To boost spending and make the economy work better, the Indian government has announced big changes to the Goods and Services Tax (GST) system. GST 2.0 got rid of the four-tier GST framework that had rates of 5%, 12%, 18%, and 28%. Now there are only two main rates: 5% for necessities and 18% for other goods. The government has also developed a new 40% slab called the “de-merit” slab, which includes sin products and luxury goods. The biggest rippling effect is being noticed in the used car market, especially in a place like Delhi NCR, where there is a lot of demand. This new playbook means that millions of people who purchase and sell used car in Delhi need to rethink their strategies for everything from pricing to negotiating.
In this blog, we will discuss how new GST rules are affecting used car prices in Delhi and why the timing is crucial for anyone looking for a used car in Delhi.
Decrease in New Car Price Give a Domino Effect on Used Car Price
Used car markets face a fast decline in demand due to a decrease in the new car prices. The GST rates shift on small cars from 28% to 18% is a game changer. This suddenly makes a new vehicle more affordable, especially for first-time buyers who were previously set on purchasing a used car in Delhi.
In the same way, larger cars and SUVs that used to have a tax rate of up to 50% with cess now only had to pay a flat 40% GST. This makes the tax system easier to understand, and in many cases, it also lowers prices slightly in the luxury class. The immediate effect is that the price difference between new and used cars is getting less, which has put a lot of pressure on the used car industry to change.
Also read: Recent GST Additions You Must Know Before Buying a Second-Hand Car in 2025
GST Add-ons for Used Cars–Real Facts
The truth is that there is no GST on used car sales or purchases if it is done between two individuals. The GST on used cars is applicable only if they are sold by registered dealers. Also, the GST will only be calculated at 18% on the profit margin.
So, if the GST rule on used cars hasn’t changed, why are prices in Delhi fluctuating? The answer lies in the fundamental change in the price of a new car. To keep the price difference competitive, the resale value of older models must go down when new cars get cheaper.
The Immediate Impact on the Delhi Used Car Market
Delhi’s used car market is very large and dynamic. And changes in GST affect it the most. Let’s see how GST add-ons are affecting different segments.
Small Cars
This part is under the most stress right now. Because new automobiles like the Maruti Swift, Hyundai Grand i10 Nios, and Tata Tiago are now much cheaper, people are less interested in buying secondhand cars. To fight this, used car platforms and dealers in Delhi NCR are lowering prices on select models by up to ₹2 lakh. This gives consumers a wonderful chance to obtain a great deal on a used car that is still in great shape.
SUVs
The effect on these groups is less dramatic but still clear. New SUVs are also getting a price decrease, although the price point is still very high. This makes the pre-owned SUV market, which is very popular in Delhi, an even better deal. People can acquire a used SUV with a lot of features for a lot less money, and the price difference is still big enough to make the purchase worthwhile.
High-End Cars
The market for used luxury cars in Delhi NCR is likely to do well. Even though there is a new 40% GST on new luxury cars, buying a brand-new Mercedes or BMW is still a big deal. The big price disparity between new and used luxury cars is still there, so for many people who want to buy one, the only option is to acquire a used one.
Also read: How GST Impacts Used Car Prices in Delhi NCR
Navigating the New Approach for Buyers and Sellers of Used Car in Delhi
For Buyers:
This is the golden opportunity for buyers. You can save a lot of money by making a smart move. Compare the price post GST. Check out the pricing of new cars after GST and the prices of used cars in Delhi to make a sensible choice.
For Sellers:
Time is really crucial. If you wish to sell your little car, its value has undoubtedly gone down. It is best to use a professional tool that can provide you with a fair, data-driven value that takes into consideration how the market is developing. If you wait too long, prices can decrease even more when they reach a lower level.
HaloTrades: Your Reliable Partner in the GST Era
In a time of financial instability, it’s more crucial than ever to have a clear and reliable platform. This is what makes HaloTrades different. HaloTrades uses data to set pricing that is fair and clear and changes quickly when the market changes. This is not the same as how regular dealers work, who may take their time to change. HaloTrades gives both sides a straightforward, tech-driven way to deal with the new GST situation with confidence. We got rid of the old, confusing techniques and replaced them with a system built on trust and accuracy. This is exactly what the Delhi NCR industry needs right now. So, utilize HaloTrades to find a used automobile in Delhi and make the most of this important moment. List your car for faster sale of used cars in Delhi. To know more about our services, visit our website or directly contact us.
FAQs
Q: What are the 2025 GST add-ons affecting car prices?
The new GST 2.0 framework, which has two primary rates (5% and 18%) and a new 40% “de-merit” slab for luxury commodities, replaces the old four-tier system. The tax on small new cars has gone down from 28% to 18%, and the levy on bigger SUVs has gone down from up to 50% to a flat 40%.
Q: How much extra should buyers expect to pay due to GST add-ons?
The buyers shouldn’t expect to spend more. Instead, the new GST laws have made new cars cheaper. This means that used cars have to lower their pricing to be competitive.
Q: Are these GST changes permanent?
The latest modifications to the GST rate are seen as a lasting policy move and a structural reform, not a temporary fix. These changes make the tax system easier to understand and are part of the “GST 2.0” project to make the system work better and be more open.