India’s burgeoning car market is seeing growth at an extraordinary rate — be it the purchase of brand new cars or used ones. Yet, often, the total cost of owning a car doesn’t end at just the payment for the vehicle. There are several additional costs, like the car registration charges that also contribute to the ownership charges. Understanding these charges can help a potential buyer budget better and also aid in navigating the paperwork.
Deciphering the Basics: Car Registration Charges in India
Simply put, car registration charges refer to a one-time cost that the new owner of the car has to pay to get their vehicle registered with the Regional Transport Office (RTO) in India. It’s a mandatory charge that is paid to the government and is vital for legally driving your vehicle.
Car registration charges in India are not universal and are based on several factors. These factors typically include the car’s cost, engine capacity, seating capacity, the place of manufacture, and fuel type. The cost varies significantly across different states and Union Territories due to different slabs of road taxes, all of which counts under the car registration charges.
Comprehending the Cost Break-Up
The car registration charge generally constitutes around 6-14% of the car’s ex-showroom price. Additionally, in some states, the charge is hiked for cars that are priced above a certain threshold, for instance, INR 20 Lakhs. Therefore, a higher-priced car may attract a greater percentage of registration fees.
It’s also worth noting that for eco-friendly vehicles like electric or hybrid cars, the government provides various incentives by slashing the registration charges. Luxury cars, on the other hand, attract a higher rate of taxation leading to an increase in registration charges.
Understanding the Registration Process and Charges for Used Cars
Unlike brand new cars, used, or second-hand cars have a different procedure. The registration costs for used cars, like transfer of ownership, hypothecation charges, and no objection certificate (NOC) need to be considered and fully understood by the buyer.
Navigating the Aspect of 2nd Hand Car Loan Interest
Second-hand car loans are a boon when it comes to purchasing a used car. However, it’s important to remember that while a 2nd hand car loan interest may decrease the immediate financial burden, it does add to the total cost of owning the car.
The 2nd hand car loan interest varies across banks and other lending institutions but typically ranges from 9.25% to 17.5%. These rates are subject to the borrower’s credit score, income, loan amount, car model, and age.
Wrapping Up Health Insurance
Even after taking care of all the costs associated with buying the car and other charges like car registration charges and 2nd hand car loan interest, it’s advisable to get car insurance. While third-party car insurance is mandatory in India, comprehensive insurance can also be sought for added protection.
With the Bajaj Finserv App, you can expedite the process of obtaining your ideal vehicle by applying for a car loan with ease, monitoring the progress of your application, and enjoying hassle-free processing. Convenience at your fingertips!
Conclusion
Navigating the world of car ownership can be tricky; there are numerous charges and processes to consider. However, armed with the right knowledge and understanding of these car registration charges and costs like the 2nd hand car loan interest, potential car buyers can make informed decisions and avoid any unwelcome surprises down the line. Remember, the crux of a satisfying car purchase lies in detailing, awareness, and a well-curated budgeting strategy.