Friday, 14 January 2022
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Greetings Team MyCarHelpLine !

Please help me with the following queries :

1. Should I go for Floating Car Loan offered by PNB @ 6.85% or Fixed Car Loan by SBI/ICICI @ 7.25% ? Please advice me if you have a better deal.

2. I have obtained Insurance quotes from various parties viz. American Express ( partnered with ICICI Lombard ) , National Insurance. Please advise me which add-ons are best suited for me ? Should I later negotiate with dealer based on the quotes in my hand ? I have attached the quotes I have received so far. Please advice me if you have a better deal.

3. Should I go for Bharat(BH) Series Registration ? For availing BH Series, I shall have to register vehicle in the name of my mother in law who works at Indian Railways in Lucknow. Kindly advice whether the effort ( opting Co-applied Car loan and drafting rental agreement in Pune with mother in law included) would be worth it or should I for normal registration just in my name ?

4.Should we buy the accessories from dealer ? Should we go for PPF or Ceramic for midnight black color and from where ?

5.Can you help me with PDI checklist ?

Waiting eagerly for your support :)

Saurabh Khare,
10 months ago
Dear Saurabh ji,

Hi, hope doing great

Sure, happy to assist !!

1. Car Loan Car Loan Interest rates in floating are dynamic in nature.
As interest rates have almost bottomed out in 2021 and inflation a concern - its expected that this soft trend of interest rates will reverse in 2022 and in coming years. So - recommendation for you is

a) If loan horizon going to be 3 yrs then basis existing 40 bps differential in between SBI and PNB - it may still be worth to take chance with PNB
b) However, if loan horizon going to be 5 yrs or even higher 7 yrs then recommend to lock in rates with SBI and opt in with 7.25% for better peace of mind. Do note that existing 7.25% rates are at its historic lows in SBI and is unprecented.

2. Add on Insurance: Some recommended must add on covers are :-
a) Zero Depreciation : Covers depreciation aspect on plastic, paint and rubber parts
b) Engine Protection : Covers engine damage due to oil leak or water ingress
c) Key Loss Cover : Considering Hefty cost of Car Keys in present times where if key lost can cost in rs 15000 and low premium of just 400 to 500 approx - recommended to opt for cover.

Rest based on risk appetite may consider
a) Return to Invoice : covers car at 100% On road price as new car are prone to theft, as against regular insurance which is done at 95% of exshowroom price as IDV
b) Consumable cover : covers consumable items like nut, bolts, seals, fluids if required to be replaced due to accidental damage

May read more on Car Insurance add on covers

3. For Bharat Series: 2 Factors which depends
a. Are you in transferrable job or plan to relocate to other location
b. Are you saving in going with BH Series number plate (on 15 yr cycle) as against state level number plate

If answer to it is yes then should opt for same
You can compute Road tax on
> Bharat Series Car Tax Calculator
> Pune Road Tax Calculator

4. Accessories Packages are not recommended.
Generally is seen that accessories are priced at premium over dealer counter but still some accessories
> which involve Wiring work
> Chrome Accessories (as after market chrome accessories are mostly of mediocre quality)

are recommended to opt from showroom
PPF is pretty expensive treatment - may cost to tune of 1.5 Lakh to 2 Lakh for a car like XUV700
Ceramic - well you need to be specific on why going with Cermac, what exact is your expectation towards Ceramic - as Ceramic life varies basis number of coating and dont expect to offer protection against dirt

5. PDI Checklist : Pls refer Car PDI Checklist

Hope should help !!
10 months ago
Hi Gagan Sir,

I am really thankful for your responses and they undoubtedly helped me in making me 'SASHAKT' :D

Here are few of my follow up questions :

1. I am being offered 18 Lakh floating car loan by PNB at 6.75 % with zero foreclosure and part payment charges . They have kept the loan tenure as 7 years while I did not mention that anywhere. Will this be a good deal ? Please keep in mind :
a) EMI as per calculator is coming out to be Rs 26947 for 7 years with 4,63,588 overall Interest. However if the tenure was 3 years, the EMI would have been 55,373 with 1,93,435 overall interest. I can park the remaining money 55,373 - 26,947 = 28,426 per month in some other instrument of investment offering an average 10% return. Is it wise ?
b) I might plan to put some money gradually into Loan account say 1 lakh or 1.5 lakh often like after 4 months, 1 year, etc.
c) Floating rate of interest bound to inc or dec based on India's economy.

2. How much amount should be paid to dealer after PDI ? How much should be withhold until delivery ?

3. There is so much confusion about PPF vs Ceramic vs Graphene vs Hybrid ( ppt + ceramic ) . Please help me take a wise decision.

4. I have attached my Insurance quote. Please review if it covers all important aspects. I have opted for Insurance from American Express who have tie up with ICICI Lombard.

Saurabh Khare
10 months ago
Hi Saurabh ji,

Pls find point wise reply

Car Loan

1. Yes, its a Floating rate of Interest

2. As expected in 2022, due to Inflation and higher Commodity prices, Interest rates may see a Nothward movement across world
India wont be an exception. However extent of rate hike may not be steep. Anticipate in 25 bps to maximum 50 bps hike in 2022

3. If you can find an instrument to plough back on funds @ 10% then nothing like same but Fixed one offers lower interest rate
You might think of Equity based funds where although higher return possible but carries some risk too basis huge volatility in Indian stock markets.

4. Well if you part pay in then this will reduce in Principal Outstanding but same wont result in lower EMI but will only reduce in loan Tenure

Amount to Dealer after PDI
Thumb rule is that generally in 90% of cases car delivery taken by buyers within next 5 days
Only in exceptional cases like marriage or some special family occassion delivery is delayed

So if your car delivery to be taken within a week max of PDI then
> Entire Margin Money (exshowroom price - loan disbursement amount - booking amount) can be paid back to dealer
> RTO and Insurance amount to be released max 2 working days before delivery

PPF vs Ceramic vs Graphene vs Hybrid ( ppt + ceramic )
I understand lot of emotional value attached wih the car
But such coatings have different appeal
PPF is an expensive treatment plan where an invisible film put on the car and having a car like XUV700 PPF done can cost upto 1.5 Lakh and also life of such film is close to 5 yrs post which some kind of yellowness may occur
If go in for higher density film - PPF treatment plan can cost in even higher to extent of 2.5 Lakh even

Ceramic is another treatment plan but it does not protect against Dust and again final finesse and life depends on
> number of coatings
> workmenship at dealer end

Insurance Plan
yes the plan is comprehensive for full coverage including
> B2b
> Engine protect cover
> Return to Invoice
> Key Loss cover
> Consumables too all included

Its like fully secure plan, if seek slight more may cover and opt for Tyre Secure (aka as Tyre Protect) too
Lastly if you are upgrading from old car and selling in exchange of XUV700 then can transfer NCB to it to reduce OD Premium in it

Hope should help !!
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