So are you thinking to buy a used car amidst this GST regime? Well, if the answer is yes then you must have had a good amount of money saved for your next purchase. Don’t worry we are not trying to scare you, rather what we want to tell you here is that with GST rolling this month (July 2017) you must think of buying a used car but for this you do not need a lot of money or pay extra due to GST. Thus, GST is not a curse for your second hand car purchase.
If that’s the case, let us bring you some facts – the impact of the GST on the second-hand car market will not just be 3.87 million units of the Indian second-hand cars. In fact, as per the market experts, more than a quarter of new cars that are sold in our country are later brought to the second-hand market for exchange, but this will not have any impact on the used car segment or in terms of price. On the other hand, the sale of the used cars on the dealer’s platforms will magnetise goods and services tax (GST) only on the margins that are made by the dealer. But the good news is that the customers need not worry about the apprehensions and the retail value of the used car.
Good news is that on Saturday it is announced that there will be no GST on the buying and selling of second-hand cars or goods. This is for the cars that are usually cheaper than the original price. The introduction of the goods and services tax (GST), has come out to be a boon and has brought joy to used car market and the used car dealers. It was thought the used car market will show up an upsetting growth owing to GST, but it has clocked healthy growth in recent years and, at 3.87 million vehicles a year, it was even bigger than the new car market of 3 million units.
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07 Feb, 2017