Car Finance Discount Which Never Was

This incidents dates back to year 2002 when I was in the process of buying my first car. Like any other person, I was obviously happy with the thought of owning a car and not having to bother about rain or sunlight while commuting. And also like any other person, I was looking for the best deal.

As it happened, I noticed few advertisements in the newspaper where car dealers were offering additional discounts on car finance options. I was elated to know that but wanted to be sure if that is the case. So I visited a Maruti car dealer "Allianz" in Delhi's Safderjung Enclave area. I met Citibank executive named Neeraj there and he explained me the scheme that if I get my car financed then I will get some additional discount of approx. rupees 8 to 10 thousand. That guy gave me another surprising statement that if I paid all my EMIs on time then Citibank may waive last EMI. It was like icing on the cake. This was a very lucrative offer for me and I fixed the deal.

But when it came to make initial payment, he insisted on paying first EMI in advance. It seemed a bit odd to me but I agreed to it, perhaps the joy of owning the car prevented me from arguing further.

I got the delivery in next 2-3 days and was living happily ever after until a sudden thought struck me one day after 2-3 years. While discussing the car loan options and procedures with one of the friend, suddenly a thought crossed my mind that my car loan might consist of 35 EMIs instead of standard 36 (for a 3 year loan) and the dealer charged me some amount as first advance EMI. It was invoiced by the dealer not by the financing bank. So effectively there was no additional discount at all.

I rushed back home in the evening and checked my car loan documents. I was dot on the trick though a bit delayed. It was a 35 months loan and then I recalled his statement:

"if I paid all my EMIs on time then Citibank may waive last EMI."