GST cut, higher financing, lower rates hit the road

Loans up to 90% of a car's ex-showroom price means smaller down payment

- SAIKAT NEOGI

The cut in GST rates and banks financing up to 90% of a car's on-road cost is set to nudge those planning an upgrade from a two-wheeler or looking to switch to higher models. Lower interest rates, nil processing fees by some banks and festive discounts will further sweeten the deal.

The cut in GST rates to 18% from 28% has led to a drop in prices ranging between ₹40,000 to ₹1,55,000 on cars and sports utility vehicles (SUVs) in the mass market segment.

Adhil Shetty, CEO of BankBazaar, says, banks financing up to 90% of a car's ex-showroom cost and the cut in GST rates will fill the gap for households that were stretching to buy a basic car, enabling them to aim for better safety and comfort. "For two-wheeler owners, lower cost plus high loan coverage means a smaller down payment for their first car," he says.

Festive bonanza