Why new car deals vary in different cities

Have we ever wondered what are some of the factors to get us that best deal in the country?

As enthusiasts, we are always on the look out for the best deals for our wheels. But, have we ever wondered what are some of the factors to get us that best deal in the country? I have tried to list out some of them. BHPians, please add to the list. 

1. Dealership distance from the factory – While almost all carmakers have a pan-India ex-showroom price, the deals offered could vary based on the proximity to the factory. Inventory lying in plant is easier to dispatch to local dealer – take in case Chakan and Pune, Gurgaon and Delhi-NCR and so on. Hence, you could get a good deal for a Fiat or Tata in Pune, Maruti in Gujarat or Delhi NCR, etc.

2. Local Road Taxes – Road tax varies between 2% and 20% across India. EVs are usually exempt in most states, but for ICE cars, the union territories are the place to register to get a good OTR price.

3. Dealer’s inventory – The best deal is the one you can get on a car lying in the dealer’s stock. A dealer would like to sell off the car remaining unsold. There could be many reasons for the same – customer cancelled, manufacturer sent variant/colour which is hard to sell, or it’s a car in low demand. 

4. Overhead costs – Dealerships in Metro cities pay higher rent and higher salaries. A dealer in a smaller / tier 2 city with lesser overheads will gladly part away with a little bit of his margin to ensure a sale. 

5. Car colour – Majority of cars sold in India are either white or silver. Darker shades are usually not preferred by buyers especially in the sub 15L price bracket. I’m sure you can get a good deal on a black Ciaz than a white one. 

6. Group buys – Know friends who are willing to pick up the same car? Negotiate together with the dealer, and you can get a good deal. I remember a group purchase by Abarth owners got them a very sweet deal.

7. Rare Variants – Cars like the JTP twins, Polo GTi, Octavia vRS, Swift Zxi, Nexon EV etc. are usually not sold in good numbers compared to other variants. However, the dealers do get some allocation for these cars. Approaching a dealer who has such a car in his inventory can get you a good deal. Related thread – Analysis: Which is the most popular variant?.

8. Discontinued models – When carmakers announce that some models / variants would no longer be manufactured, it makes sense to pick the ones already in transit / with dealers. A lot of diesel cars were sold at good discounts prior to the BS6 changeover.


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