After car prices now car loans go dearer in India

The month of September has come with a couple of bad news for car buyers who were planning to buy their prospective car in the month

. Just a few days after some major auto makers in the Indian auto market announced their plans of hiking the price of their cars from September, there comes the news of the leading Auto loan lenders in the country increasing the interest rates on car loans by 50 to 100 basis points (0.5 to 1.0 percent). Due to this hike, the car loan rates have touched the double digit mark after a long time, since last one year it had been floating in the range of 9 to 9.5 percent.

According to industry sources, the increase in the car loan interest rate will be different for different segment of cars. For instance, where the B-segment (compact) cars will now attract a rack rate of 12 percent, the C-segment (sedan) cars will now be attracting a rate of 11.5%. The leading car loan lenders that comprise of banks like Kotak, ICICI and HDFC, claimed to have confirmed the hike in car loan rates.

According to a statement given by Mr. Sumit Bali, CEO of Kotak Car Insurance, to a leading media group, the company has increased the loan rates for new and used cars and the net rate to customer would now range between 10.5% and 11.25% depending on the tenor and model. One the other hand, Mr Arvind Saxena, director, (sales and marketing) at Hyundai Motor, said in a statement that with the festive season round the corner, manufacturers are looking at robust sales. He added that the company hopes that there aren't further interest rate shocks from lenders which could affect sales. According to him the on going sales momentum will remain unaffected by this hike.

As per some industry experts, the interest rates will affect car sales in the Indian market considerably. However, the automakers believe that the effect of the car loan rate hike will be absorbed by the market due to ongoing high demand momentum.

After car prices now car loans go dearer in India

By: Cardekho2010

POST COMMENT

Use Search Engine Marketing To Improve Ranking Nissan India registers 1249 nos total sales, top variant Nissan Micra achieves sales of 1182 units Use Search Engine Optimization For Good Rankings General Motors India's August 2010 Sales show an impressive growth of 34% at 7941 units Audi takes the cake when it comes to luxury SUVs Mercedes Benz Grand Edition ready for launch Indianapolis Kia car dealerships feature 'Intelligent AWD' on newest SUV Ford registers a massive 220% sales jump in Aug 2010 Indianapolis Nissan inventories may start to incorporate some of the best Mercedes offers The 2010 Ford F-150 Has A Host Of Engine Sizes Brooklyn used car options make sense to many local buyers Audi sold 250 cars in August' 10 Have a Great Vacation on a Budget!