This is a good news for the person who is willing to buy a car this year.According to According to auto finance experts, passenger vehicle financing rates are now the lowest in 10 years. In January the lowest interest slab is now gone down to 8.75%.Now the interest rates back to January 2006 levels.
Ashok Khanna, senior executive vice-president and business head, vehicle loans, HDFC Bank said, "There have been two or three rate cuts in the past one year which have made the rate regime very attractive for customers".
Vyomesh Kapasi, chief executive, Kotak Mahindra Prime added, "Currently the super luxury segment vehicles attract around 8.75-9% rates, mid-size sedans like Honda City or Maruti Suzuki Ciaz around 9.25%, B-segment premium hatchbacks like Maruti Suzuki Baleno, Hyundai i20 around 9.5% and entry level cars like the Maruti Suzuki Alto around 10-10.25%. At this level, the rates are lowest in recent memory".
How many do rates come down?
In 2006 Big size car rate drift around 10-10.25 per cent and the mid-size cars rates were 9.5-10 per cent.In 2007, the interest rate had jumps to 14.75 percent for a mid-size car and 14.5 per cent for a big car.The rates get stable a bit in February 2011 the rate range 11.5 to 13.5 percent depending on vehicle type and loan tenure. In 2013 the interest rate between 10.5-11.5 percent depends on down payment, loan amount and credit history.In 2014 the slab lowest down to 10 per cent for banks and 9-9.25 percent for some NBFCs, big volume mid-size cars rates high at 10.25-10.75 per cent.