Be ready to shell out extra duty on luxury cars, both old and new

June onwards, luxury cars in India costing more than Rs 10 lakh, either old or new, will be attracting an additional 1% duty, which would make them a tiny bit costlier. However, it will not affect the sale of used luxury vehicles. The additional duty will be payable to the dealer or private seller of the vehicle.

Used car marketers say that even though the 1% additional duty is 'cumbersome,' this rule will not leave any impact on the sale of used luxury vehicles.

"The impact on used luxury vehicles sales will be minimum," said Vinay Sanghi, founder and CEO of CarTrade. The reason is the overall percentage of used luxury vehicle sales, which is too small for this impact to be worrisome for the traders.

Luxury cars in this range make up anywhere between 2 to 5% of the overall used car market, however, its growing at a rapid rate, faster than the overall used car market.

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