If you have been waiting to buy a car for some time now, then GST has been a harbinger of good news for you. Broadly speaking, most cars are expected to become slightly cheaper after the GST implementation.
As of today, there will be a standard GST of 28% on all vehicles irrespective of make, model, engine capacity or body type. But over and above this 28%, there will be and additional cess levied depending on the segmentation of cars (ranging from 1% to 15%). This effectively means a reduction of 2-3% for small & compact cars. For larger cars, the tax reduction ranges from 1.7% to whopping 12%.
So all in all, chances are high that whatever be the chosen car, it would seem some prices cuts.
Therefore, it makes sense for you to grab this opportunity and buy that car. If you wait longer, it’s possible that automobile companies might increase the prices if raw material or other input costs increase. And if you don’t have the money with you for the car, then there is always help at hand in form of car loans.
Car financing companies like Tata Capital offer up to 100% of the ex-showroom price of the car as loan. Repayment is also available for up to 5 years. So if you don’t want to burden yourself too much with the loan repayment, then you can opt for a longer tenure. For example, if you take a vehicle loan of Rs 6 lakhs for 3 years, your car loan EMI would be about Rs 20-21,000. But if this doesn’t seem to fit your monthly budget, you can easily opt for a 5-year tenure with an EMI of Rs 13-14,000.
So GST has come as a blessing in disguise for those who were just on the verge of buying their new cars. And with affordable financing options easily available, there is no point delaying the decision to buy a car now.