New car buying rule favors customers but poses challenges for dealers.

Car dealers will be responsible for fitting high security registration plates (HSRP) on vehicles at the time of delivery, a task earlier handled by regional transport offices (RTOs). Although this is convenient for buyers, dealers are concerned about potential conflicts and administrative challenges. The new system puts the burden on dealers to complete tasks like document verification, RTO tax, municipal tax and insurance, which were earlier managed by RTOs.

Dealers argue that the administrative processes involved could take up to a week, requiring prompt action. They are concerned about possible errors during document verification or other processes, which could result in dealers facing punishment, including having their trading certificate suspended for a month. Dealers believe that the provision of imprisonment in case of document verification errors is disproportionate and unfair, as they lack the tools available with RTOs for verification of government documents.

Dealers are also unsure how RTOs will handle pending work during the transition to online document processing. However, a top RTO official said the government has given enough time to dealers to prepare and agencies have been empaneled to assist in these tasks. According to the official, if dealers complete all the tax and registration processes on time, they will be able to deliver vehicles to customers on time without any problem.

As a result, buyers planning to receive their car on special occasions such as birthdays or anniversaries are advised to start completing their paperwork well in advance.

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