Used car prices to fall post-GST rate cut, fewer discounts on new cars

LOWER PRICES OF NEW CARS WILL CERTAINLY HAVE AN IMPACT ON USED CAR MARKET

- NIRBHAY KUMAR

NEW DELHI: With new car prices falling significantly post GST cut beginning September 22, 2025, the country's used car market is also expected to see prices going down by upto 10 per cent, according to car dealers.

Even as prices of used cars are set to fall, the demand in the used car market is likely to remain muted as buyers, especially those planning to upgrade from two-wheelers, would look for availing the benefit of substantial price cut as a result of lowering GST on small cars from 28 per cent to 18 per cent.

As part of GST reforms, the GST Council in its decision on September 3, 2025, decided to move to a two-slab rates of 5 per cent and 18 per cent with small cars and bikes (upto engine capacity of 350cc) being placed under 18 per cent. A special rate of 40 per cent has been decided for luxury and sin goods. High-end cars would attract 40 per cent GST.