The government of India announced a reduction in taxes on vehicles, which will result in cheaper cars
In this post, we explore why it might be a great idea to book your new car right away and not wait until Diwali for the reduced tax implementation. We know that the government of India is planning a thorough GST reform to ease the burden on Indian consumers and boost the demand for goods and services. In fact, during his speech at India’s 79th Independence Day celebrations, PM Narendra Modi had made this announcement. The reduced GST will bear a direct influence on passenger cars and two-wheelers in India.
Why You Shouldn’t Wait To Book Your New Car?
Ever since the GST reform announcement, the industry experts have been commenting on how potential car buyers should go about all this. Instinctively, people think that once the GST reform is implemented, they will book their desired cars at lower prices. This is due to the fact that GST on compact cars could go down from 28% to 18%, while that on luxury cars, it could drop down from around 50% to 40%. However, the experts suggest that booking a new car right now might be a better idea. The reason is quite simple – one has to pay the tax not at the time of booking, but at the time of purchasing the car.
Therefore, if you book a car now, the delivery could take around 2 months. Therefore, by the time the GST reform in implemented, you will automatically be eligible to avail of the benefits. Hence, there won’t be any monetary loss. Secondly, right now you will have a wider range of options to choose from in terms of variants, colours, etc. But once the discounts kick in, everyone will flock to book the new cars. In such cases, it is possible that the waiting periods extend to the beginning of next year. In that case, we know that carmakers often announce price hikes at the start of each year. Consequently, you will have to pay a higher amount.
My View
We know that car sales surge during the festive season in India each year. In fact, the consumption is increased across various industries due to this auspicious time period. Therefore, carmakers also offer attractive benefits to make the deals sweeter. With the GST reform, it will become even more lucrative to get a car at this time. I am expecting huge sales numbers this time around due to these two huge factors. Let us keep an eye out for more details.
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