales will drop 50% 😅😅
Agreed 100%.. very honest suggestions… ❤❤
Excellent advice 👌.
Superb information! 👏🏼👏🏼👏🏼👏🏼👍🏼
Excellent explanation.
Go to Indian Bank, ROI 8.8 onwards zero processing fees, zero pre closure charges!
Taken but they are offering 8.8 percent on floating ROI and 8.6 on fixed ROI..i have taken floating one.. is it a good decision or bad ?
@@Mr_Gupta-jii absolutely yes, because in floating, it can go well below 7% depending upon market stability!
Floating is fine, but make sure to check on the interest on regular periods. This is typically something useful for home loans which runs for 15-20 years, some people prefer a fixed interest rate than a floating one.
Well managed.,... Very nice advice...
Thank you 🙏🙏
Great and honest ❤
Fantastic sir....
Sir ji naya naya hu bhul too ho hi gayi abb kya kare .. ???
Salute boss.🎉
Just about to go for a car loan (3 lacs only, which I can clear in 5 months).
Would a gold loan be a better option (at 9.5%)? Please advise.
Better to first save 3 lacs and buy them without loan
Thanks man 👍
Ha ji sahb ji thik hai hm log
Aasha krta hu aap bhi theek honge