BENGALURU: Ahead of the implementation of GST from July 1, many vehicle dealers in the city are offering a slew of discount schemes to attract customers.
While many luxury car dealers are giving discounts of up to Rs 3 lakh or 4.25 per cent of the total cost, some of them have completely waived off comprehensive insurance charges of up to Rs 60,000.
Car manufacturers including Maruti Suzuki, Hyundai, Honda, Nissan, Mahindra and Mahindra, Ford India, Mercedes-Benz and BMW have already announced offers for customers till the end of this month. Most dealers in the city are also sending SMSes and emails asking customers to buy vehicles before the GST to get benefits.
Some two-wheeler dealers like Bajaj are also giving discounts up to Rs 3,600. In fact, some Bajaj dealers have put up ‘Overtake GST. Buy at GST prices now and save up to Rs 3,600’ banners in front of their showrooms to attract customers.
However, there seems to be a confusion among vehicle dealers and customers in the city about the impact of GST on vehicle prices. “We are yet to receive an official notification on the GST rates on vehicles. We want to clear the existing stock before GST comes into effect to avoid unnecessary paper work and also to avoid two taxes - pre-GST and post-GST,” said a leading car dealer in Central Business District.
A Maruti Suzuki distributer said prices of small cars and 350CC+ motorcycles are likely to be increased but prices of luxury vehicles, SUVs and two wheelers may be reduced after GST comes is rolled out on July 1. Some car distributors said they are also giving price protection to customers. It means a customer can now buy vehicles at pre-GST prices and the dealer will return the difference in ex-showroom prices after the GST implementation.
Sunayana P, a resident of BEML Layout, said, “I had decided to buy a new car and then quickly decided to book one as small cars will be expensive post GST. I am happy that the dealer also gave me a good discount,” she said.
A Nissan distributor in Kasturba Road said they are not charging comprehensive insurance on all vehicles till the end of this month. “We have received a good response from customers. We have waived off comprehensive insurance charges up to Rs 60,000,” he said.
A Mercedes Benz distributor said they are giving discounts up to 4.25 per cent of the total cost of the vehicle till June 28, while a BMW dealer said Rs 2 lakh-Rs 3 lakh discounts have been given on all models.
John K Paul, president of the Federation of Automobile Dealers Association (FADA), said: “Most dealers will incur a heavy loss as the government is also planning to double taxes (pre-GST and post-GST) on old spare parts. GST will lead to closure of authorized used car market because of the heavy taxes.”