Buying a car in your wife's name may bring cheaper loan, lower fees and insurance discounts

Padwa, which falls after Diwali, is regarded as a special day for couples to express love and closeness. If you want to give your wife something different this time and are also planning to buy a car, registering the vehicle in her name could prove a good deal. In some cases, women applicants may get concessions on car loans, processing fees and insurance.

Some banks give women applicants a discount on the car loan interest rate. For instance, some banks may offer women borrowers a discount of about 0.25 to 0.50 per cent over the normal rate. This could reduce the interest cost somewhat on long-tenure car loans.

Some financial institutions also waive part of the processing fee for women applicants. Under some schemes, the fee can be waived by 50 to 100 per cent. However, these benefits may differ from bank to bank and from one loan scheme to another.

Insurance is mandatory when buying a car. Some insurers offer special deals for women owners or drivers. Under some policies, women drivers may be placed in a category of comparatively lower-risk customers. As a result, in some cases there is a possibility of a 5 to 10 per cent discount on the insurance premium. However, the actual premium depends on the car model, the city, the driver's experience, the type of policy and the insurer's rules.

If you are thinking of buying an electric car on Padwa, it is also necessary to look at Maharashtra's EV policy. According to the information provided, eligible electric vehicles get a concession on registration fee and road tax. This benefit is not only for women. It may apply to both eligible women and men customers.

If the intention is to buy a first car in a woman's name, it is important to check the current conditions of the RTO concerned and of the EV policy. There may also be an option of adding the wife as a co-applicant when taking a car loan.

Among cars that fit a budget, the Maruti Suzuki Celerio is a popular option for its low price and good mileage. It is available in petrol and CNG and has a 1.0-litre petrol engine. The CNG variant is claimed to have an ARAI mileage of 34.43 km. The on-road price in Mumbai may vary by variant.

The Maruti Alto K10, popular among middle-class customers, can also be an option for budget buyers. Available in petrol and CNG, it has a 1.0-litre engine. According to the information provided, the on-road price of the CNG LXi (O) variant in Mumbai is about Rs 5.59 lakh.

The Tata Aeris is also available in petrol and CNG, and the CNG variant also has an AMT gearbox option. According to the information provided, the ARAI mileage of the MT version is 26.49 km and that of the AMT version is 28.06 km. The on-road price in Mumbai may vary by variant.

While deciding whether to buy a car in the wife's name, it is not right to look only at offers. It will be more beneficial to take the final decision only after comparing the bank's interest rate, processing fee, insurance, RTO charges, EV concessions and the car's on-road price.