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Honda Cars India on Monday said it would facilitate 100 per cent ‘on road’ and ‘ex-showroom’ funding deals with HDFC, Axis and ICICI banks.
The step is in the wake of the demonetisation of the ₹500 and ₹1,000 notes, the company said, adding that it pre-empts that the car sales would be adversely affected.
The collaboration with the banks is intended to facilitate car buyers in the current circumstances, it said.
The special retail finance offers from ICICI Bank include loans up to 100% of ex-showroom prices of the models and 90 per cent of the on road prices, at an interest rate of 9.50 per cent on new cars and 13.75 per cent on used cars (Honda City and Honda CR-V) and at 9.65 per cent for news cars and 14.25 per cent on used cars (Honda Brio, Honda Jazz, Honda Amaze, Honda Mobilio and Honda BR-V).
The offers from HDFC include loan value equivalent to 100 per cent of on-road prices of all Honda cars (except Honda CR-V) while Axis bank is offering up to 100 per cent on road funding for 96 months at a salary of ₹25,000 for all Central government employee and beneficiaries of the pensioner scheme (under Seventh pay commission), the company said.
“There will be a big effect on the overall car buying process and the cash component buying is expected to go down. Also, the margin money contribution will be affected for all customers,” Jnaneswar Sen, Senior Vice President, Sales & Marketing, HCIL, said.
Therefore, to ease deal closure and give comfort to the customer HCIL has negotiated 100 per cent funding deals with these banks, he added.
The collaborations would facilitate both the salaried, and the self-employed individuals and would cover all the models in the HCIL line-up and can be availed at all Honda dealerships across the country.
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