Luxury car loans in India!

By | September 17, 2012

With the prosperity ushered in by the economic growth in the country and growing incomes of individuals there has been a steady increase in the demand for luxury cars in the country. With an eye on this powerful market many international luxury car makers have made their presence felt in the nation either by setting up production and distributorship facilities or only selling pre-assembled luxury cars in the country. These car makers intend to tap in the growing ambition among the upper middle class of India whose income generating capacities are rising in geometric progression over the past decade and a half. The financiers too want a piece of the cake and have therefore introduced several wonderful schemes to finance the high end luxury cars.

The Manufacturer and Financier Tie Ups


The key to pushing up sales in this segment lies in creating unbeatable financing schemes that will lure the prospective customer from mid segment to luxury cars. With this objective many of the luxury car makers have got into arrangements with the leading financing institutions in the country to promote the sales of luxury cars. Some key features of such tie ups are:

  • Attractive cash discounts for the customers on luxury cars.
  • Much lower rates of interest in case of luxury cars as compared to small and mid segment utility cars.
  • Variable repayment options for the customers as per their convenience and preference.
  • Personalized attention to the financial needs of the luxury car customers with a view of creating customized financing solutions available at the doorstep.

Points to keep in mind when going for a Luxury Car


There is no denying of the fact that there has been substantial increase in the buying power of Indians which has set off a ever increasing desire for better lifestyles among most upwardly mobile people in the country. However there are also many instances of people getting carried by the glitter of the marketing campaign and ending up buying luxury cars that they really don’t require or are unable to afford in the long run. Here are some of the points that one must bear in mind while deciding to buy a luxury car through a loan.

  • Despite the attractive discounts on loans for luxury cars the price of the car itself shall be very high.
  • Some of the discounts offered in the loans may not provide any relief in the real terms over a long period of time.
  • A luxury car will have a much higher insurance premium.
  • The maintenance and mileage of luxury cars is equally costly.
  • One may not be able to take these luxury cars to all places keeping in mind the actual road conditions in the country thereby reducing its overall utility for the buyer.

With the plethora of high discount and low interest finance schemes available in the market the sales of luxury brands such as Volkswagen, Audi, BMW and Land Rover is on the rise even under recession conditions.

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