Optimizing Car Payment: Guidance Needed for Hyundai Creta N Line Top Varaint.

[vaibhav111]

So, I previously inquired about the Tata Nexon EV. However, multiple threads on https://www.team-bhp.com/forum/ reported software issues in Nexon models from October-December. Since I won't always be the one driving, I had to stick with an ICE engine for another 5+ years. The good news is that EV infrastructure is rapidly improving, so the future of EVs looks promising.

Now, I need some help with the EMI calculation. The car is around 24 lakhs, and I plan to pay 5-10 lakhs using my credit card, with the rest financed through an EMI. I'm not a fan of this approach, but my dad has experience with car EMIs, and I don't. Additionally, the Hyundai executive mentioned an EMI interest rate of 8.85%

 

[nits123]

My 2 cents...Car is depreciating asset and thumb rule of personal finance suggests that we should not buy any depreciating asset on loans....I hope you will take my inputs in positive light....Rest, it is your choice.

 

[CARDBITRAGE]

So, I previously inquired about the Tata Nexon EV. However, multiple threads on https://www.team-bhp.com/forum/ reported software issues in Nexon models from October-December. Since I won't always be the one driving, I had to stick with an ICE engine for another 5+ years. The good news is that EV infrastructure is rapidly improving, so the future of EVs looks promising.

Now, I need some help with the EMI calculation. The car is around 24 lakhs, and I plan to pay 5-10 lakhs using my credit card, with the rest financed through an EMI. I'm not a fan of this approach, but my dad has experience with car EMIs, and I don't. Additionally, the Hyundai executive mentioned an EMI interest rate of 8.85%

If you're looking at an EV, many manufacturers currently have discounts. MG, Tata and Mahindra had some mouth-watering discounts. Kona had upto 3L in discounts so do ask for it.
As for the EMI, go ahead with it if you find the interest charged to be nominal. Make sure the interest charged is a floating rate as the interest rates will be cut substantially going forward.

 

[dungeonMaster]

My 2 cents...Car is depreciating asset and thumb rule of personal finance suggests that we should not buy any depreciating asset on loans....I hope you will take my inputs in positive light....Rest, it is your choice.

My 0 cent,
Don't take input from so called influencer on deprecated assets etc.

You can put it on loan and use your working capital in assets for capital gains which can offset the loan interest easily.

 

[vaibhav111]

My 2 cents...Car is depreciating asset and thumb rule of personal finance suggests that we should not buy any depreciating asset on loans....I hope you will take my inputs in positive light....Rest, it is your choice.

yeah i'm on too on the same page as you, since i have very little experience on buying on EMI just couple of electronic product so principal + GST is charged and not sure what any other charges would have to understand even though paying full is much better cause that interest charged on total of 10-15 lakhs on 8.80% would be hugh so I'm against it but i would like to understand if there is any merit cause straight capital would be going off instead. so i want to understand what other thing are there hence i asked this question otherwise would have just sit with the executive and do my due diligence.

 

[nits123]

My 0 cent,
Don't take input from so called influencer on deprecated assets etc.

You can put it on loan and use your working capital in assets for capital gains which can offset the loan interest easily.

Kind of language you use...Not sure who added you in VIP lounge of this forum

 

[dungeonMaster]

So, I previously inquired about the Tata Nexon EV. However, multiple threads on https://www.team-bhp.com/forum/ reported software issues in Nexon models from October-December. Since I won't always be the one driving, I had to stick with an ICE engine for another 5+ years. The good news is that EV infrastructure is rapidly improving, so the future of EVs looks promising.

Now, I need some help with the EMI calculation. The car is around 24 lakhs, and I plan to pay 5-10 lakhs using my credit card, with the rest financed through an EMI. I'm not a fan of this approach, but my dad has experience with car EMIs, and I don't. Additionally, the Hyundai executive mentioned an EMI interest rate of 8.85%

24L for nexon ev is too much, which variant is it and which state, considering base model start from 9L.
Better to go with hybrids/petrol, as evs are still in initial phase.

 

[vaibhav111]

24L for nexon ev is too much, which variant is it and which state, considering base model start from 9L.
Better to go with hybrids/petrol, as evs are still in initial phase.

sorry i should mentioned my dad have made initial payment toward hyundai creta N line top variant.

 

[vaibhav111]

that true. but my dad made up his mind and buying Hyundai Creta N Line. i have took the test drive for facelift creta and would take test drive for N line in couple of days.

If you're looking at an EV, many manufacturers currently have discounts. MG, Tata and Mahindra had some mouth-watering discounts. Kona had upto 3L in discounts so do ask for it.
As for the EMI, go ahead with it if you find the interest charged to be nominal. Make sure the interest charged is a floating rate as the interest rates will be cut substantially going forward.

 

[techt]

Additionally, the Hyundai executive mentioned an EMI interest rate of 8.85%

Read somewhere on this forum, that never go with inusrances or emi from inhouse . Take outside insurance .

 

[Animal]

yeah i'm on too on the same page as you, since i have very little experience on buying on EMI just couple of electronic product so principal + GST is charged and not sure what any other charges would have to understand even though paying full is much better cause that interest charged on total of 10-15 lakhs on 8.80% would be hugh so I'm against it but i would like to understand if there is any merit cause straight capital would be going off instead. so i want to understand what other thing are there hence i asked this question otherwise would have just sit with the executive and do my due diligence.

Two scenarios:

1) You don’t have the full amount to pay. Either go for EMI or don’t buy the car.
2) You can pay the full amount but if you can make more returns than car loan interest rate, then go for EMI.

Appreciating or depreciating asset doesn’t matter to me as long as I’m able to make more money than the rate of interest.

 

[sxchzy]

yes base point is to break on his loan payments at 8.85% he will need to yield 10-12% returns pre-tax.
so keep in mind the calculations

 

[Animal]

Ideally car should not be treated as asset in my opinion. For me asset is something in which you invest for short term / long term goals.

People buy car for necessity, comfort and status.

 

[dungeonMaster]

Kind of language you use...Not sure who added you in VIP lounge of this forum

Haven't you seen Ashneer's language 👀

 

[dungeonMaster]

Kind of language you use...Not sure who added you in VIP lounge of this forum

 

[dungeonMaster]

Two scenarios:

1) You don’t have the full amount to pay. Either go for EMI or don’t buy the car.
2) You can pay the full amount but if you can make more returns than car loan interest rate, then go for EMI.

Appreciating or depreciating asset doesn’t matter to me as long as I’m able to make more money than the rate of interest.

Yeah correct. It only makes sense to pay in full if you have 10x amount of car lying around.

Even if you have 2x amount I wouldn't suggest to pay in full. Cash is power, specially in times like these.
You can spot market opportunities within an year and can invest that amount.

 

[VISHESH_BANSAL]

So, I previously inquired about the Tata Nexon EV. However, multiple threads on https://www.team-bhp.com/forum/ reported software issues in Nexon models from October-December. Since I won't always be the one driving, I had to stick with an ICE engine for another 5+ years. The good news is that EV infrastructure is rapidly improving, so the future of EVs looks promising.

Now, I need some help with the EMI calculation. The car is around 24 lakhs, and I plan to pay 5-10 lakhs using my credit card, with the rest financed through an EMI. I'm not a fan of this approach, but my dad has experience with car EMIs, and I don't. Additionally, the Hyundai executive mentioned an EMI interest rate of 8.85%

Are you Purchasing for Business Purpose ?

If yes,You can Claim Deduction too w.r.t. Interest and Depreciation as you are Sole Proprietor

 

[vaibhav111]

Are you Purchasing for Business Purpose ?

If yes,You can Claim Deduction too w.r.t. Interest and Depreciation as you are Sole Proprietor

whatttttt.. i can.. damn.. alright would research on this. and ask CA. now regarding business purpose I'm buying cause i sold my car cause it was now 9yr+ old and needed one car only. so not buying car just for the purpose of business but business is evolved for sure. my dad in a partner is partnership fir so can he also claim the deduction. cause car would not be in my name.

 

[sidp]

Now, I need some help with the EMI calculation. The car is around 24 lakhs, and I plan to pay 5-10 lakhs using my credit card, with the rest financed through an EMI. I'm not a fan of this approach, but my dad has experience with car EMIs, and I don't. Additionally, the Hyundai executive mentioned an EMI interest rate of 8.85%

1. Definitely ice >>>>ev any day. Hyundai is reliable, fun to ride. But not safe and little expensive to maintain(depends on service centre). But I am sure you have read reviews and have your priorities. So we shouldn't delve into those.
2. As you have your own business you should register it under firm's name. Registration and insurance is higher but depreciation benefit will cover it very easily. Technically it should be used only for firm's business and should have direct value addition but As long as you aren't putting a lot of vehicles in firms name it shouldn't be a problem. Even if the advance was paid under your father name, you can still change, no issue as long as they haven't registered the car.
3. Buying on emi isn't such a bad idea. Cuz you can claim the interest as expense. as per your tax bracket you save a portion of that interest expense. So instead of paying cash if you invest that capital, you will definitely earn more. Also everyone has fy target, you could get a good deal.
4. If you pay through credit card also you can save good amount. Most dealer will ask for 1.5-2%. But you can negotiate it. Many people have paid full amount through card without paying anything extra. Depends on negotiation. But it will be tough for a car in high demand like Creta. Still you should be able to get it down to 1%. Which you can recover during bill payment using hdfc esp/indusind/idfc wealth/rbl etc.

Your infinnia will give 3.3% right? Best way is to pay advance through cc. Most of the time they Don't ask for extra during booking. Once they accept CC even for a small amount, they are bound to accept for rest. It is not a legal issue. But if they don't accept it, it nullifies their business agreement with bank, which can cancel their pos machine.

It also helps to find mcc code to calculate what will be final return. You can also ask if dealer is accepting prepaid cards. That will give you better return. you can buy some this month and rest next month.

5. It's true right now interest is at highest. So floating rate will be beneficial in long run. But do check what is the reference rate. And how frequently the rates change. Also you have to check in case of interest change, will emi be constant. What they do in case of interest increase, is they keep the emi constant. So term increases. And you end up paying much more. Also they don't even inform while doing so. Many people got screwed during financial crisis and even during covid because of this.

6. You can negotiate processing fee also. If you have hdfc preffered or imperia a good portion of processing fee is waived. But if you plan to take hdfc loans, you must check preclosure fee. Hdfc preclosure fees are pretty high.

In future if interest rates drastically increases or you have a lot of cash but don't have investment opportunity or may be want to decrease debt exposure for home loan or something, you must have a way out. So preclosure Clause is pretty important.

 

[Deleted member 9785]

So, I previously inquired about the Tata Nexon EV. However, multiple threads on https://www.team-bhp.com/forum/ reported software issues in Nexon models from October-December. Since I won't always be the one driving, I had to stick with an ICE engine for another 5+ years. The good news is that EV infrastructure is rapidly improving, so the future of EVs looks promising.

Now, I need some help with the EMI calculation. The car is around 24 lakhs, and I plan to pay 5-10 lakhs using my credit card, with the rest financed through an EMI. I'm not a fan of this approach, but my dad has experience with car EMIs, and I don't. Additionally, the Hyundai executive mentioned an EMI interest rate of 8.85%

Hyunday has poor safety ratings as per GNCAP