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Frequently Asked Questions |
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| The Residual Value of a car is its estimated value, based on its depreciated value, at the end of a specific term. It is simply the car's worth at the end of a certain period. |
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| You have to pay the bank the difference between the car price and the pre agreed residual value For example if the car price is Rs.1,000,000/- and the pre agreed residual value is Rs.600,000/-, all you have to pay off is a liability of Rs.400,000 along with financial charges during the tenure. The security deposit you pay upfront will be deducted from the Rs. 400,000/- thus resulting in a lower finance amount to be paid off during the tenure. Since the security deposit is being adjusted in the finance amount therefore it will not be returned at the end of the term. |
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| There are no hidden charges. All applicable charges are clearly communicated and agreed by you as your application is processed further. |
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| The car's pre agreed residual value is deducted from the finance amount resulting in low and affordable monthly rentals. Under the Buy Back Guarantee, HBL will take care of this residual value for you, should you choose to return the car to HBL at the end of the lease. |
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| The residual value will be pre agreed and deducted from the finance amount resulting in very low monthly rentals. Throughout the lease tenure you will only pay off part of the car's price or in other words you pay for that portion of the car's value that you use. During the lease tenure you will not be paying off this residual value and it will remain as an outstanding liability till the end. Therefore, if you want to take full ownership of the car, you will have to pay off this residual value. |
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| Why should I opt for this product when I am not getting ownership of the car at the end of the lease term? |
| This product enables you to drive a better / higher value car at very affordable monthly rentals and pay only for the value of the car that you use during the lease term. Plus, you definitely have the option to take full ownership of the car by paying off the outstanding residual value to HBL at the end of the lease period. |
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| As you will agree, anticipating or forecasting value of a car three, four or five years from now includes various factors, overall market dynamics, introduction of newer models, overall environment, regulations, etc. Hence, a team of experts with representation of all business partners' review assess and decide upon the residual values. |
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| This is not a rental service. This is a product to facilitate you and provide you maximum convenience in improving your lifestyle. Through this product, driving a car of your choice / higher value car and changing the same and upgrading at regular intervals is made convenient. Moreover, in case you desire to own the vehicle at the end of the term, there are various options available for you which is not possible under a rental service. Also, in a car rental arrangement a future value for the car is not assigned, you do not have the option to own the car, and you do not have the option to sell the car and benefit from the gain on sale. |
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| The security deposit you pay is offset against your dues for this facility only and cannot be returned or adjusted in the new car's financing. The amount of security deposit you pay has a direct effect on the finance amount that you will pay off during the lease tenure i.e. the security deposit is deducted from the car's remaining value thus lowering the finance amount. When you opt for another vehicle at the end of one facility, it will be a fresh facility with its own security deposit requirement. |
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| At the end of the term, you will have the following options and you can choose one that best suits your requirement. |
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Just return the car and opt for another car if you wish to do so at that time. |
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Sell the car at a profit in the market and settle the residual value with the Bank while keeping as your gains any amount from the sale proceeds above the residual value |
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In case you wish to retain the car, you have the option of getting the outstanding residual value financed over a specified period thus enabling you to pay off the same in easy installments subject to the bank's terms and conditions |
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| The insurance premium you pay includes comprehensive coverage as well as the residual value. In case the car is damaged in an accident, the same is covered under the comprehensive insurance. However, the residual value is committed after a fixed term which is agreed at the beginning and cannot be claimed prior to maturity or expiry of the agreed term. |
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| The monthly payments are arrived at based on the car price, the security and the residual value. Hence the payments may differ from car to car. |
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| Cars financed under this program are for personal use only. The regulatory environment does not allow usage of these cars for onward rental or any other commercial usage. The same may qualify as a criminal offense. |
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| As you will agree committing a residual value carries a risk of fluctuation where you return a car but it is not able to fetch the residual value committed. Since this presents itself as a risk, the same is reflected in the rate of premium. Although you must note that the best possible arrangement has been made where the premium rates are higher but by a very small margin. |
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| There is absolutely no restriction and you can opt for any car of your choice subject your own budget and ability to meet your monthly obligations towards the bank for the car you choose. |
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| Under this product, a wide spectrum of cars are available and we are sure one suits you best. We at HBL ensure that an amicable solution is available for all. |
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Car Calculator |
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Car Navigator |
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HBL CarToCar Finder |
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