[bharat4ever]

Can someone please suggest a way of buying out a car under company lease?
If I intend to sell it immediately, is it possible that the actual buyer can buy out the lease car himself?

Why? I have a Jetta under car lease, and if the GST increases to 53%, I have nowhere to go.

[harishpr]

Originally Posted by bharat4ever

Can someone please suggest a way of buying out a car under company lease?
If I intend to sell it immediately, is it possible that the actual buyer can buy out the lease car himself?

Why? I have a Jetta under car lease, and if the GST increases to 53%, I have nowhere to go.

Im in the process of buying out from the lease (made full payment including the penalty on Jun 30th) and awaiting for the transfer of the car.
Yes, it is very much possible to buy a car under company lease.

• You have to request for a full future-payment schedule statement from the leasing company through your company's HR or Admin team. Tell them you want to close, and the leasing company will add all related charges and RV value, along with a massive 43% GST.

• Arrange and agree for Cheque/DD/RTGS/NEFT payment. There are few forms to sign and all this will be handled by leasing company.There is one special form that is intended to 'buy' the asset from your company. That will need 2 additional witnesses. This is the form the leasing company will use as a supporting document to transfer the vehicle from your company's name to your name.

• Make payment. Sit back. (I'm in this phase/step now).

• From my personal experience, it takes about 6-8 weeks for the entire process to complete.

• At last you need to visit the RTO with a set of papers provided by leasing company to complete the transfer formality. I'm yet to submit this.

The leasing company I'm referring to in this process is ORIX.

I'm not sure if the 3rd party (potential buyer) will be excited to go through this time-consuming process if car is under lease at the time of selling. However, I do understand your dilemma. If you transfer the car on your name, and then try to sell, you will be seen as 2nd owner (as per RC) and most buyers will try to bargain further down on this point.
In the current situation, selling any of these European cars in used market will fetch a heart-wrenching price. I have a Skoda Yeti and didn't even bother to seek quotes to sell. I will just keep it with me as a 2nd car.

[motorworks]

Newspapers state that some meeting was due on the 23rd August ( yday) to discuss the increase in Cess for sedans and SUVs, but I don't see any update anywhere! What a disaster this is turning out to be! First they announce GST rates, then they say they are going to re-look at it, and now absolutely no updates! This puts auto manufacturers in no man's land!

[Mindgrinder]

here is the news update, ordinance might be presented as early as tomorrow, i feel this is clearly a greedy and stupid mistake from the government.

https://auto.ndtv.com/news/cabinet-m...morrow-1743571

I am fine with highest taxes on vehicles but where is the public transport? and that too regulated one!


singapore, finland all have high taxes on cars but they have amazing public transport. Our government is trying to discourage users from buying a car but keeping the vote bank happy by not making lot of people lose jobs (keeping the car industry alive on the face of it). They should also bring a provision on anybody buying an SUV etc should automatically come under tax review including ministers but that is a far fetched dream.

[SR-71]

Its been cleared by the cabinet - cess on mid-size, large cars and SUVs to 25 per cent from the current 15 per cent (Source - Link below)

http://www.business-standard.com/art...3000383_1.html

[jaaz]

Everyone's worst fears has become a reality Today. The Cess on SUV's and Luxury vehicles has been increased from 15% to 25%.

More details will emerge by the end of the Day. So, the Pre-GST prices will be back again.

[pathik]

Now will the MH government reverse the road tax increase too? If not, then the OTR prices will be even higher than pre-GST

I got lucky that my car got invoiced yesterday. Even though this may not come into effect until 9th September, I feel it's better to be safe. I really don't think it's possible but is there any chance Govt can legally apply this cess retrospectively for all cars purchased after 1st July?

[SR-71]

Originally Posted by pathik

Now will the MH government reverse the road tax increase too? If not, then the OTR prices will be even higher than pre-GST

I got lucky that my car got invoiced yesterday. Even though this may not come into effect until 9th September, I feel it's better to be safe. I really don't think it's possible but is there any chance Govt can legally apply this cess retrospectively for all cars purchased after 1st July?

Do the state government benefits from the cess ? I believe they only get their GST due. If my understanding is right only the center's kitty benefit with increased cess, of course am no expert on the taxation system, someone with better understanding needs to weigh in. I have been contemplating a Octavia 1.8 TSI AT and this comes as a big blow !

[aviraj]

To escape the cess before the due date does a person need to just book the vehicle with a token amount or pay full price before due date? or can dealers generate advance invoice with old tax rates after getting token amount

[sgiitk]

@aviraj; I think you need the vehicle details for the invoice, so getting one far in advance can be tricky to say the least. It is the invoice which is used for Registration etc.

[volkman10]

Customers rush to purchase SUV's as the date of additional tax is yet to come into effect.

Cabinet approves Ordinance to hike cess cap on luxury cars, SUVs from 15% to 25%.


The GST Council's next meeting in Hyderabad on September 9 will likely decide on the date from a higher cess cap will be imposed on these class of vehicles; the council is now entitled to take a decision, when and by how much it decides to increase the cess.

Two out of 12 categories of vehicles will be affected by the hike in the cess cap.

link

link1

[DriveOnceMore]

Hi..

Can anyone help me regarding a confusion I am having about the prices of MS S-Cross after this revision in cess?
As S-cross is longer than 4m, will this car also come under 25% cess bracket?
Or only 1.6 variant will fall under this ?

I think I only have 10 more days in my hand, before GST counsil officially rolls this out.

[Santoshbhat]

The FM is thumping his chest, saying GST collections have exceeded the target for July. Shouldn't they rethink this decision (Cess hike) now? After all Auto industry is a major generator of employment and any setback to the industry could affect creation of jobs, an area of major concern for the present Govt.

[narayan]

Apart from a temporary blip in sales, I doubt this will have any long term effects on car sales to the extent of affecting the industry. Prices were anyway higher pre-GST and folks were lapping up Innovas/Fortuners and other similar cars big time. Its unfortunate that such frequent tax changes creates so much of decisioning stress across the chain but otherwise, this will hardly impact the overall industry.

The arrival of players like Kia with 12000 cr investment clearly points to macro trends over a 5-10 yr horizon that suggest a major growth expectation from the Indian auto market.

[pathik]

Originally Posted by aviraj

To escape the cess before the due date does a person need to just book the vehicle with a token amount or pay full price before due date? or can dealers generate advance invoice with old tax rates after getting token amount

For invoicing to be possible, you need to make the full payment (or down-payment plus loan disbursement) AND the Vehicle needs to be alotted to you - so you need the VIN and Chassis number of the car.