Bank is asking way too much down payment

[dcarlover]

Assalam o Alaikum.

What is a fair down payment for a 2.5m-3m used Toyota on a monthly salary of around 80k per month? My cousin checked with his UBL bank manager and they said it has to be 60% of the purchase price which in my opinion is too much.

[saad.ikram.5688]

Down payment depends on how long the loan is for

[dcarlover]

7 years.

[KamranAslam]

Varies from bank to bank ... Max is 70% down to my info.

[dcarlover]

So at what salary the down payment is within normal down payment ranges like 15%-20% ?

Because otherwise if getting a loan from bank with 60%-70% down, it would be best option to come up with extra cash and buy the car outright cash.

[KamranAslam]

55K + with no occupancy at your ECIB.

CNIC's with Credit card and small loans in process or any previous settlements comes with the options of 40/50/60% down payments.

[dcarlover]

@KamranAslam What does "no occupancy at your ECIB" mean?

[KamranAslam]

^^^^ Means no other active loans in the past.

Now coming back to your case:

I will say the bank is correct 80K Salary / 2.3mil car at 20% down comes at 46K installment , so here he will have to go more then 50% to get the installment in 25'sK

[KamranAslam]

Calculations with 60% down.

[ali454]

Whats the markup these days?

[Sarkaar]

Do our banks have credit rating history checks? Is it possible to bargain the rates if you have history to settle loans on time?

[dcarlover]

@KamranAslam What if someone does not have any previous loans and his income is 100% disposable except house rent and other regular monthly expenses? In that scenario, for how much an 80k salaried person can be qualified for and what would be the down payment required?

[KamranAslam]

Living in a rented house and opting for a car on installments does limits your financed amount range, even with no loan history.

Is he married and with kids ?

If in Karachi, send him to me I work for Suzuki will try to get him cleared via comfortable bank, I mean a bank with less questions.

[KamranAslam]

Whats the markup these days?

New car, 11.75 or so

Used Car 12.65 or a lil different from bank to bank.

[KamranAslam]

Do our banks have credit rating history checks? Is it possible to bargain the rates if you have history to settle loans on time?

Yes your cnic keeps a complete record for every loan, credit, transactions via ECIB check list.

Rate can not be bargained at saliered level, but at corporate it can between 2 to 3%.

[dcarlover]

@KamranAslam Thanks. Can you send your phone number or email address please. You only can help with Suzuki cars or Toyota as well?

[KamranAslam]

have few Toyota's in used cars. contact info sent.