Tata Motors has launched a scheme with an attractive interest of 8.99% for a car loan tenure of 3 years on the Tata Manza and Indica Vista. Is this a good deal?
Tata Motors has joined the league of car manufacturers offering schemes on their cars to push sales in a sluggish season. With interest rates expected to up even further, this surely is one big piece of good news.
In addition to the interest rate reduction, Tata is also offering exchange bonus and corporate discounts. We have worked out for you the total discounts that are available if you were to buy a Manza or an Indica Vista.
Tata Manza discounts
The top of the line Manza Quadrajet Elan (diesel) comes at a price of Rs. 7.67 lakh. Tata offers Manza buyers benefits like a Rs. 20,000 exchange bonus, a minimum corporate bonus of Rs. 4000 and an 8.99% interest.
What do I save?
The EMI for the Manza Quadrajet Elan will be Rs. 21,752 at an interest rate of 13% for a tenure of 3 years. However, with the new interest rate of 8.99 %, the EMI will come down to Rs. 20,594. That amounts to a saving of Rs. 41,688 over a period of 3 years.
(Assuming loan amount is Rs. 652,566, or 85% of the car price, and EMI is for 3 years.)
Total value of offer: Rs. 65,688 (Exchange bonus+ corporate bonus+ saving on EMI)
If you were looking to buy other Manza variants, here is what you should expect to get as discounts:
MANZA DISCOUNTS CALCULATION
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So the combined savings for Manza could range from Rs 53,000 to Rs 65,000.
Indica Vista discounts
Tata offers different discounts on different models of the Vista. Free Insurance and a corporate discount worth Rs. 3,000 is standard on all models. The Vista TDi comes with an exchange bonus of Rs. 10,000 while the Quadrajet and Safire get an exchange bonus of Rs. 15,000 each. The 8.99% interest scheme is valid on all three models of the Vista.
Let’s calculate how much a top-end Tata Vista Quadrajet Aqua would save after availing the 8.99% interest scheme.
What do I save?
The price of Tata Vista Quadrajet Aqua is Rs 5,05,931, which means an EMI of Rs. 14.334 for a period of 3 years at an interest rate of 13%. With the new scheme the interest rate comes down to 8.99% and the EMI comes down to Rs. 13,572. That’s means prospective buyers will save Rs. 27,432 over a period of 3 years on interest amount.
(Assuming loan amount is Rs. 430,041, or 85% of the car price. And EMI tenure is 3 years.)
Total value of offer: Rs. 45,432 (Exchange bonus of Rs 15,000+ corporate bonus of Rs 3000 + saving on EMI of Rs 27432)
If you are planning to buy some other model of the Indica Vista, use this table for discounts you should get.