i have a company owned car. i want to transfer the car in my name along with the loan? please tell me will i be able to transfer the loan or i will need to refinance the car? Nimish
Truly spking, I am shocked to hear your financial situation. Two wheeler is good for you as of now. But, I am not sure of the reason why you bought it. Hence, I would not comment about that.
All I can say is that: If at all you need a car, then go in for one with a lower EMI - good old Maruti 800 @ 4300 pm might work for you.
Moreover, I don't see any logic using your credit card for the purchase. Is that for your initial investmen for the purchase ? if so, try to convert it into an EMI option - which many cards offer. Might be you can save some interest.
1. In the whole context the sender has not specified whats the linkage between the car loan and the credit card thats causing him to live in debt
2. There is no reasonable linkage between car loans and credit cards and most of the banks dont offer limits that would permit a person to purchase even a second hand car using their credit card
3. With the salary that this gentleman(i assume) has mentioned, the most likely limit that this person would get is not in excess of INR 30,000 (5 to 6 times of monthly salary net of all out goings). Please tell me which car is available for 30K
4. If the customer is in a debt trap it is mostly likely that he has borrowed from a financier who is not a regular finance company and is therefore charging murderous interest rates.
5. An Emi of the kind this person has described indicates that the loan is for about INR 58K that means it cannot be for a car unless this person had enough money to make a down payment. If the person had that much money then why did he take a loan??
But all in all there is no mention nor reason to castigate credit card for his woes.
People should do some financial calculations before getting sentimental about things. Here in the above case you would not be able to get through unless you sell away the car or some fixed asset or even both because the value of car has been depreciated and the compound interest on card might have increased dramatically. Once the limit of card is reached you will be bothered by recovery department of credit card company, and they are really harsh when it comes to recovery. So why wait for the worse to come. I suggest you sell your car immediately and also pay off both your car & credit card loan asap, else you might end up in a situation where you monthly income is 8000 and your expense are 11,000 which is still increasing.
First of all, this was your wrong decision to buy a car when u have such a low income. I don't understand how could you think of buying a car when you know that your income is so low. Now since you have bought the car i would suggest you the following:
1. Either sell the car and get out of debt as soon as you can. 2. Or if you dont want to do that then apply for another card and try to transfer the balance onto other cards. The reason i am saying this is that most of the cards provides balance transfer facility, which lets you transfer the balance on other cards at lower interests and sometimes even 0% . If you dont do this u'll be in huge debt.
Personally i would suggest you the first option and concentrate on getting a better job. Do some savings and after you have enough, you can consider buying the car. Dont get too many things too quickly. Plan your future. Dont make decisions straight away.
Uday i cannot comprehend how you can a car with emi of Rs. 7000 when your take home is Rs. 8000. It is very illogical on your part. Dispose of the car immediately and return the loan amount. Settle for a 2 wheeler as of now and go for a 4 wheeler once your take home + other incomes increases.
