Home News Automobile Industry The ‘Heavy Discount’ on BS 3 vehicles – How misleading are They?

The ‘Heavy Discount’ on BS 3 vehicles – How misleading are They?

IndiaCarNews spoke to some dealers in Delhi and Jaipur and found out the truth behind the ‘heavy’ discounts.

  • Shilpa Chopra
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BS 3 Discount on bikes scooters reality

Soon after the Supreme Court imposed ban on BS III vehicles, dealers announced heavy discounts on the BS III stock, in a bid to clear inventory. The discounts were in the offing since mid-March however the recent ban further ignited the situation, leading to panic among companies and dealers. In India, sales are largely driven by festivities that follow lucrative discounts and in this case both are proving to be favourable for the dealers. The outbreak of Navratri, Gudi Padwa and heavy discounts (which may not actually be so lucrative) post ban on sale of BS III vehicles from April 1, 2017, are luring customers to benefit from the situation.

But are these discounts really as rewarding as they are being presented or are they misleading? IndiaCarNews spoke to some dealers in Delhi and Jaipur and found out the truth behind the ‘heavy’ discounts. The total discount on Yamaha Ray ZR base model for up to Rs 12, 500 was including the optional accessories, premium colours and insurance. After removing the cost of accessories, insurance and add-ons the actual discount was around up to Rs 6,000.

The Reality Behind the Discounts

The dealers were already offering 10 -15% discount from mid-March which went sharply up to 20-25% on slow selling models like Yamaha Alpha, Yamaha Ray ZR , Honda Dio and Mahindra Gusto owing to the recent ban. While the discount ranging between Rs 12,000 to Rs 13,000 seems mouth-watering, there is a catch to it. Before you happily buy the discounted vehicle make sure you understand the price break up which could be misleading.

Also Read: Supreme Court BS III Vehicle Ban – The Myths & Truths

Questions You Should Ask the Dealer

The accessories like helmet etc are optional on the two-wheelers. We spoke to some dealers in Delhi and Jaipur and tried finding out the discount on Yamaha Alpha base model. Usually customers opt to buy accessories from a local vendor at a relatively cheaper rate. It is important to know if the dealers are adding this cost to the BS III vehicle as a mandate on the pretext of discount.

What is the actual discount after removing the cost of accessories from the total discount?

If the amount of discount is insignificant between Rs 4,000 to Rs 5,000, isn’t it better to opt for BS IV compliant vehicle.

Here’s an example to make you understand it better

Yamaha Ray ZR Price in Jaipur

Variant Drum Disc
Ex-Showroom (Approx)  Rs 54,000  Rs 57,000 
RTO (Approx)  Rs 4,800  Rs 4,900
Insurance (Approx)  Rs 2,000  Rs 2,100
On Road Price (Approx) Rs 60,800 Rs 64,000

What did the dealer quote for Yamaha Ray-ZR?

Variant Drum Disc
Ex-Showroom (Approx) Rs 54,000 Rs 57,000
RTO (Approx) Rs 4,800 Rs 4,900
Insurance (Approx) Rs 2,000 Rs 2,100
Compulsory Accessory Kit Rs 3,000 Rs 3,000
Premium/Special Color Rs 3,000 to Rs 4,000 Rs 3,000 to Rs 4,000
On-Road Price (Approx) Rs 66,800 Rs 70,000

The price-break up for the drum and disc variant of Yamaha Ray ZR costs around Rs 60,800 and Rs 64,800 respectively. These prices also include vehicle insurance cost which you can buy from outside, however dealers compel you to buy it from them at the time of purchase. The optional add ons on the Yamaha Ray ZR that primarily include accessories, premium colours etc are available at an additional cost. Currently dealers are adding this cost to the ex-showroom price which increases the price. The cash discount of 12,500 is being given on this amount, however if you remove the insurance amount and cost for add ons, the actual discount estimates at around Rs 6,000 which is not a very lucrative offer considering that you are buying a BS III compliant version and the BS IV version is already available at a slightly additional cost.

Here is another example, Honda’s ace model, Activa is available in BS III and BS IV versions for retail. Even with the discounts the price difference between both is not more than Rs 4,000 to Rs 5000. With such insignificant price difference, one should be rational while making a choice.

Another point that we would like to bring to your notice is that there is usually a discount on the slow selling models through the year or during festivities.

Discounts are luring and can get you a good deal otherwise, but it is important to be aware of the actual break-up before making a choice. Since today is the last day for the purchase of BS III vehicles, ensure you do not end up making a foolish deal.

Note: We don’t claim that all dealers are doing this, but some of them surely are.



 

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