Tuesday, September 15, 2009

Now, registration of vehicles a costly affair

Now, registration of vehicles a costly affair

Raghavendra RFirst Published : 14 Sep 2009 03:59:00 AM ISTLast Updated : 14 Sep 2009 07:27:20 AM IST
BANGALORE: The state transport department in its website has listed out procedures, fees and tax payable to the RTO for registration of new motor vehicles, in a bid to bring in transparency in the transactions of Regional Transport Office (RTO) services and make things hassle-free.
However, this initiative by the department seems to be not serving the purpose as people purchasing vehicles end up paying more than they should to register their vehicles, as automobile dealers and registering authorities are hand in glove to shovel through vehicle registration.
Under RTO services, the website clearly states the various procedures to register a new vehicle by getting temporary or permanent registration number. Despite mentioning details, people are being swindled under the cover of hypothecation issue (mortgage) and Motor Vehicles Act (MVA), as the MVA states that no vehicle can be brought on the road without a registration number.
For registration, two-wheeler dealers charge between Rs 660 and Rs 2,000, depending on the make of the vehicle, while four-wheeler dealers charge between Rs 3,750 and Rs 7,000. The registration charges collected by the dealer include smart card and hypothecation fees. As per the road transport authority, the two-wheeler registration fee is Rs 60, and Rs 200 for four-wheeler. In the price list, the dealers mention the registration charges by various names like handling charges or service charges or incidental charges.
A sales manager at Hyundai told Express that the incidental charges or handling charges vary depending on the vehicle’s model. “This includes registration fee and number plate along with few hidden charges like fuel for the vehicle, pre-delivery inspection and vehicle washing,” he said.
The manager said that as the investment for the automobile showrooms is huge and margin of profit thin, the extra expenses showrooms incur is passed on to the customer. “Apart from RTO fees, officials should be given bribe for a hassle-free day when the vehicle goes for the registration,” he added. A sales manager at Maruti said that if the vehicle is purchased by paying full cash, the customer will have the option of getting registration done by the RTO.
The dealers do not allow customers to get their vehicles registered by themselves on the pretext of the MVA and demand no-objection certificate from the bank where the vehicle is hypothecated. Also, they refuse to hand over application form, sale certificate and other documents to the customer.


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