[GTO]

Read a very interesting tidbit in BVR Subbu's book on Hyundai India. Do you know why companies raise prices every January?

1. To clear up November & December stock. Customers are hesitant to purchase cars in December because, in just a month, their car will be of the old model year. Club December discounts + Jan price hikes, and it makes for a tempting proposition.

2. The price hikes come in Jan because you - as the car owner - also stand to gain in resale value (e.g. higher resale of a Jan 2021 car vs Dec 2020). So, it's a bit of that as well.

Subbu started this practice and it's pretty much the standard now.

[streetfighter]

Last week I inquired with the Volvo dealer at Mumbai, and the dealer informed that RTO charges will be levied on original pricing even when the offer is on - https://www.volvocars.com/in/offers
Ex-Showroom Price:
Rs. 41,25,000
Offer Price:
Rs. 37,99,000
The RTO tax component remains the same though. Can someone confirm what can be a recourse on this?
Also, please see the rate sheet attached. An insane amount is added as "Auxillary" and "Accessory". The dealers have the audacity to add "Auxilary Charges is mandatory". I see this pattern across all dealers, from Marutis to Audis. Next, all dealers have an highly inflated insurance quote. Overall, The dealer expects buyers to haggle and beg for a bargain. I suppose buyers feel satisfied when this gets discounted (false sense of achievement).
But as a buyer, I am pissed off with attitude. This is absolutely NOT a "hassle free buying scheme". I am buying the car ex-showroom, and not ex-factory. RTO should also have a mechanism to verify ex-showroom pricing. Moreover, our laws have to be more friendly towards consumers.

XC40 pricelist

[Turbanator]

Originally Posted by streetfighter

the dealer informed that RTO charges will be levied on original pricing even when the offer is on
The RTO tax component remains the same though. Can someone confirm what can be a recourse on this?

Your dealer is correct, manufacturers have to upload the MRP against VIN on the Vahhan portal for all vehicles. When your dealer will do the registration, factory amount will be available on the portal, and no one can change it except manufacturer!

You will have to pay fill RTO, do look at BH series thread in case you qualify.

[starrys987]

Originally Posted by GTO

Read a very interesting tidbit in BVR Subbu's book on Hyundai India. Do you know why companies raise prices every January?

Subbu started this practice and it's pretty much the standard now.

Interesting! Another thing to club around the year end discounts + new year price hike is the festival season from Oct-Dec. All this makes a great push for clearing up the year end stock.

[fine69]

Are there any more charges above the flat RTO tax, like any cess or anything?

My dealer's registration charge is 84k while on parivahan site I'm getting 79k as the registration charge, any idea why?

[Dry Ice]

Originally Posted by fine69

Are there any more charges above the flat RTO tax, like any cess or anything?

My dealer's registration charge is 84k while on parivahan site I'm getting 79k as the registration charge, any idea why?

Might be a dealership specific charge? Rounds up nicely to 5k, which makes this case even more likely.

If any additional cess are due, pretty sure parivahan site would not simply waive it off!

[thanixravindran]

Originally Posted by fine69

Are there any more charges above the flat RTO tax, like any cess or anything?

My dealer's registration charge is 84k while on parivahan site I'm getting 79k as the registration charge, any idea why?

It depends on the state. In TN, apart from Road Tax, Rs. 2500 will be charged by RTO (Rs. 600 INR as Registration charges, Rs. 1500 as Road Safety Tax, Rs. 200 as Smart Card and Rs.200 Service charges). Valid receipt with breakup will be provided by RTO.

Parivaahan does not show this and it shows only the Road Tax component. TN RTO website shows this charges though. So please check whether your state RTO website have this details.

[SR-71]

Originally Posted by blackwasp

Use this Parivahan link to check the road tax in your state.

This links asks for the "Sale amount:" not the MSRP for tax calculation. Technically this means all discounts should be reduced for tax calculation. However the Karnataka RTO calculates the tax on MSRP, not the sale amount. GTO had posted a similar conundrum faced by someone recently. Is there anyway to confirm this officially. This makes a significant difference for cars with higher sticker price and where discounts can be big sometimes.

[sany0023]

I had requested for detailed break-up of Tata Altroz DCA from Tata motors dealer. He sent this quotation.
They are charging more cess right? (at 3%). It should be (1%) for sub 4m petrol cars. Can I raise this issue to them?
But ex-showroom they have adjusted for what is released by tata officially..
Is it different for automatic cars? Please suggest.

[drsingh]

Road tax in Punjab is 8+1% as per my understanding. But on Vahan portal the tax is 10 %.

Any links , resources, explanation would be much appreciated.

The 1 % column reads S.SecTaxN.... something.

Any pointers?

[jinojohnt]

Could you please update this calculation based on the tax calculation in Bharath Series?

[viksingla]

Originally Posted by fine69

Are there any more charges above the flat RTO tax, like any cess or anything?

My dealer's registration charge is 84k while on parivahan site I'm getting 79k as the registration charge, any idea why?

From my recent experience with Haryana RTO. RTOs do have some additional charges apart from flat %
I was charged around 2k for items like - New registration, temporary registration, smart card fee, service charges, postal fee etc.

Then Dealer had charged additional 4k for the convenience/service provided by dealer. (apart from handling/delivery charges)
This 4k was not explicitly mentioned by dealer and were hidden under overall registration charges. I had asked for complete breakup from dealer for registration charges, which dealer refused to provide.
But after raising the concern with manufacturer, dealer had shared some breakup. Breakup of charges was completely made-up by dealer and hence I challenged that breakup. In the end, dealer agreed to refund this 4k.

this is about Honda Cars, purchased in Dec -22

[adithya.kp]

I am in a similar situation. The dealer said, he would reduce the ex showroom price in the invoice. ( Road tax will remain the same)
Can someone tell me what is catch or the problem here?. The net discount looks very good. So, does this really matter?. Thanks in advance.

Originally Posted by whitecloud

Example :
Dealer quote could be like this
Ex showroom price : Rs 1088000
Insurance etc : Rs 50000
Handling charges : Rs 6000
TCS : Rs 10880
Total Amount :Rs 1154880
Less discount : Rs 80000
Net price payble : Rs 1074880 ( Rtgs or chq amount paid of this amount)

In the billing ,it will be like this :
EX showroom price : Rs 1008000
Insurance etc : Rs 46000
Handling : 6000
TCS : 10080
Total amt payble : Rs 1070080
See the difference in the total amount payble .

[whitecloud]

Originally Posted by adithya.kp

I am in a similar situation. The dealer said, he would reduce the ex showroom price in the invoice. ( Road tax will remain the same)
Can someone tell me what is catch or the problem here?. The net discount looks very good. So, does this really matter?. Thanks in advance.

Please keep a tab on the TCS amount , insurance and state government road tax / other taxes amount in the final billing .
All the above are dependent on the exshowroom price and once the manufacturer reduces discount in pre gst price , the exshowroom price after gst reduces & the dependent variables like TCS , insurance and road tax will also get reduced.

I had experienced the above issue and therefore the dealer was apprised of the refund due to me which I got after few days .

Thanks

[adithya.kp]

Thanks for the response. TCS is not applicable here. ( <10 lakh)
For road tax, they said its the same. (rto site locks it at a value based on the original price). I agree on the insurance amount. But then they are giving the discount from this portion. IDV value might be affected, but wont be very substantial. So, what exactly is the issue with a lower ex showroom price in the invoice?. I am unable to understand.

Just to give more details, The OEM itself has a cash discount offer going on. The dealer discount is much more than this. ( Even without any bargain). I guess, they will spread the dealer discount over insurance premium and the ex showroom ( Which is already less due to OEM discount. )

Originally Posted by whitecloud

Please keep a tab on the TCS amount , insurance and state government road tax / other taxes amount in the final billing .
All the above are dependent on the exshowroom price and once the manufacturer reduces discount in pre gst price , the exshowroom price after gst reduces & the dependent variables like TCS , insurance and road tax will also get reduced.

I had experienced the above issue and therefore the dealer was apprised of the refund due to me which I got after few days .

Thanks