GST meeting again delayed and scheduled for today
Also there are opposition from other ministers citing that it will affect auto industry
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This truly shows how karnataka has been at the forefront in creating conducive environment to adopt innovative tech and industries taking on bigger lobbies
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Looks like the prices will come down in August!. GST council approved the reduction to 5%ā¦
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Yay!! Expecting a price drop of around 9000ā¹ for ather 450
Made a comparison between Buy Vs. Loan Vs. Lease. Based on my calculations, leasing the seems to be a better option. Let me know what you think. Also write to me if you have more accurate values for insurance/maintenance etc.
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Interest on loan is 0 for income tax payers.
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Pardon my ignorance but can you guys let me know what tax deduction you are talking about? Why would interest on a vehicle loan get any tax benefit?
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@hunt4dj The 1.5 lakhs is not on vehicle price, the interest you pay for the loan amount. I have purchased by loan for a tenure of 12 months and interest on loan will be around 10k This 10k is exempt from the payable tax.
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Shit. Anyways that was just an excuse for me. But thanks for pointing out ā¦ill lease then. Also, removed my misleading post 
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@hemanth.anand As per the new budget, for any EV bought on Loan, interest part is tax deductibleā¦ Just like how you do for Home Loanā¦
During ITR, you get the interest certificate from bank / financial institution and declare the interest part.
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Basically you get subsidized loanā¦ If you are getting loan on 10% interest rate, then because of tax exemption now you are effectively getting at 7% (assuming you are in 30% slab).
At 7% rate, even if I have full cash, I would still go for loan because it does not hurt.
Note: I used 10% as an example, but for Ather 450, Hero FinCorp gives loan at 15%, so post exemption, it becomes 10.5% effectively.
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Thanks. Itās the new section 80EEB.
Let me calculate the benefit by considering the above example by @gpbhattar (60K downpayment for a loan of 36months)
Iāll take the interest by Herofincorp as mentioned in Ather website (15.3% reducing rate)
The total interest part will be 13,698 and the maximum tax savings (30% tax slab) possible over a period of 3 financial years (or 4) is 4,109. (2,793 for 20% bracket and 685 for 5%)
If I consider the lowest possible down payment of 23K, the loan amount will be 90,715.
The interest part for a 3-year loan for this case will be 22,974 and the maximum tax savings (30% tax slab) possible over a period of 3 financial years (or 4) is 6,892 (4,595 for 20% bracket and 1,148 for 5%)
If I consider the same lowest possible down payment of 23K, but for a longer 5yr loan tenure
The loan amount will be 90,715 and the interest part will be 38,486 (14.9% reducing rate). The maximum tax savings (30% tax slab) possible over a period of 5 financial years (or 6) is 11,546 (7,697 for 20% bracket and 1,924 for 5%)
Overall Iād not consider this as a big benefit especially for Ather. But a benefit nonetheless.
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Love the Analysis Hemanth. No wonder you are the Moderator 
On a side note can someone create a new comparison sheet. I know i should be ashamed being a fin analyst to ask someone else to do it but guess those are the perks of being a in a forum
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Yeah for two wheelers especially when the loan rate is 15.3%, not so attractive.
Good for people buying EV car like Kona Electric where it makes it so affordable given car loans are cheaper below 10%
Trueā¦more benefecial for cars than two-wheelers.
Currently eVerito will get the best of all the benefits (followed by Tigor EV).
The interest on loan can reach 1.5 lakhs in any one of the years in the loan period
What Kona gains by section 80EEB is lost in the inapplicable FAME-II subsidy (since Kona has a ex-factory price of more than 15lakhs it will not get FAME-II benefit)
Fame 2 is not applicable for personal cars anymore. Itās only for commercial cars like fleet owners.
And fleet owners are not main market for Kona electric.
This was a surprise move.
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A terrible move, cause it looks like Gov doesnāt want people to buy electric cars.
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Not really. Budget for subsidies and infrastructure under FAME II is ā¹10,000 crores for 2019-2022. Itās more than 10 times of FAME I thatās launched in 2015. Out of this they are subsidizing ~7,000 buses, 1 million 2 wheelers, 0.5 million 3 wheelers, 55,000 4 wheelers. They are also creating charging infrastructure with this.
When the no of vehicles is limited itās better if they are fleet cars rather than private ones which will be used very less relatively. Same with subsidizing public buses, 3 wheelers. By the time FAME II ends in 2022, we will see price parity in 2/3 wheelers with petrol/diesel models, price reduction in buses and decent no of models at low prices (ā¹10lakh or less) in cars.
Meanwhile private cars continue to attract just 5% GST compared to 29%-50% on petroleum/ diesel ones and no or less road tax from many states, loan interest tax exemption.
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Oh right.
Definitely, as lithium batteries will get cheaper with local production and with more efficient technology and government incentives to factories.
Hey Guys,
I know this has been discussed again and again, but after reading the thread for hours couldnāt come up with any decision, have a couple of questions
- Is the insurance covered in lease plan for the 3 yrs tenure a comprehensive one or third party?
- Has anyone done the math for the current pricing after the GST reduction. Because if i check now, the monthly installment is increased a little and the down payment reduced for the 36 months 60k down payment option. And i just checked an GoDigit site that the insurance costs around INR 4700 for 1 year.
Any suggestions and help is appreciated