Best Time to Buy a Car in India: 3 Periods With the Biggest Discounts

Most people buy during Diwali or other festivals. But festive demand is high, so dealers have less reason to discount. The real leverage comes when the books are closing.

Each period has a catch, though. A car bought in December is registered as that year's model, which costs you at resale. Here is how to choose.

1. End of September: half-year closing

India's financial year runs April to March, so September 30 closes the first half. Manufacturers and dealers push extra offers to hit half-yearly targets.

Who gains most: business buyers. If the car is put to business use by the end of September, you can claim full depreciation for that financial year (see the business section below).

The catch: late September often overlaps with Navratri and pre-Diwali bookings. When demand is high, discounts shrink, so ask the dealer directly how far they are from this month's target.

Government changes can also hit this window. GST on small cars, for example, was cut from 28% to 18% from September 22, 2025. Check recent news before you buy.

2. End of December: year-end clearance

December usually brings the deepest discounts of the three. On January 1, every unsold car on the lot becomes "last year's model" and gets harder to sell, so dealers rush to clear stock.

In December 2025, for example, Maruti Suzuki offered year-end discounts of up to ₹2.10 lakh on some models. Many brands also raise prices in January, which makes December pricing even better value.

The hidden cost: resale value

A car bought in December 2025 is registered as a 2025 model; buy it a week later in January and it is a 2026 model. When you sell five years later, your car counts as a year older.

Who it suits: people who will keep the car eight to ten years or more, where a one-year gap barely matters and the discount is money in hand today. If you plan to sell in three or four years, check whether the discount beats the resale loss.

Reality check: discount sizes vary year to year. After the 2025 GST cut, dealers had cleared old stock early, so December 2025 discounts were smaller than in 2024.

3. End of March: financial year closing

March 31 ends the financial year, when manufacturers close their annual books. Dealers earn extra incentives for volume, and part of that reaches buyers as discounts.

The big advantage: a car bought in March is registered as the current calendar year's model, so there is no December-style resale penalty. You get a discount and a fresh model year.

Watch out: a March car may have been manufactured the previous November or December. Check the VIN before registration, and ask whether a price increase or rule change takes effect on April 1.

Side-by-side comparison

Simple rule: keeping it 8+ years, buy in December. Selling in a few years, buy in March. Buying for business, buy by September.

Buying for business: the 180-day rule

Salaried individuals buying a car for personal use cannot claim depreciation. This section applies only to businesses, professionals and taxi or travel operators.

• The rule: if the car is used for business for 180 days or more in the financial year, you get full depreciation; under 180 days, only half for that year.
• The rate: the standard depreciation rate for cars is 15% on the written-down value.
• New law, same rule: the Income-tax Act, 2025 replaced the 1961 Act from April 1, 2026, and keeps the 180-day rule.
• The detail most people miss: what counts is the date the car is put to use, not the payment date. Invoice on September 30 but take delivery in late October, and you may lose the full claim.

Example (₹10 lakh car): put to use in September, first-year depreciation is ₹1,50,000. Put to use in November, it is ₹75,000.

Confirm the numbers for your situation with your CA.

How to negotiate in these windows

1. Go in the last week of the month. When a dealer is a few cars short of target, the sales manager can approve bigger discounts.
2. Get quotes from two or three dealers. Dealers of the same brand offer different deals; check neighbouring cities too.
3. Ask for the on-road price itemised in writing. Ex-showroom, road tax, insurance, registration and accessories, each listed separately.
4. Separate the types of discount. Cash discount, exchange bonus, corporate offer, free accessories, extended warranty. Cash discount is the one that counts most.
5. Compare insurance outside. Check the dealer's insurance quote against online quotes and negotiate.
6. Refuse accessories you don't need and vague "handling charges".
7. Don't be rushed. "Today only" offers usually last until month-end.

Road tax: the biggest variable by state

Each state sets its own road tax, usually a one-time percentage of the car's price, with higher rates for costlier cars. Check your state's current rates with your RTO or the Parivahan portal.

As an example, Tamil Nadu's rates since November 9, 2023:

Tip for every state: most states use price slabs like these. A variant just above a slab line can push your tax rate up sharply; in Tamil Nadu, crossing ₹10 lakh moves it from 13% to 18%. Check your state's slabs and work out whether one variant lower saves more than you lose in features. Many states also give electric cars road tax concessions.

Check for old stock before you sign

Discount season is also when old stock gets sold. Once the car is registered in your name there is little you can do, so check these first:

• Manufacturing date: shown on the VIN plate and Form 22. If the car is several months old, ask for an extra discount or a newer unit.
• Warranty start date: some warranties may run from the manufacturing date, so old stock means less cover.
• Tyre dates: the four-digit DOT code on the sidewall shows the week and year of manufacture; new-car tyres should be recent.
• Odometer, scratches, repairs: look for signs it was used as a demo car.
• Upcoming model change: if a facelift or new generation is due within months, the outgoing model loses resale value faster, so the discount should be bigger.

Pre-delivery inspection (PDI): you have the right to inspect the car at the dealer's stockyard before registration. Ask for it.

Final word

The right time to buy a car is when the books close, not when the festival lights go up. December for long-term owners, March for those who care about resale, September for business buyers. Whatever the month, check the manufacturing date and every line of the on-road price.

General information only. Discounts vary by brand, dealer and city. Consult a CA for tax decisions.