Buying A Registered Car

[mmrizmy]

Hi guys.

i'm new to this forum and this is my first post,

i would like to buy a regsitered car, my options are swift,chevi and alto, what do you guys recomend, my budget would be maximum 1.8 million,

and the other thing is, i have 0.5 million in my hand, so i would like to go for a lease of finance for the rest or the balance,

one of my friend mentioned instead of going for a lease or finance i can get a vehicle loan from banks,

so guys whats ur suggestion, waiting for replies,

thank you,

[Nimz77]

Hi guys.

i'm new to this forum and this is my first post,

i would like to buy a regsitered car, my options are swift,chevi and alto, what do you guys recomend, my budget would be maximum 1.8 million,

and the other thing is, i have 0.5 million in my hand, so i would like to go for a lease of finance for the rest or the balance,

one of my friend mentioned instead of going for a lease or finance i can get a vehicle loan from banks,

so guys whats ur suggestion, waiting for replies,

thank you,

Hi,

You can get personal loan from bank...(but now interest rates are high).

[longjohn]

Your selection is somewhat confusing to me, since Alto's fuel economy cannot be compared with Swift. Anyway you might have good reasons to put them in one basket.

As I know one's ability to raise a loan would depend on credit worthiness; salary, employment status, age, and also ability to get guarantors etc. You might have a bank account either saving or current and it is best to talk to your bank manager.

[mmrizmy]

Hi,

You can get personal loan from bank...(but now interest rates are high).

thank you,.

is it higher than leasing or finance?

[mmrizmy]

Your selection is somewhat confusing to me, since Alto's fuel economy cannot be compared with Swift. Anyway you might have good reasons to put them in one basket.

As I know one's ability to raise a loan would depend on credit worthiness; salary, employment status, age, and also ability to get guarantors etc. You might have a bank account either saving or current and it is best to talk to your bank manager.

yes, its a bit confusing,

i wanted an alto as it does fuel well, but as i was going through the forum most of the comments were saying not to go for the alto, so i thoghut of going for a swift,

what do you think about the swift?

[kirala2]

one of my friend mentioned instead of going for a lease or finance i can get a vehicle loan from banks,

Your friend is correct. Try to obtain a loan on reducing balance basis from a bank. While a lease is quicker than a bank loan, a bank loan has certain advantages over a lease, especially when it comes to a registered vehicle where a VAT invoice cannot be obtained from the seller. With a Lease, you pat VAT on the lease rental, and unless you obtain a VAT invoice from the seller, you'll end up paying VAT on VAT. Whereas loans are not subjected to VAT, and therefore your installment will be correspondingly lower. Try to negotiate a variable interest rate, instead of a fixed interest rate (although both have their respective advantages and disadvantages as well) Right now, we are seeing a plateauing effect on interest rates, and I would personally go for a variable rate.

[mmrizmy]

Your friend is correct. Try to obtain a loan on reducing balance basis from a bank. While a lease is quicker than a bank loan, a bank loan has certain advantages over a lease, especially when it comes to a registered vehicle where a VAT invoice cannot be obtained from the seller. With a Lease, you pat VAT on the lease rental, and unless you obtain a VAT invoice from the seller, you'll end up paying VAT on VAT. Whereas loans are not subjected to VAT, and therefore your installment will be correspondingly lower. Try to negotiate a variable interest rate, instead of a fixed interest rate (although both have their respective advantages and disadvantages as well) Right now, we are seeing a plateauing effect on interest rates, and I would personally go for a variable rate.

thank you very much,

[Batteries]

What I see is rate is increasing currently. So if you go for variable rate you may have to pay more in the future. Better for go Fixed or variable fix. That’s mean your rate is fixed for a year(Variable fix).