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  • Things You Need to Know While Importing a Car in India

    by Tanvi Bodhe | Apr 14, 2021

    Are you a car enthusiast who spend hours admiring the masterpieces with wheels from around the world? Have you been pining for a specific car, luxury or vintage, that is not available in India? We feel your pain; it’s quite the disappointment when the thing you most desire is not available in your country.

    Don’t worry! You can always purchase a car and import it to India and drive your dream car in your own country. A motor insurance policy will provide the financial security to your imported car against any loss or damage it may suffer during any unforeseen circumstances. Here are some of things about importing a car in India you must know as per the provisions laid down by the Directorate General of Foreign Trade (DGFT):

    When Can You Import a Car?

    You are allowed to import a car in India only under the following circumstances:

    • If the car is not manufactured by Indian companies.
    • If the car is not registered in any other country, under any of their laws.
    • If the car is not leased or loaned at the time of importing.

    The Type of Car You Can Import

    It’s important to know that the process of importing a car in India is permitted only through certain custom ports. They are as follows:

    • Mumbai
    • Nhava Sheva
    • Delhi Air Cargo
    • Chennai
    • Kolkata
    • Cochin
    • Tughlakabad

    Things to note when importing a car via dealer

    You can always seek help of a dealer to import your new ride to India, which will make the process easier and quicker also you need to buy car insurance for your imported car to protect against unforeseen circumstances. . However, in order to do the same, you need to follow certain guidelines as listed below:

    • Get the Road Worthiness Certificate issued by any testing agency of the country from where you’re importing the car. This is to ensure that your importation certificate is compliant with the rule 126 under Central Motor Vehicle Rules, 1989.
    • While importing the car, you must submit a written proof that serves as a confirmation that the compliance certificate as required under rule 126 of the Central Motor Vehicle Rules, 1989 will be submitted within six months of the importation process.

    Import Duties on Cars

    This can be one of your main concerns while importing a car in India. Following are the applicable import duty rates for importing a car in India:

    Criteria / Applicability
    Import Duty in %
    Used Car 125
    Cars CBUs whose CIF value is more than $ 40,000
    or Petrol Engine > 3000 CC
    or Diesel engine > 2500 CC
    100
    Cars CBUs whose CIF value is less than $ 40,000
    and Petrol Engine < 3000 CC
    and Diesel engine < 2500 CC
    60

    Exceptions

  • 7 key benefits of buying a second hand car instead of a new car

    by Tanvi Bodhe | Apr 13, 2021

    Opting for a used car leads to more savings and enables you to buy a premium model in the same budget.

    When it comes to buying a car, you need to take a lot of crucial decisions, such as, what will be your budget, the type of car you wish to purchase, the make, model, and colour of the car, choosing a car insurance whether you will make the full down-payment upfront or avail the services of a car loan. One such important choice that you need to consider is whether you would like to purchase a new car or opt for a second-hand car.

    While purchasing a brand-new car can be an exhilarating thought, opting for a 2nd hand car has its own advantages. According to the market surveys, the used car sales in India have gone up by 50% during the past one year, mainly due to the entry of organised players in the segment and greater assurance of the vehicle being sold. Read more to know about the 7 major benefits of buying a second-hand car instead of a new one and how it can be a smart decision for you:

    Facilitates affordability and savings

    The most specific advantage of opting to purchase a second-hand car instead of a new one is that it facilitates more affordability and hence, increases your savings. You can own a pre-owned car of your preferred make and model at a much lesser price when compared with a new car of the same model. For example, you can own a 3-year old Maruti Swift Dzire at an approximate price of Rs.3 to 3.5 lakhs whereas the new car will cost you around Rs. 6 to 8 lakhs, depending upon the variant. However in this case, motor insurance is something you should always rely on

    Minimizing the depreciation of your vehicle

    The value of a new car starts depreciating from the moment it is driven out of the showroom. Typically, the market value of a car decreases by about 20% per year for the first few years after its purchase. This means that a new car will lose roughly 50% of its value during the first two to three years. Though various cars have different depreciation rates, some luxury cars have a steep depreciation rate over the first few years.

    Cars that are in low demand also lose their value quite significantly over time. You can avoid that hit by buying a second-hand car as it would have already suffered its maximum depreciation by then and will not lose much value in the forthcoming years. Some of the factors that you should keep in mind before calculating the depreciation and buying a second-hand car at much cheaper rates include:

    • Brand: Some brands have prolonged value due to their popularity, while others lose their value significantly due to increasing competition. Thus, thorough research can get you close to 60 percent of a car’s price in three years.
    • Vehicle Condition: It is recommended to check the fuel exhausts and any oil leaks before choosing your second-hand car which gives you the power to bargain better and save money on future repairs
    • Performance: A car offering better distance per liter of fuel is your best bet as it will not only save you money but is also an indicator of a car’s good performance.

    Avoiding the registration fees and other charges

    When you buy a new car, you will have to make numerous payments to the Government, such as one-time registration fees, road taxes, and other RTO charges which swell up the on-road price of the vehicle. Opting for a used car is instead a better option to avoid these extra charges as it would have been already paid by the first owner of the vehicle. This, in turn, will help you get full value for your money and you don’t need to shell anything extra out of your pocket to take your favorite car out for a spin.

    Document Checklist for Buying a Second-hand Car

    Second-hand car buyers should check the following documents thoroughly before confirming the purchase:

    • Registration Certificate
    • Purchase Invoice of the car
    • All documents for existing insurance policies
    • Documents for the service history of the car
    • Forms- 28, 29, 30, 32, 35
    • Invoices for Road Tax
    • Pollution Control Certificates
    • Owner’s Manual

    Full assurance and warranty for the vehicle


  • All You Need To Know About High Security Registration Plates

    by Tanvi Bodhe | Apr 13, 2021

    Until recently upon purchasing a motor vehicle, you had the option to customise the license plate with colour, language and font of your choice. However, all of this has changed with the Ministry of Road Transport and Highways (MoRTH) bringing about amendments in the Central Motor Vehicle Rules, 1989.

    The new mandate requires all vehicles sold on or after 1st April, 2019 to be affixed with High Security Registration Plates (HSRPs). and to have a motor insurance for your vehicle is also a important factor. These plates will form a uniform pattern of displaying motor vehicle registration numbers across the country. The Ministry has taken this step to curb vehicle theft and enable easy tracking of lost or stolen vehicles.

    Let’s discuss further about this new rule, how the new plates look like and how these are different from the ones already existing in our vehicles:

    How do I get an HSRP for my vehicle?

    According to the Ministry’s new rule, a vehicle manufacturer has to provide these HSRP to the dealers along with the vehicle. Once you make a purchase, the dealer will stamp the allotted registration number on the plates and fix them to your vehicle. You should have a two wheeler insurance or a car insurance along with the high security registration plate to stay protected during any emergencies.

    Auto makers need to ensure that dealers have the necessary infrastructure to place the mark of registration on the HSRPs and print the third registration plate, wherever required. The new rule also states that the cost of an HSRP and the cost of affixing it to the new vehicle after placing the mark of registration should be included in the price of the vehicle. Thus, if your dealer demands an additional amount for the HSRP, you know that it is against the rules.

    Moreover, the HSRPs come with a guarantee of 5 years, wherein if it is damaged or its letters or numbers fade away, the dealer who fitted the plate will replace it free of cost.

    What does an HSRP look like?

    The HSRP are made of aluminium and come with reflective tapes. They are hot-stamped with a chromium-based hologram of the Ashok Chakra in Blue on the top-left corner. At the bottom-left corner, a 10-digit permanent identification number (PIN) is etched with laser. In the middle of the chakra hologram and the laser code, ‘IND’ is inscribed in Blue.

    ‘INDIA’ is inscribed in font size 10, font type Arial Bold and colour Blue at an angle of 45-degree in hot stamping foil across all letters and numbers on the plate. The plates also feature two non-removable snap-on locks that, if somehow removed, will remain non-usable.

    Besides the front and rear registration plates, a chromium hologram sticker with high refractive index is affixed on the bottom-left corner of the windshield from the inside. This self-destructive sticker is the third registration plate that contains details like the 10-digit PIN, the actual registration number, the engine and chassis numbers, the date of first registration of the vehicle and the name of the registering authority.

    The specified background colour of the hologram sticker/third registration plate is orange for diesel vehicles, light blue for petrol and CNG vehicles and for grey for other vehicles.

    Does my old vehicle need a new HSRP?

    As per the Ministry of Road Transport and Highways (MoRTH), existing vehicles will also have to switch to the new HSRP. For the purpose, you have to visit your car dealer. You will be required to surrender your old registration number and destroy the number plate.

    After the process of registration is over and the HSRP is affixed to your vehicle, the new registration number will be electronically linked to your vehicle.

    Why is HSRP important?

    You might wonder why your existing registration plate needs to be changed at all as it seems to serve its purpose well enough. However, it must be noted that the old number plates are very easy to tamper with, which makes stealing a vehicle very easy. Also, the first thing that thieves generally do after stealing a vehicle is remove the number plates.

    Further, some of us customise our vehicle’s number plate very artistically, which makes it difficult for anyone, including the police, to read. Consequently, the police fails to track down such a vehicle in case it is lost or stolen. The uniquely styled HSRPs are a one-stop solution to all these problems as these plates are tamper-proof and act as a deterrent to thieves.

  • Planning to Get a CNG Kit? Here's What You Should Know

    by Santosh Kevale | Mar 02, 2021

    Things to know before getting a CNG Kit

    Spiralling petrol and diesel costs are enough to convince car owners to get a CNG kit. When petrol costs ₹72 per litre, diesel costs ₹ 60 per litre and CNG costs only ₹43 per kilogram*, it is obvious you will consider getting a CNG kit for your car.

    A CNG kit can bring a stark improvement in your car's mileage. It can reduce the average cost per kilometre by ₹3 to ₹5 depending on your car's model. It is not only economical but also eco-friendly. But befor. CNG kits are a smart choice to save on fuel cost and reduce pollution and similarly a car insurance policy is recommended to cover the increase in the maintenance cost of the vehicle. you plan to buy it for your car, here are a few things you should know:

    • Compatibility and Licensing
    • Before getting a CNG kit you must check your car's compatibility with the CNG fuel system because not all cars are compatible with it. Even if your car is compatible, you will further need approval from the government to get a CNG kit.

      Getting an approval from the local authorities can be hectic and time consuming. Once approved, you will get a 'Registration Certificate' (RC) branded with “fuel change” after which you can use the CNG kit. However, if you plan to get the kit for a new car, it will take much less time than converting your old car and getting its RC stamped.

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