Thinking about buying a new car? Have that extra tax refund cash to spend? This might be the right time for you to pick up your next ride… for a bargain. It just so happens that the 2012 Indian fiscal budget was decided mid-March and doesn’t affect pre-budget prices particularly if you booked your vehicle before the budget or the dealer is selling older stock.
Car companies said the new rates will be applicable on dealer dispatches beginning March 16. Given that the Budget this year was in the middle of the month rather than at the end, dealerships will likely have old stocks which can and should be sold at the old rates. What this means to you the customer is that you can demand a better price while going for a new vehicle or till stocks of the old vehicles last. Given that the auto industry has been facing a slowdown in demand, except in February when the expectation of an excise increase spurred sales, dealers can be persuaded to offer a better deal despite the excise hike. The booking issue is also important given that many diesel models – the only segment where demand has seen good growth in recent months – boast long booking lists.
Industry experts also said that with service tax and excise duty increase impacting demand, car makers and dealers will have to roll out incentives to boost sales. Car marketers already said the double whammy will badly hit sentiment and the market may not bounce back in the second half of the fiscal as earlier expected.
Headed to your nearest dealership yet?