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Old 20th March 2016, 23:31   #1
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Default Taking favours from a dealership for giving them business

This is my dilemma. Should I demand my pound of flesh from the dealer for giving him business?

I have always been asked for advice and recommendations from friends when they were buying cars. Since I bought my Ford Aspire, I have built a good rapport with the dealership. And with first hand experience of Ford, I have also convinced a couple of friends to buy a Ford. This was not just recommending the car, but arranging for the test drive, negotiating with the dealer, getting faster delivery, etc. - the cost for me being my time. I'm sure a lot of BHPians do the same.

In this transaction the buyer gets the car, the dealer gets his money, the govt. gets its taxes - should I get something? I'm thinking of asking for accessories for my car..

Would I be right in asking for it? Opinions and suggestions are welcome.
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Old 20th March 2016, 23:39   #2
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Of course you can ask your share
Puchne me kya jaata hai!!?

I had too had referred my friend to buy a Zest at the same dealer I had purchased.

Though I didn't ask anything, the dealer gave me couple of PVR tickets!
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Old 21st March 2016, 00:17   #3
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Default re: Taking favours from a dealership for giving them business

Quote:
Originally Posted by samaspire View Post
...
In this transaction the buyer gets the car, the dealer gets his money, the govt. gets its taxes - should I get something? I'm thinking of asking for accessories for my car..
You can as well join as salesman.. and get your cut out of every car sold.

Sorry for being blunt, but it is not right to expect something from every action. It is especially not right to put a price on the help you offered your friends.
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Old 21st March 2016, 00:23   #4
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Default re: Taking favours from a dealership for giving them business

Well, it's not illegal. But it will take a lot from you to give unbiased advice once there is a monetary benefit angle attached to a transaction.

If you do go ahead, please ensure that you are transparent about the benefits you would derive from the sale to everyone that you get involved in the buying process.
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Old 21st March 2016, 00:43   #5
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Default re: Taking favours from a dealership for giving them business

Quote:
Originally Posted by samaspire View Post
...In this transaction the buyer gets the car, the dealer gets his money, the govt. gets its taxes - should I get something? I'm thinking of asking for accessories for my car.

Would I be right in asking for it? Opinions and suggestions are welcome.
I'd say do NOT explicitly ask for anything. If a bunch of you are buying car, negotiate for a good price which will benefit all. If you are buying another car, negotiate for a better price / accessories.

Personally, I wouldn't expect any extra direct / indirect monetary benefit if I am helping out a friend / relative.

Edit:
Quote:
...If you do go ahead, please ensure that you are transparent about the benefits you would derive from the sale to everyone that you get involved in the buying process.
This is a fair way to do it. But be assured, the moment you make this disclaimer, the goodwill gesture is gone for good. The perception of your (honest) intention takes a backseat to business benefits!

Last edited by swiftnfurious : 21st March 2016 at 00:49. Reason: Re-phrased the last line
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Old 21st March 2016, 00:47   #6
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Default re: Taking favours from a dealership for giving them business

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If you do go ahead, please ensure that you are transparent about the benefits you would derive from the sale to everyone that you get involved in the buying process.
That is a given. This idea was suggested by my cousin for whom I'm helping buy a car. So the deal would be pretty transparent.

And I believe I can be unbiased with my advice. Even in my business, I often send potential customers to someone else, if I think it would be cheaper for them, there. Does not make business sense. But that's how I am.
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Old 21st March 2016, 00:53   #7
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Default re: Taking favours from a dealership for giving them business

I have helped few friends purchase their cars and I always ask for better deal for that friend himself it can be cash discount on his car or more accessories, never anything for myself.
Its best to pass any favour from dealership to your friend. Trust me if in future your friend get to know some better deal from some other dealership he will not say it but will always believe you took him to known dealership just so that you can get those favours for yourself and was not thinking in his best interest.

Moral of story is that its fine if dealership is not cutting any discounts from your friends and passing them to you as favours.

Last edited by karansm4u : 21st March 2016 at 00:58.
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Old 21st March 2016, 10:13   #8
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Quote:
Originally Posted by samaspire View Post
Would I be right in asking for it? Opinions and suggestions are welcome.
There is nothing wrong in getting benefits for referring a customer. This is just like reference scheme that dealers run once in a while. Though you need to be sure that you are suggesting the right car to your friends based on their requirements

Quote:
Originally Posted by dhanushs View Post
You can as well join as salesman.. and get your cut out of every car sold.

Sorry for being blunt, but it is not right to expect something from every action. It is especially not right to put a price on the help you offered your friends.
Thats harsh, he isn't taking benefits from his friends. He is giving additional; business to the dealer and expects benefits in return from the dealer which is fair
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Old 21st March 2016, 11:01   #9
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Default re: Taking favours from a dealership for giving them business

There are several reasons I wouldn't want anything for such a thing.

One of the relevant reasons would be, it would make me not impartial and independent any more.

The minute you start getting favours, you have lost your integrity as far as I would be concerned.

So to some earlier comments. Enjoy helping your friends, that should be enough.

Jeroen
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Old 21st March 2016, 11:15   #10
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Default re: Taking favours from a dealership for giving them business

Noting wrong in getting something from the dealer since he is getting benefited, but please make sure that the cost of your gift from dealer is not passed on to the buyer through some other means by the dealer.

When I brought my Unicorn, I got friendly with the salesman (was calling him every alternate day till I get the delivery) and then when couple of my friends wanted to buy Unicorn, I had taken them there and have used my friendship with the sales team to get them good finance deals and quick delivery - in fact, that was my payout from the dealer and we all were happy.

--Anoop
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Old 21st March 2016, 11:30   #11
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Default re: Taking favours from a dealership for giving them business

If you have not coerced your friends into the decision by pushing the product and glossing over its shortcomings, I suppose your conscience should be clear. And if you are not asking the dealers to give you freebies meant for them, there again is no conflict of interest.
You could happily squeeze the dealer for benefits.
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Old 21st March 2016, 11:37   #12
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Default re: Taking favours from a dealership for giving them business

If & when you do, please be sure not to ever push that brand or dealership on Team-BHP. Thanks!

Quote:
Originally Posted by samaspire View Post
In this transaction the buyer gets the car, the dealer gets his money, the govt. gets its taxes - should I get something?
Strengthening a relationship? There's a reason that a friend or relative asked you for advice. It's because they trust you.

And if you have to, why only restrict it to cars? Tomorrow, if someone asks you for home furniture advice, take a cut from the plywood shop & carpenter. Just wanted to ask you - how would you feel if a friend recommended a lawyer to you, and the lawyer paid him for that recommendation?

Whatever $$$ or accessories you get, it'll always be out of your friend's money. It's he who is paying your profit & the dealership's, no matter how you look at it.
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Old 21st March 2016, 12:02   #13
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Default Re: Taking favours from dealer for giving business

Quote:
Originally Posted by samaspire View Post
And with first hand experience of Ford, I have also convinced a couple of friends to buy a Ford.
This statement can be a fine line. In this case, I am sure it was a genuine case of convincing, but if you start accepting/getting something from the dealership, you can end up clouding your judgement and may end up pushing friends into Ford when their requirements may actually need something else.

A car buying exercise is a tough one with the number of choices, ill informed salesmen and dealers out to extract the max out of you. So personally, in case a person you know is going for Ford based on your inputs and his/her requirements, use your connections to get the best deal for the person. Your payment/benefit would be the satisfaction you get in having first helped a person make a right decision and the benefits that you could get him/her due to your effort. This is no small thing and you can take pride in it.

And if you are believer in god or some supreme force or fate, these good actions you do will reflect back at some point in some manner.
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Old 21st March 2016, 12:04   #14
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Default re: Taking favours from a dealership for giving them business

Well, Mahindra does run a referral program on similar lines. You get a 5000 Rs. Gift Voucher if your referral is converted to a sale.
More details here: http://www.mahindrascorpio.com/tnc-referral.aspx

I don't think it is wrong to take the referral benefits if the company itself is offering it in the first place. For the company, this is a sale they wouldn't have had despite their marketing efforts(as per the T&C). But if it is done at the dealer level, then it is the friend who is paying for your referral benefit.

Most e-commerce companies offer similar referral benefits which I like to keep, as finder's fee, especially when I am dead sure that said friends will be absolutely unable to find a better deal.
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Old 21st March 2016, 12:10   #15
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Default re: Taking favours from a dealership for giving them business

First of all this is not a favour I believe, but a small help from the informed one (I believe we in TeamBHP are well informed folks).

Secondly if time spent on good will gestures are to be charged, then the already corrupt world that we are leaving in is just going to next higher level.

Finally no matter how selfless you are with your suggestion, there will always be a doubt factor and god forbid, if it is a lemon, your friendship/relationship is done for good.
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