tag:blogger.com,1999:blog-6283845125208268798.post3851808805189587075..comments2024-03-27T11:21:40.742+04:00Comments on Muscat Confidential: Actual Local Investigative Journalism - Legal limits on Car loans avoided.Undercover Dragonhttp://www.blogger.com/profile/10577931944980469254noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-6283845125208268798.post-2918252627163766762008-12-05T13:10:00.000+04:002008-12-05T13:10:00.000+04:00Bahwan were a nightmare to deal with. So much so t...Bahwan were a nightmare to deal with. So much so that I decided not to buy with them. <BR/><BR/>In the end, I managed to pay only 3% down payment on a vehicle and financed 97% of it. <BR/><BR/>In hindsight - having watched the depreciation, and the massive charges on the finance deal, I will never buy a new car again. <BR/><BR/>Year Ones for me all the way now.<BR/><BR/>JDJet Driverhttps://www.blogger.com/profile/08244136139124941733noreply@blogger.comtag:blogger.com,1999:blog-6283845125208268798.post-84017178854754332132008-12-05T01:58:00.000+04:002008-12-05T01:58:00.000+04:00its simple the dealer will stop advertising with T...its simple the dealer will stop advertising with Times Of Oman, they will be forced to chill and write rosy stuff about the dealer...<BR/><BR/><BR/>Its happned beforeColOmanhttps://www.blogger.com/profile/10782246242397086830noreply@blogger.comtag:blogger.com,1999:blog-6283845125208268798.post-49834159545305981172008-12-04T22:31:00.000+04:002008-12-04T22:31:00.000+04:00Not all dealers are like that. When we got my wife...Not all dealers are like that. When we got my wife's car this past summer we decided to take finance from the bank instead of a finance company. I got a really good interest rate from the bank and then managed to get the dealer to give a big discount on the list price. I asked the dealer if they would give me an invoice on the list price if I want to reduce my my participation. They refused. They gave the invoice for the discounted price and I paid 20% with the bank kicking in the other 80%. I was really impressed.<BR/><BR/>The worst dealer when it comes to auto finance is Bahwan. They refuse to quote a price on their cars unless they know how you will finance it. And if you want lease finance they will dictate which finance company you can go to. They do not have a one price for all policy. You cannot simply negotiate the lowest possible cash price and then take that price to a finance company.muscatihttps://www.blogger.com/profile/15955758251080080159noreply@blogger.comtag:blogger.com,1999:blog-6283845125208268798.post-55200532540846137602008-12-04T20:35:00.000+04:002008-12-04T20:35:00.000+04:00So essentially what you're saying is that a custom...So essentially what you're saying is that a customer should negotiate the car price and the loan terms for the purchase independent of each other and with separate entities?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6283845125208268798.post-28564495427190646832008-12-04T11:45:00.000+04:002008-12-04T11:45:00.000+04:00Forget about new schemes to beat the 20% down paym...Forget about new schemes to beat the 20% down payment requirement. The bigger scandal is the way some of the larger car showrooms force deals to be structured to the detriment of customers.<BR/><BR/>One of the large dealers asks all finance companies to have a common lending rate to customers so there is no price war that spills over to customers. However, they strike deals with the finance companies to charge less by 1-2% and pocket the difference. So far so good. But the finance companies don’t want to take this as an expense. So they add this fee to the loan amount and book a higher loan in the customers name. The customer remains unaffected if he runs the loan through the tenor completely since his installment remains the same. However many customers foreclose to buy new cars or consolidate loans through banks. They don’t realize that the outstanding that they pay includes a portion of this fee that is paid to the dealer which is close 8% on the balance of the loan. The only ones who realize are the ones who foreclose in the first few months and are shocked to find that the loan outstanding is greater than the loan amount they originally took. These are managed by the finance company and the dealer by giving ‘rebates’ to customers.<BR/><BR/>Dealers like this cozy relationship so much that they insist on not creating a hypothecation on the car, even if it is financed by someone. That way, they ensure that the financier if he wants a hypothecation is forced to pay the fee. And as a consequence of this, customers don’t get lower interest loans directly from finance companies and other banks!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6283845125208268798.post-60411969382137149172008-12-04T09:16:00.000+04:002008-12-04T09:16:00.000+04:00I actually was wondering, how is one's credit-wort...I actually was wondering, how is one's credit-worthiness determined in Oman? More importantly - how do I qualify for the bestest rate on a car loan?Anonymousnoreply@blogger.com