[niv26]

I don't understand how people buy new cars with black money, where we need to give PAN and TDS(1%) in place. How does new Fortuner will get hit ?

what's the logic.

[ecenandu]

Originally Posted by chaudharysaab

Fortuner will have worst effect. This car is just launched and almost a status symbol for all local Pradhans, MLAs, small leaders etc. And they always buy that with lots of black money.
I think they will have to revert back to scorpio and safaris for white money buys.

Do you really think they buy a new car with black money? Heard of loans, yeah, almost all of the purchases are done using loans.

[sourabhzen]

Originally Posted by ecenandu

Do you really think they buy a new car with black money? Heard of loans, yeah, almost all of the purchases are done using loans.

I was at Honda showroom yesterday and the sales guys had very grim look on their faces. They had many cars ready for delivery but people are not taking them for the lack of cash. Yes, till day before yesterday I was of the impression that car dealings do not happen in cash.

[kartavya]

I don't think you can buy a new car with black money. But because a lot of people would have lost a lot of black cash over the past few days, they would probably be a bit more stingy in their spending and hold off on car payments even if its with white money.

[400notout]

Originally Posted by sourabhzen

Yes, till day before yesterday I was of the impression that car dealings do not happen in cash.

If not completely, at least some part is paid in cash / cheque / make an online transfer.Loans usually cover upto 90%. Some cash in hand will help you with last moment accessory shopping and also makes you feel better

[Carpainter]

Not just car buyers, think about those second hand car dealers. Those who bought second hand cars from buyers to sell for a good margin are in for a shock. Not only their inventory will now be stuck for months now, they might never get the deal they dreamt of.
Last but not the least, the accessory dealers will be hit as much as anybody else in this business.

p.s. Forget cars, as per today's TOI even restaurants are losing business as a big chunk of people still prefer cash as preferred mode of payment and due to restriction in withdrawals, nobody is ready to waste precious Rs.100 currency notes now.

[swami69]

Originally Posted by GTO

I pity the guy who sold his S-Class yesterday for 20 lakhs cash + 10 lakhs cheque .

Very true, many people mentioned about Apartment and Land Sale happened right on that day using a part DD and part cash method. What would they be going through

[Swapnil4585]

Originally Posted by swami69

Very true, many people mentioned about Apartment and Land Sale happened right on that day using a part DD and part cash method. What would they be going through

Nothing. Assuming everything with them up to 31-03-2016 is true and fair. Just disclose entire proceeds and sit in the 30% slab.

[earthian]

Originally Posted by Swapnil4585

Just disclose entire proceeds and sit in the 30% slab.

Lol. And the guy who bought the asset gets in the doghouse with the authorities. Where did that money come from?
Was talking to the salesman from Ford. He says that there has been no walk ins since the past two days.

[SmartCat]

I wonder if there will be a small spurt in used car sales. Those with wads of cash can "invest" in used cars with the help of unscrupulous dealers (who will then deposit the cash in bank by year end). No PAN number, and they won't bother registering the car on their names. Most cars lose just 5 to 10% value in 6 months. When people are ready to pay 30 to 40% for conversion, taking a 5 to 10% hit (plus whatever the user car dealer charges for his trouble) should not be an issue.

Does this theory carry any weight?

[kartavya]

Originally Posted by smartcat

I wonder if there will be a small spurt in used car sales. Those with wads of cash can "invest" in used cars with the help of unscrupulous dealers (who will then deposit the cash in bank by year end). No PAN number, and they won't bother registering the car on their names. Most cars lose just 5 to 10% value in 6 months. When people are ready to pay 30 to 40% for conversion, taking a 5 to 10% hit (plus whatever the user car dealer charges for his trouble) should not be an issue.

Does this theory carry any weight?

How do the used car dealers deposit loads of cash without the IT department getting a hunch?

[SmartCat]

Originally Posted by kartavya

How do the used car dealers deposit loads of cash without the IT department getting a hunch?

Remember that unscrupulous Jewellers are taking the risk of accepting 500/1000 bank notes, even though customer PAN is required by law. Obviously, they are making hay while the sun shines.

"When IT department calls, we'll see"

[Swapnil4585]

Originally Posted by earthian

Lol. And the guy who bought the asset gets in the doghouse with the authorities. Where did that money come from?
Was talking to the salesman from Ford. He says that there has been no walk ins since the past two days.

That is his lookout. For you, either sit in 30 percent or forget the entire cash.

[vrprabhu]

Originally Posted by kartavya

How do the used car dealers deposit loads of cash without the IT department getting a hunch?

May be off topic - but who do you think has substantial stash of 'unaccounted' cash in their homes?

The class which immediately comes to mind (after p*********s and extoronists / goons), are those involved in 'tax' collection (income/sales/propety/road et al) and those who specialise in lending hard cash with no questions asked at short notice.... if they were able to manage the system so long, they will do so in future. And, whatever hit they take now, will get passed on to us gullible public in the long term.

So the question of getting a 'hunch' needs to be viewed from the angle that "Charity begins at home" (If I am any more explicit I could either get banned on this forum or be sued for defamation....)

Originally Posted by smartcat

Remember that unscrupulous Jewellers are taking the risk of accepting 500/1000 bank notes, even though customer PAN is required by law. Obviously, they are making hay while the sun shines.

"When IT department calls, we'll see"

Right. Hope every one sees eye-to-eye and come out with a 'WIN-WIN' situation for them.... and we end up back to square one in a few years. My point is, follow up measures need to carry forward this momentum. In that case used car market may really witness some long term benefits, as all the deals will be clean.

Originally Posted by Swapnil4585

That is his lookout. For you, either sit in 30 percent or forget the entire cash.

Hmmm..... for the first time, the 'surgical strike' has induced an element of fear. The quantum of penalty (200% of tax amount) which will be levied if 'detected' will ensure that what is left will get you peanuts..... so from that angle what you say makes sense.

[akshaymahajan]

Originally Posted by smartcat

Remember that unscrupulous Jewellers are taking the risk of accepting 500/1000 bank notes, even though customer PAN is required by law. Obviously, they are making hay while the sun shines.

"When IT department calls, we'll see"

And I think they just called. Heard about a lot of raids in Delhi today.

Coming back to topic, if anyone actually gets a good deal, do post it on the thread. On the lookout.