| PROCESS OR DOCUMENTATION
Initial (Down) Payment
Initial payment or down payment is consisting of a portion of the bare value of the vehicle and Lifetime tax, Registration Expenses, Insurance premium, Documentation and Processing Charges. In some schemes advance EMI may also become part of down payment.
Head |
Description |
| Down Payment |
A Down Payment of 20 to 50% of the bare value of the vehicle has to be collected. The Percentage depends upon risk perception arrived. |
| Life Time Tax |
It is calculated as 7% plus 10% surcharge (7.7%) of the bare
Value of the vehicle
(Subject to change from time to time by the Government) |
| Registration Charges |
It comprises of charges for Temporary registration, Permanent
Registration, H.P. entry charges, and service charges. |
| Insurance |
Insurance is calculated as follows as per prescribed calculation chart (Subject to change from time to time)
Example:
Calculated for vehicle cost of (sum assured) Rs. 41,200 (100CC):
| Sum Assured |
41,200 |
| -5% i.e. I.D.V |
39,140 |
| Own Damage on Basic amt (1.43% on IDV) |
560 |
| Third Party Basic (fixed) |
350 |
| Compulsory PA to Owner driver |
0 |
| Total |
911 |
| S.tax on total amount (12.24%) |
111 |
| G.total |
1,022 |
|
| Documentation and Processing charges |
Rs 300/- is charged per document
Processing charge will be @ 2% of the finance amount.
Both these charges attract service tax @ 12.24%
(Subject to change from time to time) |
|
