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Old 15th December 2011, 21:28   #1
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Default Mahindra XUV500 Exploitation : FULL payment required with no promise of delivery date

After the 'insurance' tactics by mahindra dealers, here comes another masterpiece.

Sterling motors, gurgaon is demanding full price of XUV without any committed date ( its would take approx 10-15 days from payment to delivery). They say that M & M has adopted this policy for XUV so that timely delivery on fifo basis can be made.
I escalated this issue to mahindra customer care and today I received a call from them and they say that the dealer is right in demanding this. When asked about the logic of this policy, he said that the same policy is followed by audi and BMW (I dont know whether its true or not).

So I am really clueless what Mahindra people are smoking.

I know that they have a winner in hand but how can they justify comparing XUV to beemers and audis.

Mods please change the thread title to "booked XUV - Get ready to be XPLOITED" . I have written this post on the Iphone and cant figure the setting to edit the title.

Last edited by nipun dhingra : 15th December 2011 at 21:32.
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Old 15th December 2011, 21:31   #2
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Default Re: Be reqdy to get xploited to get xuv

Just tweet this to Anand Mahindra - have seen him question his team when people tweeted that the dealers where demanding a lac or two more for faster delivery
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Old 15th December 2011, 21:57   #3
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Angry Re: Be ready to get xploited to get xuv

Whats that with the goose that lays golden eggs?

These unscrupulous dealers behave like commission driven salesmen. A thousand in hand today is better than a potential million for them. Thats the same sad story across the board for most of the Indian corporates these days and their franchisees. A Quick Buck is more valuable and definitely looks good on your balance sheet than building a good relationship with a customer; not to mention the potential 'word-of-mouth' clientele that customer can bring if he 'feels' he is offered prompt service.

Coming back to this issue, Why does this remind me of the Nano Scheme that TATA cooked up alongwith SBI? Tata to Aam Admi: 'We dont know if and when you will get your Nano sir, what with Mamta pushing us around. But you, an honest man, must pay your monthly interest and the EMI from today for the car that will potentially and eventually be yours anytime between tomorrow at 9 and next year. You have a good one now!'

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Last edited by n_aditya : 16th December 2011 at 10:42. Reason: abusive word edited
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Old 15th December 2011, 22:07   #4
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Default Re: Be reqdy to get xploited to get xuv

Better get it verified from the horse's mouth.

I am pretty sure this is some shady ploy from the dealer itself and not the manufacturer.
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Old 15th December 2011, 22:07   #5
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If it is true, it is one of the most ridiculous thing I have seen in automotive world. Common Mahindra, don't get too greedy here. For folks going on finance route, How will bank release the loan payment to dealer without the car details and even if bank releases loan amount, poor customers will have to bear interest without having car.
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Old 15th December 2011, 22:21   #6
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Default Re: Be reqdy to get xploited to get xuv

This is a clear case of success getting to their heads.

If it's a dealer thing, the big-wigs at Mahindra must round them up and give them a hiding. However, if the company has taken this step, well, it's only a matter of time before the XUV settles to a simmer after the initial hoopla around it.

I'd heard that the XUV's price-tag is merely introductory.

So much for it being chosen the car of the year then, huh?
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Old 15th December 2011, 23:08   #7
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I have the following proofs with me.
A) Emails from sterling motors
B) call from deepak kapoor who claimed to be representing customer care m&m. We had a 5-6 minutes conversation and he promised he will email me about mahindra's new policy for xuv which he has not done yet.

I have already forwarded emails sent by sterling motors to sanjoy gupta (he is a senior officer handling customer's complaints) and customer care m&m. No written redressal provided yet.

This is really frustating. :(
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Old 16th December 2011, 00:45   #8
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Default Re: Be reqdy to get xploited to get xuv

Quote:
Originally Posted by nipun dhingra View Post
I have the following proofs with me.
A) Emails from sterling motors
B) call from deepak kapoor who claimed to be representing customer care m&m. We had a 5-6 minutes conversation and he promised he will email me about mahindra's new policy for xuv which he has not done yet.

I have already forwarded emails sent by sterling motors to sanjoy gupta (he is a senior officer handling customer's complaints) and customer care m&m. No written redressal provided yet.

This is really frustating. :(
Put them (the emails) up here. Also did you check with any other dealers in Gurgaon/Delhi? If this is common across other places too, then probably the manufacturer is behind this.

Quote:
Originally Posted by normally_crazy View Post
Just tweet this to Anand Mahindra - have seen him question his team when people tweeted that the dealers where demanding a lac or two more for faster delivery
+1 to this. Have tweeted it to @AM, will update if there's a response. Generally he does respond to most tweets. Have shared this thread too.

Quote:
@anandmahindra M&M Ggn dealer(s) are demanding full payment for XUV500 without any commitment date - Is this right? RT bit.ly/rQIISk

Last edited by ninjatalli : 16th December 2011 at 00:46.
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Old 16th December 2011, 03:30   #9
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Default Re: Be ready to get exploited to Buy a Mahindra XUV 500

Yes Deepak Kapoor heads sales Delhi region. When this was not mentioned when you booked how can they change the contract without your consent ?
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Old 16th December 2011, 05:55   #10
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Default Re: Be ready to get exploited to Buy a Mahindra XUV 500

May i suggest (although this might sound a very drastic measure), to walk away from the deal. We customers in India are quiet lenient and hence manufacturers or dealers occasionally take customers for ride.

As a customer you have taken multiple test drives and finally chosen a car you like, walking away does sound like start over again, but remember unless customers do that this will keep going on and on. This high headedness needs to be pushed back. They think one customer going away will not matter, but when many do it they would notice it and come down.

I walked away from a manufacturer after a decent debate on price rise etc where in i felt like i had to buy a car at gunpoint hence walked away. On XUV500 try going to some other dealer, escalate to manufacturer or AM and see what happens, but be mentally ready to walk away.

Last edited by mayankjha1806 : 16th December 2011 at 05:57.
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Old 16th December 2011, 07:48   #11
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Default Re: Be ready to get exploited to Buy a Mahindra XUV 500

Wonder why there is so much hysteria for making a payment early? Clearly Mahindra want to weed out speculators/brokers. They want genuine customer bookings and considering their limited production capacity it is good to weed out opportunists. As far as I understand M&M does have a system where the indicative factory dispatch date is informed (not sure if this is still in place). Also at the current price point I would like to imagine the M&M would like to be as cost efficient as possible. By taking full money they will reduce the interest cost.

Banks will disburse your money and you start your EMI's early. The positive side is that you will complete the loans earlier. Of course there will some who will be greatly inconvenienced like those who are selling their existing cars to fund the margin money.

As long as the delivery schedule is known, I do not see this as exploitation as your interest outgo would be the same irrespective if the car is delivered today or next month.

Cheers

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Old 16th December 2011, 09:15   #12
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Default Re: Be ready to get exploited to Buy a Mahindra XUV 500

Agree that M&M wants to kept out speculators. But it should not be at the expense of genuine buyers. If the dealers/M&M want full payment, then they should also pay interest (like Tata did for Nano).
Simple calculation at very conservative rate of interest of 6% PA for amount of 15 lacs shows that you will be loosing 7,500 per month on interest. Of course this is opportunity cost. It can be more.
If the funding is through bank loan, then things will be different and it should not matter much if the delivery date is assured. But is frustrating to pay EMIs not knowing when the vehicle will be delivered.
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Old 16th December 2011, 10:19   #13
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Default Re: Be ready to get exploited to Buy a Mahindra XUV 500

Quote:
Originally Posted by KPS View Post
Wonder why there is so much hysteria for making a payment early? Clearly Mahindra want to weed out speculators/brokers. They want genuine customer bookings and considering their limited production capacity it is good to weed out opportunists. As far as I understand M&M does have a system where the indicative factory dispatch date is informed (not sure if this is still in place). Also at the current price point I would like to imagine the M&M would like to be as cost efficient as possible. By taking full money they will reduce the interest cost.

Banks will disburse your money and you start your EMI's early. The positive side is that you will complete the loans earlier. Of course there will some who will be greatly inconvenienced like those who are selling their existing cars to fund the margin money.

As long as the delivery schedule is known, I do not see this as exploitation as your interest outgo would be the same irrespective if the car is delivered today or next month.

Cheers

KPS

one, like the OP said, there's no date.

two, its not a super premium product, being bought exclusivley by people who usually carry that amount of change.Its a concious decision on most parts to sell an existing car and get this.
even if its not selling the old one, but just a loan, I would be hell on toast for people who know me during the months when i am paying EMIs, and dont have the XUV.
In fact, i probably wouldnt have any friends left to ride with me by the time the car comes.


three, its like going pre-91, to have the maker say when the car will will be delivered, but you have got to give the money right now.Or even to to say delivery is in march 2012, but deposit the full amount in dec 2011.

four, I honestly did not see the silver lining there, of saving on interest.
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Old 16th December 2011, 11:02   #14
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Default Re: Be ready to get exploited to Buy a Mahindra XUV 500

Quote:
Originally Posted by nipun dhingra View Post
Sterling motors, gurgaon is demanding full price of XUV without any committed date ( its would take approx 10-15 days from payment to delivery).
I don't see any issue ?!!
The date of delivery is not indefinite. Wonder why some are presuming Mar 12 when the person who has started this thread has clearly mentioned 10-15 days !!!
As the car is alloted the moment it gets off the assembly line, the dealers have to ensure the payment formalities are completed in time.
In case of Gurgaon, it will take the car about a 5 - 7 days to come to the yard of the dealer. Then another 5 - 7 days for PDI, passing, Rto etc (including weekends and holidays)
If the loan takes long to get sanctioned / buyer dilly dallys his decision / wants the car in 2012 (main issue now) / or any such issue, the dealer has to keep the car in his yard at his responsibility leading to logistical hassles.
Also, you cannot ignore impulse buyers / speculators / brokers who decide to cancel the bookings last minute adding to the dealers woes.
As far as I know payment of any car has to be made in full before the paperwork is started.
I have gone through all this while buying my XUV and see nothing wrong in making the entire payment a week or 2 before delivery
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Old 16th December 2011, 11:08   #15
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Default Re: Be ready to get exploited to Buy a Mahindra XUV 500

Quote:
Originally Posted by bikefreak View Post
I don't see any issue ?!!
The date of delivery is not indefinite. Wonder why some are presuming Mar 12 when the person who has started this thread has clearly mentioned 10-15 days !!!
As the car is alloted the moment it gets off the assembly line, the dealers have to ensure the payment formalities are completed in time.
In case of Gurgaon, it will take the car about a 5 - 7 days to come to the yard of the dealer. Then another 5 - 7 days for PDI, passing, Rto etc (including weekends and holidays)
If the loan takes long to get sanctioned / buyer dilly dallys his decision / wants the car in 2012 (main issue now) / or any such issue, the dealer has to keep the car in his yard at his responsibility leading to logistical hassles.
Also, you cannot ignore impulse buyers / speculators / brokers who decide to cancel the bookings last minute adding to the dealers woes.
As far as I know payment of any car has to be made in full before the paperwork is started.
I have gone through all this while buying my XUV and see nothing wrong in making the entire payment a week or 2 before delivery
when such things happens with dealers(albeit hyundai in this case, but still)
http://www.team-bhp.com/forum/indian...c-crdi-sx.html

one cant help but be wary to avoid being a case study for M&M as well.
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