Most of the vehicles sold in the world are financed by financial institutions. In the case of Nepal around 95 percent of buyers opting auto loan new cars and bikes. At present, only 50 percent of the value of a loan car can be given in Nepal. But, until a few years ago, up to 80 percent of the finance facility was available from various banks.

Purchasing a four-wheeler is no longer just a status symbol; instead, it has become a necessity in today’s time-pressed life. However, before looking for the latest car models in the market, one must remember that buying a car is a significant investment. Many people end up taking car loans at a high rate of interest, which can result in high monthly EMIs.

Look for the best interest rate

Compare the rates of interest offered by various banks or financial institutions before actually getting a car loan. Since there are no standard rates in the market, even a slight difference in the rate of interest could play a huge impact on the amount that you have to repay the bank. The rate of interest differs from floating to flat and varies from lender to lender. Obtain quotations from different dealers of the desired vehicle. Every car dealer has a tie-up with different lenders and hence you might receive various quotes on interest rates and other charges.

This can help you in evaluating the deals available while helping you the best deal for your car.

Every bank follows the KYC (Know Your Customer) norms for granting loans. There is a certain set of documentation that needs to be completed and verified along with your credit record to fulfill the approval of a car loan. Prior to buying a car, it can help to get a pre-approved car loan car financing officer from the lender of choice. This guarantees faster processing of the car loan but most importantly, a pre-approved car loan also works as an additional advantage while negotiating with the car dealer.

Choose loan repayment tenure wisely

The most important part of a car loan is the loan repayment terms. Some banks may influence you to opt for a particular loan that may appear appealing to you. For instance, you might be quoted as a smaller EMI amount for a seven-year loan period. But if you calculate the total repayment in seven years you may be in shock. Hence it is prudent to select the minimum loan repayment tenure that can help you to save a lot of money in the long run.

Calculate your loan EMI, processing fees, and foreclosure penalties

Nowadays a number of banks offer easy EMI calculators that can help you to plan your monthly EMI based on the interest rate, thus helping to decide the best-interested rate and loan for your car. Also, look out for processing fees as various banks charge different fees, and hence a comparison of various lending options can help you make an informed decision.

Similarly, you may also have to look into service tax, on whether it needs to be paid as a one-time lump sum fee or to be paid on a yearly basis. Another important factor to look into is foreclosure penalties. Most buyers are unaware of the foreclosure clause and since various banks have different foreclosure rates it is important to choose your bank wisely.

The current bank's rate of interest in Nepal

Scrutinize for schemes and offers. Almost every bank or lender that offers car loans provides a number of attractive offers and deals. Many customers are attracted as the initial amount is paid down in easy monthly installments according to their income.

NIC Asia Bank, which has been establishing itself as an aggressive bank in Nepal, has offered the auto loan at 8.25 percent interest rate for the first time after the lockdown. According to his offer, the interest rate will remain stable for one year and the service charge will be only 0.25 percent.

According to a recent directive issued by the Rastra Bank, Class A commercial banks will be allowed to charge a service charge of up to 0.75 percent. Due to which, banks will no longer be allowed to levy invisible costs in the name of service charge.

The interest rate at a glance

Bank		Interest Rate		Processing Fee
RBB		8.5% upto 5 yrs		0.75%
MBL		9.50% upto 10 yrs		N/A
NIC ASIA		8.25% upto 8 yrs		0.25%
SANIMA		8.25% upto 10 yrs		0.50%
SCBNL		7.59% upto 7 yrs		0.75%
SBI		8.6% upto 7 yrs		0.50%
GLOBAL IME		8.99% upto 7 yrs		0.75%
HBL		9.0% upto 7 yrs		0.50%

Interest rates are subject to change

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Some development banks have also been aggressive in auto loans. Muktinath Bikas, the largest development bank in Nepal, has stated that auto loans can be given at a rate i.e. 9.98 interest rate. Similarly, Kamana Seva Vikas Bank has offered an auto loan at 10.75 percent.

An auto loan is also a priority in the banking sector as it has to make a 50 percent down payment of invoice value of the new vehicles as per the current system. Now, with the outbreak of COVID 19, liquidity in the banking sector is increasing and there is competition in auto loans.

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Private mobile service provider, Ncell has stopped providing additional facility on balance loan. The company has closed such facility from today by issuing a notice on Friday.

 

Ncell had been providing various facilities under the loan service without any service charge. The company has apologized for the inconvenience caused by the closure of additional facilities under the loan, keeping in view the time of lockdown.

 

Under the loan service, Ncell was offering 250 MB data and 250 SMS for Rs 20, 250 SMS for Rs 10 and 25 SMS for Rs 5, 25 minutes talk time and 25 MB data.

 

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The Renault 5 was one of the earliest cars to use molded plastic bumpers (Pontiac’s Endura bumpers were earlier) and while that’s important, it’s not the materials of these bumpers that make them significant.

What’s significant is that the bumpers were designed in such a way that they formed the front lower part of the front wheel arches and the trailing edge of the rear wheel arches. That’s not how cars were usually built back around 1972.

All-metal wheel arches in the usual bodywork, tacked-on bumpers. This was the norm then, and well into the 1980s.

By the 1990s, though, things were changing. Nearly every car was becoming more like the Renault 5 in this one specific way.

It’s pretty much standard practice now, the Renault 5 was the first car produced in real quantities to come up with this extremely clever idea.

Renault 5 was the car that changed automotive design in a huge and yet quiet way.

 

 

 

Automotive Electronics are electrically generated systems used in vehicles. Automotive Electronics is something like a musical system that connects to your mobile, airbags, and an electronically controlled steering, yes you are on the right track but it has a lot more electronics than you probably realize. Automotive Electronics includes everything right from the headlight and LED brake light to the seat belt alarm inside your car. If you give it a thought, every module in your car is a high tech electronic gadget. Other electronic components in a car include Engine Ignition, Fuel Injection, Anti-lock Brakes, Steering Control, Collision Avoidance Systems, Seat Control, Air Conditioning, Navigation System, Safety Controls, Security Alarms, Transmission Controls, Music System, Bluetooth-capable, USB-capable, Wi-Fi-capable, Head and sidelights. Therefore, an electronically smart car shall always have enhanced features. 

If you own a car or might own one in near future stay updated with the latest technology and trends.

Automotive Camera

The CMOS (complementary metal-oxide-semiconductor) image sensor is designed for use in forward-sensing cameras for advanced driver assistance systems (ADAS) and camera monitoring systems. Autonomous vehicle runs purely with the help of powerful automotive cameras. These are types of automotive cameras side-view cameras, interior-view cameras, forward-view cameras, rear-view enhancement, and corner-view cameras. Demand of sensor cameras for advanced driver assistance systems (ADAS) is increased significantly, with a rising focus on safety measures on the back of road accidents. 

Based on embedded vision technology, ADAS is designed to reduce the driver's workload during the driving process itself. In this concept, vision systems surround the vehicle, looking to place the vehicle within a protective bubble against driver error, road obstacles, other vehicles, and pedestrians. Using their visual processing capabilities, these systems provide recognition and tracking information to onboard safety systems for lane departure warning, collision avoidance, driver drowsiness detection, and many more protective features. Automotive cameras have evolved considerably for integration with the safety systems of vehicles.

Advanced Motor Control

Cars already are controlled by computers. Motor management systems will get more sophisticated in the coming years. In most cases, the desire for maximum efficiency and control has motivated engineers to move beyond traditional scalar control systems to sophisticated digital vector control algorithms capable of delivering full torque with acceleration and deceleration at rates that can be precisely managed.

Digital vector control algorithms capable of delivering full torque with acceleration and deceleration at rates that can be precisely managed. Ford recently showed how a car’s computers can sense the drive and adjust the motor accordingly. If a daily commute takes the vehicle on crowded city streets, the car knows that, and it makes the motor use less gas, for instance. Beyond its primary drive motor, an advanced vehicle is filled with dedicated motor-control systems driving pumps, fans, compressors, rotators, and mechanisms of all types. The emergence of sensorless control methods has further opened the door for more cost-effective solutions, providing a maximum motor capability for engineers able to harness the power of advanced vector control methods.

Black boxes

An event data recorder (EDR) also informally known as an automotive "black box", a device installed in some automobiles to record information related to vehicle crashes or accidents. In modern diesel trucks, EDR is triggered by electronically sensed problems in the engine which are usually called faults, or a sudden change in the wheel speed. One or more of these conditions may occur because of an accident. Information from these devices can be collected after a crash to determine what the vehicles were doing before, during, and after the crash.

Gesture Control

Gesture-based control in the automotive is a trending feature getting better and better. The detection zone of gestures is focused on the steering wheel with a time-to- flight sensor, which is integrated into the instrument. It identifies the motion of the hand and turns it into actions. The driver can navigate through the menus by swiping up and down and confirm the selection with a brief tapping motion. The time-of-flight sensor comprises a 3D camera system with an open 3D image sensor which converts the infrared signal into a 3D image. Consequently, the hand positions and gestures of the driver are detected and converted into actions.

Augmented Reality App

"Augmented reality (AR) is the real-time use of information in the form of text, graphics, audio, and other virtual enhancements integrated with real-world objects.” – Gartner's IT Glossary. Augmented reality is the rendering of digital images or data onto real-world objects. Many leading automotive companies are preparing their AR app to help their customers by providing in-depth and detailed information. Using head-up displays (HUD), some companies are using augmented reality and their mobile apps to create AR owner's manuals, hence these vehicles also project data such as gas levels, lane guidance, speed, directions, and more. Instead of a driver needing to look down at the dash or to their phone to get driving data or information, the promise of augmented reality would have the info available on a heads-up display, the windshield, or projected on the road ahead in the driver’s line of sight and improve safety.

Advancement in the areas of engineering shares the combination of complexity and safety concerns of automotive electronics design. Because of the benefits offered through advanced automotive electronics, however, manufacturers are rapidly providing development solutions that hide design complexity. In turn, these ready-made solutions are delivering on the promise of enhanced safety, cost, and performance available through more advanced ADAS, motor control, engine management, in-vehicle interfaces, and extra-vehicle communications. With all these inventions we are already heading towards the automation of automobiles.

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