Following the flash sale that shook the country last week, of the BSIII motorcycles and scooters, we decided to quench our curiosity on how the sale really proceeded from the dealers’ point of view. This was third in our priority list after clearing the doubts and frequently asked questions on the difference between BS3 and BS4, and what is AHO and what are its major drawbacks.
Here’s the transcript of RushLane’s very blunt conversation with a dealer who wishes to remain anonymous.
1. Why did this suddenly become a big thing – the discontinuation of BS3 vehicles in just a matter of 2-3 days?
Answer: This wasn’t a sudden thing. Many dealers knew about it beforehand. But they chose to ignore as most of them were of the opinion that the government will not ban sales. During the previous transitions (BS2 to BS3), the government had allowed the sale of BS2 vehicles. Almost everyone thought the same will happen this time, but then the Supreme Court decided to ban BS3 vehicles.
2. When did the automobile manufacturers intimate about this BS3 ban? Did they tell only in last minute?
Answer: The manufacturers had notified about the change well in advance, but they continued to send BS3 vehicles. We did not have any choice, but to continue buying these vehicles.
3. Are the discounts borne by the dealers or the respective auto company?
Answer: They will be borne by the company.
4. Are there still some leftover stock of the banned BS3 vehicles?
Answer: Yes. There were about 8 lakh vehicles which were in the stock across the country. Not all have been sold. Some have been taken back by the company, but some dealers continue to sell the BS3 stock even today.
5. Will there be any difficulty at the RTO in registering the vehicles sold on March 31?
Answer: As long as the vehicle is invoiced before 31st march, there should be no trouble.
6. Can you backdate the invoice and continue the sales after the deadline of 31 March, 2017?
Answer: No we cannot.
7. How many days will it take to register all the BS3 vehicles that you’ve sold till 31 March?
Answer: Depends on the RTO. Usually it takes about a week’s time.
8. Was this a profit or a loss to your dealership?
Answer: CA will be a good person to talk to on this.
9. Did the customers pay by cash or by any other payment method?
Answer: We accepted cash, online transfer and cheque too. No easy finance options were given.
10. Did you take full cash to making invoice?
Answer: Answered above. Yes, full amount was taken in either of the three modes.
11. Were the customers able to get bank loan for this sudden purchase?
Answer: Financing wasn’t available. Only people who could pay fully were given the vehicles.
12. Did you give them your own finance option (if available)?
It appears that the dealers did not suffer any financial loss, so this kindles a new question – what was the motive behind waiting for the last date and issuing the massive discount?
Why did almost all of the auto manufacturers had good amount of leftovers which were sold at an unprecedented discount at the last moment of the financial year?
The RTO in Pune registered 3,112 motorcycles and scooters till 9 PM on Friday (31 March, 2017) as opposed to the average of 488 two-wheelers a day in the first eleven months of the 2016-17 fiscal.
So, for the question as the title, you cannot buy a brand new BS3 vehicle now, but our sources tell us that the BS3 vehicles are still being sold. If you are wondering how, then the trick is simple. Those dealers who were left with BS3 stock on 31st March, bought those vehicles themselves. These dealers are now selling these vehicles to customers at discounted rate, plus 1 year free insurance.
Legally, the dealer is not doing anything wrong. Though he is selling a brand new BS3 vehicle post 31st March, on paper is selling a second hand vehicle. Win-win situation for both, dealer and the customer. You may find them at the dealerships or probably at online marketplaces such as OLX and Quikr.