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ABOUT HIRE- PURCHASING
(Hire purchase is termed an installment plan. It was developed in the United
Kingdom, and now found in India, Australia, New Zealand, and other states. In some
cases where a buyer cannot afford to pay the asked price for an item of property as
on lump sum but afford to pay a percentage as deposit, a hire-purchase contract all
who buyer to hire the goods for a monthly rent. When a son equals to the original full
price plus interest has been paid in this qual installment, the buyer may then exercise
an option to buy the goods at a predetermined prices (usually nominal sum) or return
the goods to the owner.
Hire purchase differs from a mortgage and similar of lien-secured Credit in
that the called buyer who as the use of the goods is not the legal owner during the
term of the hire-purchase contract. If the buyer defaults paying installment. The owner
may reposes the goods, vendor to the protection not available with unsecured
consumer credit systems. HP is frequently advantageous the consumer because
spread the cost of expensive items over an extended time period. Business to the
consumer may find their taxable income. The need for HP is reduced when consumershave other to forms of credit readily.)
Definition:
A hire purchase agreement is defined kind of transaction in which the goods
are let on hire with an option to the hirer to purchase them with the following
stipulations;
a. Payment to be made in installments over a specified period.
b. The possession is delivered to he hirer at the time of entering in the contract.
c. The property in the goods passes to the hirer on payment of the last
installment.
d. Each installment is treated as hire charges so that if default is made In
payment of any installment, the seller become entitled to trade away thegoods, and
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e. The hire/purchaser is free to return the foods without being required to pay
any further installments falling due after the return.
The modus operandi of a hire purchase transaction is structured around the
following features:
(The finance (hire-purchase) company purchases the equipment form the
equipment supplier and lets it on hire to the hirer to use it. He is required to make a
down payment of 20-25 percent of the cost and pay balance with interest in Equated
Monthly Installments (EMI) in advance or arrears spread over 36-48 months.
Alternatively, in place of the margin in the down payment plan, under a
deposit-linked plan, the hirer has to put an equal provides the entire finance on hire
purchase terms repayable with interest as EMI over 36-48 months.
The deposit together with the accumulated interest is returned to the hirer after
the payment of the last installment. The interest component of each hire-purchase
installment is computed on the basis of a flat rate of interest and the effective rate of
interest is applied to the balance of the original loan amount.)
HIRE PURCHASE ACT 1972
(Act no. 126 of 1972)
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There is no exclusive legislation dealing with hire-purchase truncation in
India. The Hire-Purchase Act was passed in 1972. An Amendment Bill was
introduced in 1989 to amend some of the provisions of the Hire-Purchase Act.
However, the Act has not been enforced so far. The provisions of the Act are
not inconsistent with the general law and can be followed as a guideline particularly
where no provisions exist in the general laws which, in the absence of any specific
law, govern the hire purchase transaction. The Act contains provisions for regulating.
1. The format contents of the hire-purchase agreement,
2. Warrants and the conditions underlying the hire-purchase agreement
3. Ceiling on hire purchase charges.
4. Rights and obligations of the hirer and the owner.
In his absence of any specific law, the hire purchase transactions are governed by
the provisions of the Indian Contract Act and the Sales of Goods Act.
OBJECTIVES OF THE STUDY:
1. To know the fruits of credit financing or Hire-purchasing.2. To know the difference payment between hire-purchase and lumsum amount.
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3. To find out hire-purchasing method is satisfying customer or not.
4. To find out hire-purchasing method is satisfying customer or not.
5. To understand and to obtain the knowledge of the practical difficulties faced
by the third party and automobiles management.
6. To know the problem faced by the third party personnel in collecting
payments by customers.
7. The study about Nonperforming assets.
8. The study is conducted to analyse and finds and finds the solutions to the
problem of hire purchasing.
Provision
A contract of hire purchase is governed by the provision of chapter Ix of the Indian
Contract Act. It usually the common day finance agreement like purchase of consumer
durable like motor Vehicles, Computer Household \ appliance like Television and
Refrigerators etc.
In the industrial sector purchase of machinery etc is also financed by this method of
Hire purchase.
Be it in acted Parliament in the Twenty-Third year of the Republic of Indian as fallows
Priliminary
Short title, extent and Commencement:-
1. This act may be called the hire purchase Act,1972
2. It extends to the whole of Indian except of Jammu & Kashmir
Definitions: In This Act Context Other Wise Requires
Contract guarantee:
In relation to any hire purchase agreement, mean a contract where by a
person (in this Act referred to as the surety) guarantee performance of all or any of
the hires obligations under the hire purchase agreement.
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Hire: Means the sum payable periodically by hirer under a hire purchase agreement.
Form and contents of hire purchases Agreement
1. Hire purchase agreements to be writing and signed by parties there to.
2. Contents of hire purchase agreements.
3. Two or more agreements when treated as a signed Hire Purchase
Agreement.
Rights and Obligations of the Hirer:
1. Rights or hirer to purchased at any time with rebate.
2. Rights of hirer to terminate agreement at any time.
3. Right of hirer to appropriate payment in respect of two agreement.
4. Assignment and transaction of hirers or interest under hier purchase
agreement.
5. Obligation of hirer to comply with agreement.
6. Obligation of hirer in respect of care to be taken of goods.
7. Obligation of hirer to give information as to where about of goods.
Rights and Obligations of the Owner:
Rights of owner on termination; The owner has that has rights on termination
of an agreement. To Retain Hire: The owner has right to retain the hire that has
already been paid and a recover the arrears due to the date of termination this is how
ever, subjects to the hirers rights to refund in case of seizure of goods.
To Forfeit Initial Deposit: The owner has the right to forfeit the initial deposit
if the agreement so permits.
OBLIGATION OF OWNER:
The following obligation:
1. To supply, free of cost, a true copy of the agreement, signed by him
immediately after execution of the agreement.
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2. To supply to demand, a copy of the agreement to the study,
3. To supply on demand by the hirer, the following information, viz.
Position of Official Receiver on insolvency of Hirer:
On insolvency of hirer his official or liquidator has the same rights in respect
of goods, which the hirer had
Miscellaneous:
1. Discharge of price wise than by payment of many.
2. Insolvency of hirer, etc,
3. Successive hire purchase agreements between same parties.
4. Evidence of adverse detention in suit or ap cation to recover possession of
goods.
5. Hirers refusal to surrender goods not be conversion in certain cases.
6. Power to exempt from provision of section 6 , 7, 10 , 12 and 17 in certain
cases.
7. Acts not apply to existing agreements.
SCOPE OF THE STUDY
The scope of the study is to identify the credit financing usage in the market
With regard to Fortune Ford Motors. The study was conducted for a period of 45
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days only. Primary data was collected from customer. Secondary data was collected
from company manuals, magazines and website and so on.
It is aimed at enlightening the company about different steps to be taken up to
increase the share of Fortune Ford Motors with regards other competitor
and also to make the company to provide better customer services.
METHODOLOGY OF THE STUDY
Sample size
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For analyzing of that project, only few car models with their Models. This
project sample size is limited.
Source of data
The sources of the data are through the price reports given by Fortune ford
motors. Through conducting the interview to the various employees in ford office.
Sampling Technique
Using the convenient sampling method collected the data necessary
conduction the analyses. In this method the sample were selected purposively to suit
the convenience in the matter of location and the topic for the study.
Sample instrument technique
The primary data needed for the analysis was collected Through interview
schedules. The instruments used for the analysis Purposes of the data was tables and
the excel sheets.
Research Type
It is an analytical research, already available facts and Information is used to
analysis problem in other words, the main data used in the secondary.
LIMITATIONS
1. Time was major limiting factor to the study.
2. This report is based on the documentations given by the company.
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3. The study was limited only to few cars.
4. Cost was another factor to the study.
5. The study was restricted to Hyderabad and secundrabad only.
6. The study was limited for a period of 45 days only.
7. Short time period was inadequate for conducting detailed study among the customer.
Meaning of Finance:
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Finance may be defined an the provision of money at the time When it is
required finance refers to managing the flows of money through an Organization. It
concerns with the application of skill in the manipulation, use And control of money.
Short title, extent and commencement
1. This Act may be called the Hire-purchase Act, 1972.
2. It extends to the whole of India except the state of Jammu and Kashmir
3. It shall come into force on such date as the central Government may, by
Notification in the official Gazette, appoint.
Definitions
In this act, unless the context otherwise requires
(a) customer of guarantee in relation to any hire-purchase agreement, means a
contract whereby a person (In this Act referred to as the surety)
guarantees the performance of all or any the hirers obligations under the hire
Purchase agreement.(b) Hire means the sum payable periodically the hirer under a hire- purchase
agreement.
(c) Hire-purchase agreement means an agreement under which goods are let on
hire and under which the hirer has an option to purchase them. Accordance with
the terms of the agreement and includes an agreement under which.
i. Possession of goods is delivered by the owner thereof to a person on condition
That such persons pays the agreed amount in periodical installments, and
ii. The property in the goods is to pass to such person on the payment of the last
Of such installments, and
iii. Such person has a right to terminate the agreement at any time before the
Property so passes.
iv. Hire purchase price means the total sum payable by the hirer under to a hire
purchase agreement in order to complete the purchase of the acquisition of
Property in, the good to which the agreement relates and includes any sum so
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payable by the hirer under hire-purchase agreement by way of a deposit other
initial payment credit or to be credited to him under such agreement By way of
a deposit other initial payment, or credited or the be credited to him Under
such agreement on account of any such deposit or payment ,to whether That
sum is to be a or has been paid to the owner or to any person or is too be or
has been discharged by payment or money by transfer or delivery of good or
by the other means but does not include any sum of payable compensation or
damages for any breach of the agreement.
v. Hirer means the person who obtains or has obtained possession of goods
From a owner under a hire-purchase agreement, and includes a person Whom
the hirer rights liabilities under the agreements have passed by assignment or
by operation of law.
vi. Owner means the person who lets or has let, delivers has delivered
Possession of goods, to a hirer under a hire-purchase agreement and includes
a person to whom the owners to property in the goods or any the Owners or
liabilities under the agreement has passed by assignment by operation of law.
vii. Each of the words and expression used and not defined in this Act but Defined
in the India Contract Act, 1872 (9 of 1872) or the sale of goods Act, 1930(3
of 1930) shall have their to meaning assigned to it in that Act.
Hire-purchase agreement to be in writing and signed by Parties
thereto:
1. Every hire-purchase agreement shall be
2. In writing and
3. Signed by all the parties thereto
4. A hire-purchase agreement shall be void if in respect thereof any of the
requirements specified in sun-section ( I ) has not been complied with.
5. Where there is a contract of guarantee, the hire-purchase agreement shall By
the surety also and if the hire-purchase agreement is not so signed, the Hire
purchase agreement shall be avoid able the option of the owner.
Contents of Hire Purchase Agreement
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1. Every hire-purchase agreement shall state
a) The hire purchase prices of the goods to which the agreement relates,
b) Purchased by the hirer for cash, the cash price of the goods, that is to say, the
price at which goods may be
c) The date on which the agreement shall be deemed to have commenced.
d) The number of installment by which the hire-purchase price is to be Paid, the
amount of each of those installments and the date, or the Mode of determining
the date, up on
e) The goods to which the agreement relates, in a manner sufficient to identify
them.
(1) where any part of the hire-purchase price is, or is to be paid otherwise than
cheque the hire-purchase agreement shall contain a description of part of the
hire-purchase price.
(2) Where any of the requirements specified in sun-section (1) or sun-section
92) as not been complied with, if it is satisfied that the failure to comply
With any such as bee requirement has prejudiced the hirer, rescind the
agreement On such term as it think just, or pass such other order as it thinks
fit in the circumstances of the case.
Two or More Agreements When Treated as a Single Hire- Purchase
Agreement
When by virtune of two or more agreements on writing, none of which by
itself constitutes a hire-purchase agreement. There is a bailment of Goods and the
bailee as an option to purchase the goods and the require of section 3 and sec 4 are
satisfied in relation to such agreement the Agreements, the shall be treated for the
purpose of this Act as a single Hire purchase agreement made at the time when the
agreements were a made.
Warrenties and conditions to be implied in hire-Purchase
agreements
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1. Notwithstanding anything contained in any contract, in every purchase
Agreement shall be an implied warranty.
a) That the goods shall have and enjoy quiet possession of the goods,
b) That the goods shall be free from any charge or encumbrance in Favour of
any agreement there shall be
2. Notwithstanding anything contained in any contract in every hire - purchase
Agree
there shall be-
a) An implied condition on the part of the owner that he has as right to Sell the
goods at time when the property by virtue of this clause
b) An implied condition that the goods shall be of merchantable quality, But
not such condition shall be implied by virtue of this clause
i. As regards defects of which the owner could not reasonably have been
aware at the time when agreement was made, or
ii. As regards defects specified in the agreement (whether referred To in
the its to agreements as defects or by any other description to the Like
effect),
iii. Where the hirer has examined the goods, or a sample thereof, as. As
defects which the examination ought to have revealed,
iv. If the goods are second hand goods and the agreements contains A
statement to the affect.
3. Where the hirer, whether expressly or by implication-
a. Has maze known to the owner the particular purpose for which the Goods
are required, or In the course of any antecedent negotiation, has made that purpose
Known to any other the person by whom those negotiations were connoted the
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there shall be implied condition that the goods shall be reasonably fit for such
purpose.
4. Where the goods are let under a hire-purchase agreement by reference A
sample there shall be-
a.An implied condition on the part of the owner that the bulk will Correspond to
with the sample in quality,
b. An implied condition on the part of the owner that the hirer will be
a Have its reasonable oppurnity of comparing the bulk with the sample,
5. Where the goods are a let under a hire-purchase agreement by descriptionThere
shall be an implied condition that the goods will correspond with the description
and if the goods are let under the agreement by reference to a sample as well as by
description and also effect made clear to him.
6. Nothing in this section shall prejudice the operation of any other enactment or
rules of law whereby any condition or warranty is to be implied in any Hire
purchase agreement.
Right to Hirer to Appropriate Payments in Respect of Two or More
Agreements
A hirer who is liable to make payments in respect of two or more Hire-
purchase agreements to the same owners hall notwithstanding any agreement to the
country be of entitled, on making any payment in respect the agreement
appropriate the sum so paid him in or towards the satisfaction of the sum due
under any two or more agreements in such proportions as hi thinks fit, and, if he
fails to make any such appropriated aforesaid, the sum so paid shall, by virtue this
section stand apropos Toward the satisfaction of the sums due under the respective
hire-purchas agreements ithe order in which the agreement were entered into.
Passing of property
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Subject the provision of this Act, property in the goods Which a hire-
purchase agreement relates shall pass to the hirer only on the Completion or the
purchase in the manner.
9. Right of hirer to purchase at any time with rebate:
(1) The hire may at any time during the continuance of the hire-purchase
Agreement and after giving the owner not less than fourteen days noticing writing
of his intention so to do, complete the purchase of the goods By paying or tendering
to the owner of their-
(2) purchase price or the Balance thereof as reduce by the rebate calculated in
the manner provide In sub-section.
(3) The rebate for the purpose of sub-section (1) shall by equal to two-third of
an amount which bears to the hire-purchase charges the same propor-Tion as the
balance of their hire-purchase price not yet due bears to the Hire-purchase price
Obligation of the hirer to give information as about of goods
(1) Where by virtue of a hire-purchase agreement a hirer is under a duty to
keep in this possession or control the goods to which the agreement relates, the
hirer shall, be on receipt of a request I writing from the owner, Inform where the
goods are at the time of a request in writing from the Owner, inform where the
goods are at the time when the information is Given or, if it sent by post, at the time
of posting if the hire fails without reasonable cause to give said information with in
fourteen days of the receipt of the notice he shall be punishable with fine which may
Extent to their two hundred to two hundred rupees.
Right to Hirer to terminate agreement at anytime
The hirer may, at any time before final payment under the hire Purchase
agreement fails due, after giving the owner not less than 14 Days, notice in writing
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of his to their intentions so to do and re-delivering so To do and re-delivering or
tending the goods to the owner, terminate The hire-purchase agreement by payment
or tenders to their owner of Amounts which have accrued due towards the hire
purchase price and not Not been paid by him including the sum, if any, which hi is
liable to Pay under sun-section (2).
Where the hirer terminates the agreement under agreement. Under sun-section
(1),and the agreement provides for the payment For the payment of such as
termination, the liability of the hirer to pay.
That Sum Shall be Subject to the Following Conditions, Namely
Where the sum total of the amounts paid and the amounts due in respect of the
hire purchase price immediately before the term exceeds one-half, or the sum named
in the agreement whichever, is less.
Nothing in sub-section (2) shall receives the hirer from any liabity for any
hire which might have accrued due before the termination.
Any provision in any agreement, where by the right conferred on a hirer by
this section to terminate the hire-purchase agreement by him under this section shall
be void.
Nothing in the section shall prejudice any right of a hirer of a terminate a hire
agreement otherwise than by virtue of the section.
Obligation of hirer in respect of care to the take of goods
A Hirer in the Absence of a Contract to the Contrary
Shall be bound to take as much care of the goods to which the hire purchase
agreement relates as a man of ordinary prudence would circumstances, take of his
own goods, of the same bulk, quality and value.
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Shall not be responsible for the loss, destruction or deterioration of the good if
he has taken the amount of care there of described in clause (2)The shall be liable to
make compensation to the owner for any damage caused by ailure to take care of
the goods in accordance with the provisions of Subsection (1)
Rights of owner of Termination:
When a hire-purchase agreement is termined under this act, then the owner
shall be entitles to. To retain the hire which has already been paid and to recover
the arrears of hire due. Provided that when such goods are seized by the owner the
retention of hire and recovery of the arrears of the hire due shall be subject to the
provisions of section 17. The Subject to the condo specified in clauses (a) and (b) of
sub- section (2) of setion 10 forfeit the initial deposit, if so provided in the
agreements subject to the provision 17 and 20 and subject to any contract the
country, to enter the premises of the hirer and seize the goods.
Rights of hirer in case of seizure of goods by owner
Where the owner seizes under clause (c) of section 19 the goods let under a
hire-purchase agreements the hirer may recover from the owner the amount, if any by
an which the hirer purchase price falls short of the aggregate of the following the
amount of namely: - the amounts paid in respect of the hire-purchase price up to the
date of seizure. The value of the date seizure. For purpose of the best price that can
be reasonably there contained for the goods by the owner on that date less the
aggregate of the following toamounts namely reasonably expended by the owner on
the storage, repairs the goods, an amount reasonably expanded by the owner on the
storage or maintenance of the goods.
The reasonably expenses of selling or otherwise disposing of the goods,the
amounts spent by the owner for payment of arrears of taxes and other which are
payable in relation to the goods under any law for the time force and which the hirer
was liable to pay.
If the owner fails to pay the amount due from him under the provision of
section or any portion of such amount, to the hirer within a period of third days from
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date of notice for the payment of the said amounts is served on him by the hirer the
owner shall be liable pay interest on such amount at the rate of twelve percent, per
annum from the date of expiry of the said period of thirty days.
Where the owner has sold the goods seized by him the onus of providing that
the price obtaining by him for the goods was the best price that could be reasonably
obtained by him on the date of seizure lie shall lie upon him.
Restriction on owners right to recover possession of goods otherwise
than through court:
Where goods have been let under a hire-purchase agreement and the statutoryproportion of the hire - purchase price paid, whether in purchase judgment of court
or otherwise tendered by on behalf of the hirer or any surety the owner shall not
enforce any right to recover possession of the goods from the hirer otherwise than
accordance with sub-section(3) Explanation :- In this section, statutory proportion
mean one-half, where the hire-purchase price is less than fifteen thousand rupee and,
three-fourths, the where the hire-purchase price is less than fifteen thousand rupees.
Provided that in the case of motor vehicles as defend in motors vehicles
Act, 1939(4 of 1930), statutory proportion shall mean.-one - half where the hire-
purchase price is less than five thousand rupees. Three-fourths,where the hire -
purchase price is not less than five thousand rupees but less than fifteen thousand
rupees.
Three-fourths or such higher proportion not exceeding nine-lengths as the
Central Government may , by notification in the official Gazette, specify, where hire
purchase price is not less than fifteen thousand rupees.
If the owner recovers possession of goods in contravention of the provision sub
section (1) ,the hire purchase agreement if not previously terminated, shallterminate
and the hirer shall be released from all liability under the agreement and shall be
entitle to the recover from the owner all sums paid by hirer under the agreement or
under any security given by him in respect thereof, and
The surety shall be entitled to recover from the owner all sums paid by him
under any security given by him in respect thereof.
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Where, by virtune of the provision of sun-section (1), the owner is precluded
from enforcing a right to recover possession of goods he may application for
recovery of possession of the goods to any court having jurisdiction to entertain a suit
for their same relief.
The provision of this section shall not apply in case in which the hirer has
Terminated the agreement by virtue of any vested in him.
Obligation of hirer in respect of use of goods
If the hirer makes any use of the goods to which the hire-purchas agreements
relates which is not according to the condition of the agreement , the hirer shall be
liable to make compensation to the owner for any damage arising to the goods from
or during such use.
Act not to apply to existing agreements
The act shall not apply in relation to any hire-purchase to any hire purchase
agreement made before the commencement of this act.
Services of Notice
Any notice required to be served on or given to an owner or a hirer under this
Act may be so served or given - by delivering it to him personally or by sending it by
him to his last known place of residence or business.
Insolvency of Hirer, etc
Where during the continuance of the hire - purchase agreement , the hirer is
adjudged insolvent under any law with respect to insolvency for the time being in
force, the official receiver or where the hirer is a company , then in the event of the
company being wound up, the liquidator, shall have in respect of the goods which
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are interest the possession of the hirer under the agreement the same rights an
obligation as the hirer had in relation thereof.
The official receiver or the liquidator, as the case may with the permission of
the insolvency court which the winding up proceeding are pending, assign the rights
of the hirer under the agreement, to any other person, and the assignee shall have the
rights and be subject to all the obligation of the hirer under the agreement.
Explanation- In this section, Official Receiver means an Official Receiver
appointed under the provincial insolvency act, 1920 (5 of 1920) and include any
person holding a similar office under any other law with respect to insolvency for the
time being in force.
SALES OF GOODS ACT 1930
In a contract of hire purchase, the element of sale is inherent as the hiere
always has the option to the purchase the movable assets by make regular payment
of hire charges and the property in this passes to him on payment of the last
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installment . It is in context the provision of the sale applies to hire purchase
contracts.
Contract of Sale of Goods
A contract of sale of goods is a contract whereby the seller transfer agrees to
transfer the property in goods to the buyer for price. It on include both actual sale
and an agreement to sell which vastly of differ from each other.
A contract in which the property in the goods is transformed from the seller to
the buyer , the contract is called a sale , but whether transfer of property in the
goods, is to take place at a future time, or subject to some conditions to be fulfilled
late r, it is called on the agreement to sell.
An agreement to sell becomes a sale when the time elapses or the conditions
are fulfilled subject to which the properties in the goods are on be transferred.
ESSENTIAL INGREDIENTS OF A SALE
A Contract of sale is constituted of following elements
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i. Two parties, namely the buyer and seller, both competent to content
effectuate the sale.
ii. Goods that is the subject-matter to be transferred from the seller to the
buyer.
iii. Money consideration for the goods, known as price.
iv. Transfer of ownership of the general property in the goods from the Seller to
the buyer.
v. Essential of a valid contract under the India Contract Act.
The hire purchase transaction/agreement has two aspects
1. An aspect of bailment of goods which is covered by the Contract Act.
2. An element of sale when the option to purchase of purchase is excised by
hirer intending purchaser which is covered by the Sale of Goods Act.
ABOUT FORD COMPANY
Ford Motors Company is the worlds second largest automaker with
appositely 4,00,000 employees, and operating in more than 250 markets on six
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countries. Its automotive brands include Asian Marine, Ford, Jaguar, and Land
Rover, Lincoln , Mazda, Mercury and Volvo. Its automotive- related services include
Ford Credit, Hertz and Quality Care.
The companys world headquarters is in Dearborn, Ford Motor Company their
officially celebrated its 101th anniversary on June 16, 2003 for additional in
Information visits the site below.
Overview:
Ford motors company a global automotive industry leader in Dearborn, Mich.,
manufactures and distributors automobiles in 250 markets across six continents, with
about 4,00,000 employees and 108 plans world wide, the companys core and
affiliated automotive brands include Ford Jaguar, Land, Rover, Lincoln, Mazda,
Mercury and Volvo. Its automate related services include Ford Motor Credit
Company.
The very first member of the Ford Motor Company family of brands, Ford off
distinctively designed and affordable vehicles for worlds varying lifestyles.From the
Model T - the car that first brought driving to the masses, to more recent favorites like
the Mustang in the US, the Mondeo in Europe, the Eco Sport in SouthAmerica and
the Territory in Asia,. Ford vehicles have been among the worlds most popular
cars, trucks and SUVs.
Brief History:
Ford Motor Company began with just Ford vechles in wagon Shop in
Michigan. To fully understand the essence of this founding member of the family
brands just look at the early history of Ford Motor Company from earliest automotive
experiments the models A.T, and beyond.
While value for money has always been top priority in develop Ford vehicles
that concern has never compromised quality of the pursuit of quality solutions. Ford
has always strived to meet consumers real-life are Requirements-from smaller cars
for European, to their smaller cars for the ever-changing environment.
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One of the most essential ingredients for a successful business is
communication we strive to keep the public well informed about us out products
financial their progress and public policy.
Products and Customers
We will offer excellent products and services. Ford Motors Company flexible
to their manufacturing system has the ability up to eight differ models off two
independent platforms. The flexible system standardizes the assembly process,
improves productivity, eliminate waste and boost quality. Developing and introducing
products with better environs performance.
Fast Facts:
1. Focusing on customer satisfaction and loyalty and keeping our promises.
2. Using our understanding of the market to anticipate customer needs
3. Delivering innovative products and services that offer high value in terms of
function, price, quality, safety and environmental performance.
Progress since Our Last Report
Around the world, our markets are changing. High fuel prices are accelerating
interesting vehicles with good fuel economy, Markets are expand in rapidly growing
economies and remain highly competitive everywhere we operate,
To meet and anticipates our customers needs, we are following on:
History
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1. Introducing new products, globally, we introducing in the 45 all-new, or sub
statically new, products in 2006 more than in year in the Companys.
2. Raising the bar on quality. In J.D. Powers Initial Quality Study, our 2004 U.S
Vechles and continued a positive trend by improving more than 6 percent
Compared to 2005.
3. Implementing shared architectures and technologies and flexible manufacture
by the end of the decade, 75% of North American and all of our European
plants will be flexible and able to produce multiple vechles models.
4. European the range of products available in high markets.
Our Company faces urgent short term challenges that we have described in our
Annual Report and will discuss in this report . Were addressing these challenges by
acceleration our business plans to strengthen our balance sheet,optimize to our global
footprint and deliver and more great product faster.That includes eliminating excess
capacity, reducing the size or our work force while improving its capability ,
increasing our investment in fast-growing markets and their speeding up our product
development process.
Our success as a business in the near term is a prerequisite to any strategy of
the future growth. However, our preparing for the future with our delay while nobody
can confidently predict what the worlds will look like a few decades from now , it is
clear that strong profitable companies going forward will be the ones that strive for
sustainable use of environs to and social capital in a rapidly growing global economy.
The Business Case is Clear
Reducing use of non-renewable resources will help us cut material and
operating cost avoid the growing volatility of commodity prices.
Societys growing concern for environment issues is crating growth markets
for innovative green products and technologies that generate new sources of
revenue increasingly stringent government regulations around the world will favour
companies that are best positioned to address underlying environmental and social
priorities.
Global climate changes are one of the most urgent examples. Act Ford, we
have a long acknowledged the importance and social systems, customers are investors
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and policy makers are increasingly focused on the need him less fossil and emit fewer
greenhouse gases.The issue to will become even more challenging as markets like
India and china expand their own needs for energy.
Climate changes is also an example of a complex 21st-century challenge that
requires the systemic social, political ,technological and the business solution.
Stabilizing the concentration of greenhouse gases in,
Our atmosphere while maintaining economic growth demands corporate and
political leadership and dialogue across traditional boundaries.It requires global
coordination technologies, government policies, markets in these infrastructures.
Within our Company, climate changes, and the underlying issue of fuel
economy poses a particular challenge. In North America, the fuel economy of
Vehicles is competitive and in some cases even best-in-class with in their the
respective segments however, the market-leading.
SUVs results in a low average fuel economy from our fleet as a whole.
Across the industry , fuel efficiency improvements compete for investment with other
product features and innovations, overall affordability and pressing obligations, like
safety , health care and pension costs.
Even as we grapple with this issue, we continue to set the pace in our industry
on a important environmental and social priorities, such as reducing water
consumption, conserving energy, recycling and reusing non -renewable material
eliminating toxic materials, establishing codes of working conditions and safety in
our plants and supply chain, and addressing public an health issues from HIV/AIDS to
cancer to juvenile diabetes . You will find all these issues and more addressed in this
report.
Looming on the horizon are additional challenges as well as opportunities the
sheer scale of our industry enormous in the United States, the auto dusty is
responsible for 6.6million jobs which is about 5% of all private sector jobs and nearly
4% of Gross Domestic product. No other single industry is more linked U.S
manufactures strength or generates more retail business and employment. The U.S
auto industry purchases 60% of all the rubber and about 30% of all the aluminums,
iron and stainless steel used in the United States.
The 61 million new cars and trucks sold glo0bally last year provide personal
mobility and economic opportunity an increasingly interdependent population Some
people believe the its impossible to provide personal transportation for business
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address environmental and social a needs without breaching its fiduciary
responsibility to shareholders.
At Ford, we are determined that these are priorities do not need to conflict
with one another , and that the path to profitable growth in our industry may
increasingly lie in finding ways to generates new revenue by reconciling these issues,
not just trading them off against one another.We describe such thinking in this report
our first organized under sustainability (rather than corporate citizenship) title.
Ford joined seven other automotive companies three energy companies and
an to automotive supplier in a study sponsored by their World Business Council
for Sustainable Development (WBCSD)entitled Mobility 2030:Meeting the
challenge to Sustainbility.Which was published last year? In additions to climate
change, air pollution and road safety, the report called out the growing importance of
noise of congestion and the mobility dividebetween the rich and economically and
socially disadvantaged ad critical issues on the sustainable mobility.\
These issues become even more acute as hundred of million of people around
the world joins the global economic, marketplace and claim access the lifestyle
including personal mobility, long enjoyed by the populations of developed markets.
We know the smart competitors are racing to be first with solutions for
21stcentury and we want to lead that race. Our work is, therefore, urgent, and it is
proceeding along three paths:
Integrated Strategy
Since we see sustainability as core to our business success, we are working
to develop metrics, targets and milestones to be explicitly integrated intoour business
plan,along side the fundamental of quality, cost and revenue, products and
relationships.Were also work on the difficult challenge of reconciling shortterm
imperatives to deliver financial returns with the investments required to deliver
financial returns with the investments requires to realize to longtime opponents.
Technological Innovation
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We have developed an organization and governance structure - the sus
Mobility Group dedicated to investing in and driving new mobility technology
including hybrid clean diesels, hydrogen internal - combination engines and fuel cells.
Were conducting this breaks through work too,on term vechles technologies such as
alternative fuel and advanced gasoline engines. We also continue to work on new
developments in the way we build our trucks , for example through flexible
manufacturing techniques.
External dialogue:
New business requires new thinking, which in turn requires new relation ship
in the communities in which we operate. The history of industry is littered with their
remains of companies that rigidly defended their world view through their policies,
stratgies, marketing a relationships,issue of broad public concern, efforts to increase
mutual understanding is usually more productivity than an adversarial defence of
special interests.Thats why engagement with Policy makers , advocacy groups ,
consumers, investors, business partners and employees is a cornerstone of our drive
realize our vision.Already in the developing our approache to human rights and
climate chage, we have seen the
Value of listening, learning and acting in concert with thoughtful
advocates.
Im proud of the step we have taken so far - most notably the introduce of their
Escape Hybrid, the worlds first hybrid SUV; the reinvention the rouge facilities as
model of. 21st century sustainable manufacturing our industry leading actions in
human rights , and the response of our employ to human needs notably in Southeast
Asia after the December 26 tsunami and in the U.S.Gulf Coast after Hurricane
Katrina.
Overview
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Our industry the business environment and social expectations continue to evil
and so does our reporting. Find out how we managing sustainability as strategic
priority with in the business.
Our Impacts
As a multinations enterprise, our activities have far-reaching impacts on their
environmental, social and economic systems, Read about our analysis and
prioritization of the issues and impacts.
The challenge for us now is to reconcile our need to respond to mainstream
investors with the long-term sustainability goals.
Fortune Ford Profile
Fortune Ford is an authorized dealer for Ford India Limited, who is one of the
leading manufactures of top quality cars, in India, with many of varieties in the
offering.
Fortune Ford is a 50:50% Joint Venture is set up between two sell know and
reputed families in Hyderabad, the Modis and the Babu Khans. Fortune ford is a
blend of the experience and youth, the expiries and good will that the
Mr.MisbahuddinBabu Khan and Mr. Pramod Modi enjoy blend very well with the
youth and energy of a youngsters Bashir,Ashish, Nirav and Siraj to make Fortune ford
a truly world class Ford Dealership.
Fortune Ford markets and services the recently launched truly European Ford
Fiesta, the ever popular Ford Ikon Flair the No non-sense car Ford Fusion on the
macho SUV the Ford Endeavour through its sales service outlets at Hyderabad . The
sales outlet is located strategically at Somajiguda next t0 Eanadu, we have two
service centers , one at chapel road, abides road and other at fathebagh, Sanathnagar .
These centrally located outlet Provide and a convenient and easy access to both the
period owners as well Prospective buyers. The worker Fortune Ford is committed to
excellent in serving all esteemed customers.
The sales Team is made up of dedicated showroom and field executives who
are there professionally trained by Ford India Limited? They are adept a guiding the
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customer through the entire sales process right from assisting in the choice of model
co lour and feature to lending a helping hand in providing attractive buyback options
and also arranging finance a competitive rates.
The Services Center is armed with the art equipment and is in line with Ford
exacting Global standards . The service team is technically qualified in trained to
analyze and provide adhering to Quality care, in order to satisfy even the most
demanding customers.
The Fortune Ford dealership maintain a high standard of excellent in sales and
services by sending its personnel for training on a regular basis Ford India Limited , to
update them with the technologies advances in the automotive sphere.
Show Room
We have 5000 sft centrally air conditions showroom located in the heart of the
city in Somajiguda, adjacent to Eenadu office and just opp. to Khairtabad RTA. This
makes a convenient for almost every one residing in and around the Hyderabad and
Secundrabad.
The facilities offered from the showroom are
1. Very easy finance facility with in- house finance team to cater to your every
car finance an requirements. All the leading finance are available like ICICI
relevant like ICICI, HDFC ,and KOTAK, SUNDARAM, SBI, etc.
2. Exchange offer for any of your used car, free spot evaluation for any Used car.
3. Ford preferred insurance for courteous transactions in the event of claims,
Special offer on insurance renewals. You also renew your insurance by just
making call to our devices market help line 9705678800.
4. Full range of Ford cars with all colors and models to choose from.
5. A good stock of Ford genuine accessories to make your Ford owner ship more
delightful an safe.
6. A well maintained fleet of test drive cars to give you feel and experience the
drive dynamic on actual driving conditions before take the purchase of
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decisions .You can call our sales help line for test drive or fill the on-line test
drives requisition form.
SERVICE CENTERS
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We believe that a customer is for life and it will be our endeavor to make you
Ford ownership experience truly cherish, able.We will make all of efforts in meet this
commit and will always welcome your suggestion and advice to achieve. Excellence
in everything we do.
We have two workshops strategically located at Sanathnagar, Abids and their
Tolichowld. Based on your convenience, you can choose any of these two of
Facilities to get your car serviced.
1. ABIDS SERVICE CENTER
#5-9-171, Chapel Road, Abids, Hyd-500 001,
Telephone 040-66848384,
Services Appointment No. 9848885881,
E-mail: service@fortuneford.com.
2. SANATHNAGAR SERVICE CENTER
#7-2-1851, Fathe Bagh, Sanathnagar, hyd-18,
Telephone: 040-23800000, 23801415,
Service Appointment No: 9848885881,
E-mail: service@fortuneford.com.
3. TOLICHOWKI OUICK REPAIR CENTER
#9-4-76/A/6, Nizam Colony, hyd 500 008,
Telephone No: 040-23565000,
Service Appointment No: 9848885881,
E-mail: service@fortuneford.com
The following are some of the facilities provided by Fortune Ford to
all our esteemed customers
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1. In case of any break down you can call our Road side assistance help line no
9848844000. Towing facility is arranged with a nomied cost.
2. Pick- up and Drop facility with prior appointment.
3. Entire range of spare parts and accessories are available to ensure minimum
down time of your car.
4. A team for the Ford trained waiting and lounge with valuable reading material
and related information to make your waiting time more memorable.
5. Body shop with computerized color mixing equipment an well trained skilled
staff to take care of your body shop repair job.
6. An air-condition waiting lounge with valuable reading material an related
information to make your waiting time more memorable
7. Insurance help desk to assist you long lasting relationship and wish you the
smoothest of the driving experience for years to
ACCESSORIES
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Your car stands our in the crowed! This is no dream.To put a unique stamp of
individual personality and style on Ford car,a snazzy range of accession are available.
So now there is unlimited leverage to spot a distinct style!Genuine accessories are
designed an marketed by Ford India, keeping in mind individualistic styles each and
every Ford access-ory is built to last and designed to stand sport for the discerning
ford owner You! Also, at fortune Ford trained electricians and mechanics are
available ensure that each and every accessory is fitted as per requirement, to get the
best out of it.
Competitive pricing
Ford accession is value for money.What you get when you opt for ford an a
accessory is economy in the long run.With Ford accessories, you can enjoy the feeling
of be in a savvy customer.
Highest Ford Standards of Quality
Ford accessories conform to exacting standards of quality. And these are the
Standards are the ones that the customers are familiar with like the ones that Ford
adheres to when the cars are made.
Customized for Ford cars
All the accessories are perfectly compatible eith the Ford cars. That means
accurate fitment, and of course, the perfect Ford styling.
Exclusive Designs
A lot of creativity and efforts is invested in designing Ford accessories. Each
an every Ford accessory can be easily differentiated because their exclusively set
them apart from other run-of-the-mill products.
CONTACT US AT
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SOMAJIGUDA
Address 6-3-569/2 Rockdale, Somajiguda ,Hyderabad-500
082.
Telephone 040-23322340, 040-23300700
E mail service@fortuneford.com
Mobile +91-9848885881
ABIDS
Address 5-9-171.Chaple Road, bids. Hyderabad -500 001
Telephone 040-55848474
Email service@fortuneford.com
Telephone+91-9848885881
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TOLICHOWKI
Address 9-4-76/A/6, Nizam Colony, Opp. Magal
Residency, Tolichowki, Hyd-80
Telephone 040-23565000
Email service@fortuneford.com
Mobile
+91-9848885882
History of Ford in India
1907 India begins selling the Model A
1926 Ford India is establish by Ford of Canada
1935 India government officials ask Hernry Ford to consider building a car
manufacturing plants in Bombay
1941 Mahatma Gandhi sends spinning wheel, the symbol of Indian economic
independence, to Henry Ford.
1955 Ford India operations cease.
1970 Ford re-enters India in a joint venture with Escorts Ltd. To produce tractors.
36
SANATHNAGAR
Address
7-2-1851. Fathe Bagh, Sananthnagara,
Hyderabad, 5000018
Telephone 040-23800000
Email service@fortuneford.com
Mobile
91+9848885882
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1991 Ford cases tractor operations. Ford establishes Climate System India a joint
venture to with Maruti and Sumitomo Corporation.
1993 Production starts at the Climate System India Bhiwandi.
1995(Feb) Ford demonstrates its commitment to their Indian market by the
completing and equity purchase of 5.8% in M&M.
1995(Sep) ford and M&M file for government approval to establish a joint venture
company to manufacture and distribute vehicles.
1996(Nov) Ford and M&M receive government approval on joint venture called
Mahindra Ford India Ltd. (MFIL).
1996(Jan)Mahindra Ford India Ltd, announces the choice of Maraimalai Nagar as the
site of the new manufacturing facility to begin with their production of the Fiesta.
1996 (Aug) They India-built Ford Escort rolls off the line the Nasik Assembly plan
1997(Sept) Ford Escorts receives more than 70,000 sales bookings.
1998 (June) MFIL launches Ford Escort Freedom to mark and their of Indians 50th
year of Independence.
1998(Sep) MFIL launches Ford Escort Anniversary to mark first anniversary of Ford
Escort in India.
1998(Oct) The ford-sponsored photo exhibition, India: A Celebration of their
Independence opens in New Delhi.
1998(Nov) Ford Escort choose best quality car in JD Powers India Initial Quality
Survey.
1998(Dec) MFIL tops JD Powers customer Satisfaction Index.
1999(Mar) Ford establishes the Henry Ford chair at the India Institute of the
technology M&M announces decision to modify its equity in MLIF.
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1999(July) Ford India lays the foundation stone for an export plant. The export plant
will be source auto components locally and assembly kits to export to over seas
markets.
2000(Nov) Ford India launches the IKON- first car built specifically for India by the a
multi-national company built at its new state-of-the-art plant in Tamil Nadu.
2000(Feb) Ford India announced that a IKON1.3 CLXi Endure-E petrol would be
available at Ford dealership across India from March 1, 2000.
2000 (Feb) On February 10, Ford India announced that Narain Karthikeyan would be
racing a for the Ford-owned Jaguar racing team in the FIA British Formula 3
championship. The company renewed its sponsorship and organizes corporate
sponsorship consortium to proved training development ,mentoring financial backing
to Narain in a bid to the become the British Formula 3 champion in 2000.
2000(Apr) Ford India launched Ford Assured on April 24,2000 a new come initiative
to buy and sell used cars; this initiative is first of its kindventure in which Ford
India along with its dealership will buy, recondition and sell in various models of used
cars.
2000(June) Certified for ISO 14001: 1996 on June 8, 2000
2000(June) On June 23, 2000, Ford India introduced the latest member of the Josh
team, the Ford IKON EXi. The model is available at Ford dealership of from July
2000.2000(Aug) On August 4, Ford India announced the Conservation & Environment
Grant and programmed in India. The grants programme is open to projects in five of
Categories: Natural Environmental, Conservation Engineering, Heritage, Vents
Education Youth projects.
2001(Sept) On September 11,Ford India launched the Ford IKON SXiThese stylish
Josh machine simultaneously in New Delhi, Mumbai and Bangalore.A model is
available at Ford dealership from mid September 2001.
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2001(Oct) Ford India has started exporting Ford IKON CKD units, registration an
initial order of 1600 units in October 2001 , Ford India is well on its way to reach the
target figure of 21,000 IKONs in the current financial year , having already as
crossed the figure of 19,000 IKONs.
2002(Feb) Ford India launched a distinctive website with exciting new design
element and features to delight motoring enthusiasts, called www.india .ford.com.
2002(Feb) Ford Assured launched in a partnership with the dealership to buy,
recondition an sell used cars of different India makes.
2002(May) Certified ISO 9001:1994 on May 02, 2002.
2002(Nov) Ford announces winner for the Ford Conservation Environment Grant
program 2002. Ford India announced the winners the Ford Conservation,
Environment Grants (C&E) Programme in an awards ceremony held at ITT,Madras,
Dr Palanichami, IAS, Secretary, Environment & Forest Department, Government of
Tamilnadu, Presided over the function and presented the grant the presented the grant
to five winners from, the adult and youth category.
2002 (Nov) Ford India launched the Ford Mondeo.
2003(Jan) Ford India show cases a wide spectrum of exciting cars the Auto Expo
2003. Ford India unveiled a wide range of exciting car from the Ford Motorcompany
stable at this Auto Expo 2003, at Pragati Maidan , New Delhi Designed by
renowned art director Sabu Cyril, the ford India Limited will be manufactured at
HMLs state of the artmacning and assembly plant at Pithampur near Indore in
Madhya Pradesh.
2003(Mar) Certified QS 9000:1998, 3rd edition on March 21,2003 Ford India as
received the QS 9000 award from TUV suddeutschland.
2003(Sep) New Ikon Varient 1.6 Exi was launched New Delhi, September 02.2003
Ford India Limited today launched the Ford Ikon 1.6 Exi, its latest variant in the
Ikon Portfolio, offering a combination of high performance and premium features
at great value. The new Ford Ikon 1.6 Exi is powered by the 1.6 liter Rocam to the a
Petrol engine delivering 91 HP @ 5500 rpm and a peak torque of 130Nm @ 2500
RPM.
2004(Jan) The New Ford Ikon NXT launched The Next Level of Josh.
2004(Feb) Ford India doubles sale with Ford Ikon NXI for the month of January
2004 with a record 1,737 units compared to 860 units during the same month last
year.
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2004(March) Adding Refinement to Josh- Ford India launches Ikon NXT Finese.
2004(June) Ford Celebrates Centennial in India. Ford Motor Company awards Work
to the Excellence Award to Cooper Tire & Rubber India.
2005(July) Ford India launches Ikon NXT SXi.Ford India Rank Highest in J. D
Power India Sales Satisfactions Study.
2005(Aug) Ford launches Ikon Endeavor debuts in India,
2006(Sep) Ford Endeavor debuts in India.
2006(Oct) Ford announces price of Endeavour at Rs.12910 Lakhs.
2007(Dec) J.D.Power ranks Ford Ikon highest in appeal.
BBC worlds wheels Awards 2009 and 2011 First ever Viewers Choice awards
announced.BBC World named the winning car and bikes of the prestigious Wheels
Awards
2009 Sponsored by world Class Engine Oil, Wheels the popular weekly in the
automobile show on BBC World. Ford Ikon 1.6 NXT SXi Best car between Rs 5 and
Rs 8 Lacs Ford Endeavor 4WD Best car SUV over Rs 10 Lacs
2011(Jan) Autocar SUV of the Over- Winner Ford Endeavour.
FORTUNE FORD PRODUCTS
Ford Fiesta
Price list of above Products: (w.E.F May 1st, 2011)
(Price in rupess)
1.4 Duratec 1.6Duratec 1.4 duratec
Petrol Exi Spl.Elitepack Zxi Sxi Abs With alloys
Ex- Show room 5.86.500 5,86,500 6,32,20 7,18,200 7,18,200
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0
Insurance 21,570 21,570 23,170 29,325 29,325
Life Tax 52,900 52,900 57,020 64,760 64,760
Registration 2500 2500 2500 2500 2500
T/R Charges 500 500 500 500 500
Exi Warranty(2yrs) 5,500 5,500 5,500 5,500 5,500
Incidental charges 5,000 5,000 5,000 5,000 5,000
Essential Pack 2,340 38,000 2,470 2,470 22,470
2. Ford fiesta
1.4 Durates
DISEL E xi Spl-Elite
pack
Sxi Abs Z xi Sxi Abs (A)
Ex- show
Room 6,96,500 6,95,500 8,02,200 7,42,200 8,02,200
Insurance 25,450 25,450 29,155 27,050 29,155
Life Tax 62,800 62,800 73,320 66,920 29,155
Registration
.
2,500 2,500 2,500 2,500 2,500
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T/R Charges
500 500 500 500 500
Exi
Warranty(2yrs 5,500 5,500 5,500 5,500 5,500
Incidental
charges 5000 5,000 5,000 5,000 5,000
Essential Pack
2,340 38,000 2,470 2,470 22,470
On Road price 8,00,590 8,36,250 9,19,645 8,52,140 9,39,645
Ford Ikon:
Price list of above Products:(W.E.F May,1st,2011)
(pric
e in rupees)
1.3 Flair
PETROL Flair Blast Kit 1(Rs.)** Blast Kit 2(Rs.)**
Ex- showroom 4,75,900 4,75,900 4,75,900
Insurance 17,720 17,720 17,720
Life Tax 42,950 42,950 42,950
Registration 2,500 2,500 2,500
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T/R Charges 500 500 500
Exi Warranty(1yrs
5,300 5,300 5,300
Incidental charges
5,000 5,000 5,000
Blast Kit 3,120 35,000 24,000
Essential Pack 5,52,990 5,84,870 5,73,870
Ford Fusion:( W.E.F. 19th July 2011)
FORD FUSION
Petrol TDCI
Ex- showroom 5,70,000 6,59,000
Insurance 23,880 24,135
Life Tax 51,450 59,430
Registration 500 500
T/R Charges 2,500 2,500
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Exi Warranty
5,900 5,990
Incidental charges 5,000 5,000
Essential Pack 3,200 3,200
Total
6,62,490 7,59,755
Ford Endeavour :( W.E.F.1st June 2011)
DIESEL
Model 4x2 4x2(ltd edition) 4x4
Ex-show room 14,72,000 15,52,000 15,62,000
Insurance 57,000 59,940 60,305
Life tax 1,32,600 1,39,800 1,40,700
T/R charges 500 500 500
Registration 2,500 2,500 2,500
Ex-Warranty 9,255 9,255 9,255
Incedental
charges
5,000 5,000 5,000
Total 16,78,825 17,68,965 17,80,230
Terms & Conditions
1. Please collect the original receipt after paying the advance or full amount.
2. Price are subject to charge with notice.Price prevailing at the time of the
physical delivery wills the applicable.
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3. Vechile will be delivered only after all registration formalities are complete a
per the mot vehicle act.
4. 100% Payment to be made before to delivery by D.D / Cheque / Cash / Pay
order favour of m/s.Fortune Automobiles India pvt.Ltd.
5. Vehicles will be registered and delivered only after receipt of full payment.
6. Booking amount shall not carry any interest.
7. Please produce your PAN copy against delivery as for Govt. rules.
Ford Fiesta
FORD FIESTA 5,87,500.00
Ex-Showroom price 4,99,375.00
Finance amount 88,125.00
MARGIN AMOUNT 21,630.00
INSURANCE 70,620.00
LIFE TAX @12% 500.00
T/R CHARGES* 2,500.00
REGISTRATION* 5,500.00
EXT WARRANTY (2nd yr ) 5,000.00
INCIDENTAL CHARGES 2,340.00
ESSENTIAL
O.S STAMP DUTY (on finance)* 24,968.75
Processing fee* 3,500.00
TOTAL (A) 224,683.75
INSTALLMENT AMOUNT (12 moths) 44,224.65
(13.5% int); 8856/-per lakhs (B)
INSTALLMENT AMOUNT (36 moths)
(13.5% int); 3356/-per lakh ( C) 23,595.00
INSTALLMENT AMOUNT (13.5% INT) 16,759.03
3356/- per lakh (D)
EQYATED AMOUNT INSTALLMENT
DOWN PAYMENT for 12 months =(A)+(B) 268,908.40
(1st installment)
DOWN PAYMENT for 24 months = (A)+(C) 248,279.22(1st installment)
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DOWN PAYMENT for 36 months =(A)+ (D) 241,442.78
(1st installment)
FINANCE AMOUNT- PAYMENT MADE
BY CUSTOMER
AFTER PERIOD12 MONTHS 31,320.80
24 MONTHS 66,916.25
36 MONTHS 103,949.90
Ford Fiesta
FOR 12 MONTHS
TOTAL 6,87,110 Simple Compound
interest 9% interest 9%
MONTH
PAMENT
REMAINING
1 2,68,908.40 4,18,201.60 3,136.51 3,316.51
2 44,224.65 3,73,976.95 2,804.83 3,77,113.46 2,828.35
3 44,224.65 3,29,752.30 2,473.14 3,32,557.13 2,494.18
4 44,224.65 2,85,527.65 2,141,46 2,88,000.79 2,160.01
5 44,224.65 2,41,303.00 1,809.77 2,43,444.46 1,825.83
6 44,224.65 1,97,078.35 1,478.09 1,98,888.12 1,491.66
7 44,224.65 1,52,853.70 1,146.40 1.54,331.79 1,157.49
8 44,224.65 1,08,629.05 814.72 1,09,775.4
5
823.32
9 44,224.65 64,404.40 483.03 65,219.12 489.14
10 44,224.65 20,179.75 151.35 20.662.78 154.97
20179.75+
24,044.9
44,224.65
TATOL TATOLint 16,439.30 16,893.94
Normal loss is 31,320.80
Actual loss is 16439 in
Simple interest
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Actual loss is 16893.94 if it is
compound interest
INTERPREATION OF FORD FIESTA
1. The Ex-show room price of the car is (5, 87,500.00)
2. In the price finance available only 85%,(499,375.00)
3. Show room price deducted to the finance amount its means margin money.
4. The stamp required on the finance amount at 5%
5. Various expenses added to the car (INSURANCE, LIFE TAX @ 12%, T/R
CHARGES, T/R CHARGES, EXT. WARRANTY (2nd yr) ESSENTIAL PACK,
PROCESSING FEE)
6. Ford company mostly preferable at 13.5%
7. Interest is calculated at only finance amount (499,375.00)
8. Interest is calculated 1, 00,000 only (8856)
9. After multiplied at finance amount
10. Equally monthly installment required 12,24and 36only
11. Time period is less install amount is more
12. Compound interest is calculated on the remaining amount of the instalment
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Ford Ikon
Ex-Show room price 482500
Finance amount 410125
MARGIN AMOUNT 72375
INSURANCE * 17950
LIFE TAX@ 12% 58020
T/R CHARGES* 500
EXT.WARRANTY (2nd yr) 2500
INCIDENTAL CHARGES 5300
BLAST KIT 5000
0.5 STAMP DUTY (on finance) * 20506.25
PROCESSING FEE 3500
TOTAL (A) 188771.25
INSTALLMENT AMOUNT (12 months)(13.5% int); 8,856 /-per lakh (B) 36320.67
INSTALLMENT AMOUNT (24 mounths)
(13.5% int); 4,725/- per lakh (C) 19378.40652
INSTALLMENT AMOUNT (36 mounths)
(13.5% int); 3356/- per lakh (D) 13763.795
EQUATED MONTHLY INSTALLMENT
DOWN PAYMENT FOR 12 months =
(A) + (B) { 1st installment }
DOWN PAYMENT FOR 24 months =(A) + (C) { 1st installment } 208149.6563
DOWN PAYMENT FOR 36 months =
(A) + (D) { 1st installment } 208149.6563
FINANCE AMOUNT PAYMENT MADE
BY
CUSTOMER AFTER PERIOD 202535.045
12 MONTHS -25723.04
24 MONTHS -54956.75
36 MONTHS -85371.62
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Ford Ikon
TOTAL 574890 SIMPLE int. compound int
MONT
H
PAYMENT REMANIN
G
INTEREST @ 9% 9%
1 208149.656
3
366740.3437 2750.55257
8
2750.5525
7
2 36320.67 330419.6737 2478.14755
3
333170.22 2498.7766
3 36320.67 294099.0037 2205.7452
8
296571.151 2224.328
4 36320.67 257778.3337 1933.33750
3
259984.076 1949.8805
5 36320.67 221457.6637 1660.93478 223391.001
2
1675.4325
6 36320.67 185136.9937 1388.52745 186797.928
2
1400.9844
7 36320.67 148816.3327 1116.12242 150204.851
2
1126.5363
8 36320.67 112495.6597 843.717402 113611.776
1
852.0883
9 36320.67 76714.9837 571.312377
8
77018.7011 577.6402
10 36320.67 36320.3137 298.907352
8
4045.62608 303.1921
11 36320.67 3533.6437 26.50232775
3832.551059
28.7441
12 3533.6437+32787.027 3560.146 26.701095
TOTAL TOTAL INTERST 15273.80138
15414.85782
Normal loss 25723.04
Actual loss is 15273.80198
Simple interest
Actual loss is 15414.85782
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Compound interest.
INTERPRETATION OF FORD IKON
1. The Ex-show room price of the car is (4, 82,500).
2. In the price finance available only 85% (4, 10,125).
3. Show price deducted to the finance amount its means its means margin money.
4. The stamp required on the finance amount at 5%.
5. Various expenses added to the car (INSURANCE, LIFE TAX@ 12%, T/R
CHARGES, T/R CHARGES, EXT, WARRANTY (2nd yr) , ESSENTIAL
PACK. PROCESSING FEE)
6. Ford company mostly preferably at 13.5%.
7. Interest calculated at only finance amount (4, 10,125).
8. Interest is calculated 1, 00,000 only 8856).
9. Equally monthly installment required 12, 24 and 36 only.
10. After multiplied at finance amount.
11. Time period is less install amount is more.
12. Compound interest is calcuted on the remaining amount of the installment
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Ford Endeavour
Ex- ShowRoom price 148200
Finance amount 1259700
MARGIN AMOUNT 222300
INSURANCE * 57370LIFE TAX@ 12% 177960
T/R CHARGES* 500
REGISTERATION 2500
Ex- WARRENTY (2nd yr) 9225
INCIDENTAL CHARGES 5000
FLOOR MATS 4500
0.5 STAMP DUTY (on finance)* 62985
PROCESSING FEE * 3500
TOTAL (A) 54580
INSTALLMENT AMOUNT (12 months)
(13.5% INT ); 8856/- per lakh (B) 11559.032INSTALLMENT AMOUNT (12 months)
(13.5% INT ); 4,725/- per lakh (C ) 59520.825
INSTALLMENT AMOUNT (12 months)
(13.5% INT ); 3356/- per lakh (D) 42275.532
EQUATED MONTHLY INSTALLMENT
DOWN PAYMENT for 12 months =
(A)+(B) (1st INSTALLMENT)
657390.032
DOWN PAYMENT for 24 months
(A)+(C) (1st INSTALLMENT)
605360.825
DOWN PAYMENT for 24 months(A)+(D) (1st INSTALLMENT) 588115.532
FINANCE AMOUNT PAYMENT MADE BY
CUSTOMER AFTER PERIOD
12 MONTHS -79008.384
24 MONTHS -168799.8
36 MONTHS -2622.152
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INTEPRETATIO OF FORD ENDEAVOUR
1. The Ex-show room price of the car is (14, 82,000)
2. In the price finance available only 85% (12, 59.700)
3. Show room price deducted to the finance amount its means margin money.
4. The stamp required added on the finance amount at 5%
5 Various expenses added to the car (INSRANCE, LIFE TAX @ 12% T/R
CHARGES, EXT, WARRANTY (2ndyr) ESSENTIAL PACK PROCESSING
FEE)
6. Ford company mostly preferable at 13.5%
7. Interest calculated 100000 only 8856
8. Interest calculated at only finance amount (12, 59,700)
9. Equally monthly installment requires 12,24 and 36 only.
10. Time period is less install amount is more.
11. Compound interest is calculated on the reaming amount of the installment.
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Ford Fusion
Ex- ShowRoom price 576500
Finance amount 490026
MARGIN AMOUNT 86475
INSURANCE * 24120
LIFE TAX@ 12% 69300
T/R CHARGES* 500
REGISTERATION 2500Ex- WARRENTY (2nd yr) 5090
INCIDENTAL CHARGES 5000
ESSENTIAL PACK 3200
0.5 STAMP DUTY (on finance)* 24501.25
PROCESSING FEE * 3500
TOTAL (A) 225089.56
INSTALLMENT AMOUNT (12 months)
(13.5% INT ); 8856/- per lakh (B)
43396.614
INSTALLMENT AMOUNT (12 months)
(13.5% INT ); 4,725/- per lakh (C )
23153.68125
INSTALLMENT AMOUNT (12 months)
(13.5% INT ); 3356/- per lakh (D)
16445.239
EQUATED MONTHLY INSTALLMENT
DOWN PAYMENT for 12 months =
(A)+(B) (1st INSTALLMENT)
268482.864
DOWN PAYMENT for 24 months
(A)+(C) (1st INSTALLMENT)
248239.9313
DOWN PAYMENT for 24 months
(A)+(D) (1st INSTALLMENT)
241531.489
FINANCE AMOUNT PAYMENT MADE BY
CUSTOMER AFTER PERIOD
12 MONTHS -30734.368
24 MONTHS -65663.35
36 MONTHS -102003.604
FORD FUSION
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TOTAL 687110 SIMPLE
COMPOUND
MONT
H
PAYMEN
T
REMANIN
G
INTEREST @ 9% INT @ 9%
1 268482.86
4
418627.136 3139.70352 3139.70352
2 43369.614 375257.522 2814.43141
5
378397.225
5
2837.97919
1
3 43369.614 331887.908 2489.159 334702.3394 2510.267546
4 43369.614 288518.68 2163.8895 291007.4533 2182.5559
5 43369.614 245748.68 1838.6151 247312.5672 1854.844254
6 43369.614 201779.066 1513.34299
5
203617.6811 1527.132608
7 43369.614 158409.452 1188.07089 159922.795 1199.4209628 43369.614 115039.838 862.798785 116227.9089 871.7093162
9 43369.614 71670.224 537.52668 72533.02279 543.9976709
10 43369.614 28300.67 212.254575 28838.13668 216.2860251
11 28300.61+15069.04 28512.86458 213.8464843
12 3533.6437+32787.027
TOTAL TOTAL INT 16753.79048
17097.74348
Normal loss 30374
Actual loss is 16759.79048
Simple interest
Actual loss is 17097.7438
Compound interest.
INTERPERTATION OF FORD FUSION
1. The Ex-show room price of the car is (576500)
2. In the price finance available only 85% (490025)
3. Show room price deducted to the finance amount its means margin money.
4. The stamp required on the finance amount at 5%
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5. Various expenses added to the car (INSURANCE,LIFE TAX@12%.T/R
CHARGES
6. T/R CHARGES,EXT.WARRANTY (2nd yr).ESSENTIAL
PACK,PROCESSING FEE)
7. Ford company mostly preferable at 13%
8. Interest calculated at only finance amount (490025)
9. Interest is calculated 100000 only 8856.
10. After multiplied at finance amount.
11. Equally monthly installment required 12,24 and 36 only.
12. Time period is less install amount is more.
13. Complex interest is calculated on the remaining amount of the instalment.
CONCLUSION
As this is a case study related to credit financing (hire-purchase) of motor
vehicle. I came to know about this issued and suggested some valuable points to the
buyers of four wheeler and making them to know about pros and cons of the
method.
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I felt gland when, Iam analyzing this thing ford customers and my profound
thanks to fortune ford company for giving me this opportunity and making me
knowledgeable in four wheeler segment.
FINDINGS
1. To analyse to data pertaining about hire-purchase it requires a lot of
calculation.
2. If customer chooses, this option definitely it is a loss figure to him.
3. More formalities have to be fulfilled by customer, in getting a loan
Finance amount.
4. When compare to outhouse finance, in-house provide many pros like
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a. Time saving in getting the product
b. Easy delivery system
c. Support from provides on option to chosen third party for a Finance amount
d. Support from company regarding any issue
5. Generally person goes for the hire-purchase when they dont have a money
only.
6. High income people are willing to pay lumsum amount initially itself.
7. Though hire-purchase system, customer can get right on the product but
lacks right to sell it for other person.
SUGGESTIONS
1. If he/she is not having currency to buy four wheeler, it is advisable to
an Purchase desired product through hire-purchase.
2. From customers point of view it is recommended to go for the
purchasing even though he has money .But before going, one should
analyze the be a TIME VALUE OF MONEY concept once and he
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should look in to the can concept of simple as well as compound
interest.
3. General calculations done by customers are wrong, because they
forgot an about interest concept on remaining amount.
4. Is suggested to invest remaining amount in short term liquidity funds
a where assured principal is there with certain interest percentage.
5. It is advisable to customer to invest in capital markets, if he/she has
to an sound knowledge about it.
6. Make sure of not getting huge loss through hire-purchase.
BIBLIOGRAPHY
1. FINANCIAL MANAGEMENT BY IM PANDEY
VIKAS PUBLISHING HOUSES
PT. LTD 2006, 9TH EDITION.
2. FINANCIAL MANAGEMENT PRASANNA CHANDRA
TATA MCGRAW HILL
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PUBLISHING COMPAN LTD
2005, 5TH EDITION
3. TOTAL QUALITY MANAGEMENT BY PN MUKHERJEE
PRENTICE HALLINDIA
2006, 5TH EDITION.
4. FINANCIAL ACCOUNTING & S.P.JAIN & K.L.NARANG
ANALYSIS
Other Sources
WEB SITE - www. fortuneford.com
www. Wikiepedia.com
www.google.com
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