Car finance facts for companies

Car dealerships, both single and multi-branded today are present in every nook and corner of our city streets. While they continue to serve their purpose of being the most accessible touch points for satiating a customer’s interest in buying a new car, it’s a known fact that their ability to assist their customers and in adequate financing depends largely on the schemes and interest rates being offered by the private/nationalised financial institutions working as the financing partner to the brand.

Today, almost every major car company selling their wares via a vast network of dealerships pan India have tie-ups with their most preferred bank which tries to influence the consumer’s buying decision through attractive EMI options and reasonable interest rates among other things. HDFC for example allows its lendees to avail up to 100 per cent finance on his/her favourite car or even better fastracks his loan if he is a HDFC bank account holder. Like HDFC, Axis Bank, ICICI, State Bank of India and numerous other private and nationalised financial institutions have their own credit on offer systems, which vary as per the vehicle segment and its ex-showroom pricing. 

Certain manufacturers even go to the extent of forming a captive finance consortium by joining hands with a handful of finance companies, like Maruti Countrywide and Maruti Finance that has tie ups with HDFC, ICICI, GE Capital, Maruti Udyog Limited etc to strictly cater to the nationwide needs of Maruti car buyers.

Besides the traditional business establishments that have made car financing just one of their many credit lending verticals, certain pilot institutions which are dedicated to the cause emerge from the manufacturers themselves and naturally serve and work towards only getting their customers the best credit possible to improve sales and thereby profitability.

Daimler Financial Services, the financial arm of the global auto giant Daimler is one such institution and is now operational in India in a very big way. Customers of its luxury car brand Mercedes-Benz, and soon to be launched BharatBenz CV range can reap the benefit from such services. They are more convenient to transact with, and have a clearer focus as compared to regular banking procedures.

With e-commerce now playing a decisive role in new car purchases, a number of online portals today offer customers complete access to model wise product information, its asking price (region wise) and even have built in EMI calculators to help you understand what sort of long-term expenditure your new car will demand from you.