By Amber Banerjee
Copyright timesnownews
If you live in Bengaluru, Karnataka, then buying a new car might be an investment that will leave you with buyer’s remorse. This is because the same car you would buy in Bengaluru would cost a lot more than what someone pays for it a few hundred kilometres away in Pondicherry. From inflated RTO charges to additional state-specific Cess components, here’s why buying a brand new car feels like a rip-off in Bengaluru. Also Read: Victoris SUV Prices Revealed – Value For Money Maruti Suzuki Or Expensive 5-Seater? 1. Highest Road Tax Rate In India: The core reason behind cars costing a fortune in Bengaluru is the high RTO charges and Road Tax rates in Karnataka. The current road tax slabs in Bengaluru dictate a 13 percent levy on cars under Rs 5 lakh ex-showroom cost and up to 18 percent levy on cars that cost over Rs 20 lakh ex-showroom. Additional rates of 14 percent and 17 percent are imposed on cars above Rs 5 lakh and Rs 10 lakh, respectively. 2. Additional/Hidden Charges in Karnataka: Apart from the high road tax, car buyers also have to pay additional charges to the Bengaluru RTO that can go up to several lakhs. These include an Infra Cess of 11 percent, a Registration Fee of Rs 600 on average and a Hypothecation Fee of Rs 1,500 if the car is financed. Additionally, you also have to pay a Road Safety Tax worth Rs 1,000 and the FASTag Fee of Rs 600. 3. Actual On-Road Cost Of A Rs 10 Lakh Car: Considering the up to 18 percent Road Tax slab, combined with the additional 11 percent Infra Cess and other smaller components, here’s what it would look like if you bought a car worth Rs 10 lakh in ex-showroom value in Bengaluru, Karnataka. ⦁ Road Tax: The 17 percent tax slab on cars worth Rs 10 lakh or above, the customer pays Rs 1.7 lakh in road tax. ⦁ Infra Cess: The 11 percent Infra Cess liability adds Rs 18,700 to the final purchasing cost. ⦁ Other Charges: Smaller components mentioned above make for an additional Rs 3,700 to be paid towards on-road charges. In total, the Rs 10 lakh ex-showroom car attracts Rs 1.92 lakh in Road Tax and RTO charges alone. Moreover, we have not even accounted for the higher premium buyers have to pay for the mandatory car insurance in metro cities like Bengaluru. When compared to Pondicherry’s 6-7 percent liability, or Delhi’s 8-10 percent road tax liability, Bengaluru does put a larger dent in the buyer’s pocket. 4. Ex-showroom Cost: The ex-showroom cost is the only component in this discussion that remains the same across the country. Earlier, it would include factors such as Factory Cost, Dealer Margin and also tax components such as Central GST, State GST and Cess of up to 30 percent to 50 percent, depending on the model. However, from September 22, all cars will have a uniform 18 percent or 40 percent GST rate included within the ex-showroom cost. This would bring down costs by 10 percent on average across different segments of vehicles. What Can You Do? If you are considering a new car purchase in Bengaluru, then it would be a good time to make a decision soon. This is because you can combine the new GST-triggered price drops with dealer discounts that will be offered during the festive season. So while buying a car is soon to get cheaper across India after the uniform GST comes into place, the on-road cost of cars in Bengaluru would continue to carry on its unique brand of having an extra sting. Keep reading Times Now Auto for more instant updates on car prices.
