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Does banks allow us to negotiate car loan Interest rate when buying new car?

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CreditFreak

CreditFreak

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Does banks allows us to negotiate interest rate on new car loan? my pre-approved car loan interest rate is showing as 8.9 (ICICI). All the private banks + SBI are offering car loan on fixed rate. Other PSU banks are offering loan linked with RLLR. Since we are expecting repo rate to go down in future, should I go for PSU banks or ask ICICI to reduce interest rate?
I saw in a YT video that car dealers get 1-1.5% commission from car loan. The video did say that we can negotiate the rate in that margin. If someone have any experience please share.
 
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CreditFreak said:
Does banks allows us to negotiate interest rate on new car loan? my pre-approved car loan interest rate is showing as 8.9 (ICICI). All the private banks + SBI are offering car loan on fixed rate. Other PSU banks are offering loan linked with RLLR. Since we are expecting repo rate to go down in future, should I go for PSU banks or ask ICICI to reduce interest rate?
I saw in a YT video that car dealers get 1-1.5% commission from car loan. The video did say that we can negotiate the rate in that margin. If someone have any experience please share.
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even i wanted to know this! but no one has have answered here! so....
 
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vaibhav111 said:
even i wanted to know this! but no one has have answered here! so....
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After taking the car loan here is what I came to know.
  1. I had salary account with ICICI but they only offered me the same interest rate what they offer to the other customer. I didn't get any additional benefit. I did try to negotiate. But the relationship manager only let me negotiate the processing fee.
  2. SBI offered slightly less interest rate with zero processing fee. But they also did not negotiate.
  3. HDFC bank offered me loan with high interest rate but when I told them that I am getting this offer from this bank, they said they can only match it.
  4. Other Govt bank bank offers RLLR rate but they also don't negotiate.
  5. 0.2 - 0.3% is not much if bank has zero processing fee.
 
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you can easily negotiate interest rate with bank. you will get 0.5% different easily by negotiating. Most of the banks do charge on Pre Clousere , processing fess and other hidden charges. If they are not agreeing on Interstate rate discount then negotiate on other charges waiver. You can also try negotiating with Car dealer as they can also pass commission to you.
 
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I still don't get it. Do you guys have like lakhs of rupees that if they don't give you loan then you would pay in cash or something?? I never did try to negotiate, whom do you tell to negotiate? the person that is entering their SO RO number (whatever is called) in bank portal and doing it online. Or we are talking offline loan on counter or what? sorry I am behaving like clueless coz I am.
 
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Someone said:
I still don't get it. Do you guys have like lakhs of rupees that if they don't give you loan then you would pay in cash or something?? I never did try to negotiate, whom do you tell to negotiate? the person that is entering their SO RO number (whatever is called) in bank portal and doing it online. Or we are talking offline loan on counter or what? sorry I am behaving like clueless coz I am.
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Negotiations should be done for offline processing only..
 
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