Mahindra, Nissan, Skoda-VW Will Let You Buy A Car Now And Start Paying In 2021

Pay larger EMIs after a gap of few months but get the car right away

• Finance schemes introduced during COVID-19 lockdown offer deferred payments on buying a new car.

• Mahindra, Nissan and Skoda-Volkswagen offer delayed EMIs till 2021 on select models to eligible customers.

• Maruti Suzuki, Hyundai and Renault are allowing customers to postpone the start of EMIs by a couple of months. 

The lockdown has had an adverse effect on the entire car buying process. With most buyers wary of spending during these uncertain times, carmakers have come up with attractive finance schemes to reduce anxiety and encourage sales. One such offer is ‘Buy Now, Pay Later’, wherein customers can start paying EMIs much later than the date of purchase.

While many carmakers are offering deferred EMI payment plans for two to three months, only a handful are willing to delay EMI payments until the beginning of 2021. Mahindra and Nissan recently announced this finance option for select models from their lineup, subject to the eligibility of a buyer. Skoda and Volkswagen offer this scheme under the name ‘EMI Holiday’ wherein customers can opt to defer EMI for up to the first 12 months, depending on the model.

Related: Mahindra Introduces Special Finance Schemes Amid COVID-19 Crisis

Of course, the delayed EMI plan translates into bigger EMIs for the remainder of the loan tenure but it reduces the immediate stress on one’s finances. Unlike balloon finance schemes where the EMI is low for the first few months and a lumpsum is charged towards the end of the loan tenure, these EMI holiday schemes charge next to nothing. In some cases, the EMI amount is zero and with the likes of Skoda-VW, the EMI for these months is set at Re 1.

Other carmakers are offering shorter versions of the ‘Buy Now, Pay Later’ scheme. Maruti is allowing a delay of 60 days and Renault of three months till the first EMI. Meanwhile, Hyundai has introduced a low-EMI finance scheme for reduced EMIs for the first three months. Jeep has also rolled out new finance options that allow buyers to pay lower EMIs for three months every year for the duration of the loan tenure.

These offers come as a huge relief in these extreme circumstances even as the global pandemic continues to wreak havoc on the entire world. The delayed repayment option gives customers the time to reorganise and find stability without having to delay their purchases. However, make sure to understand the finer details of the scheme before signing on that dotted line. 

As for buyer sentiments, our survey revealed that more people will be looking to buy a personal car post-COVID-19 and delayed payment options could help facilitate those purchases sooner.