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Old 5th June 2017, 13:21   #1
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Default Kataria Nexa plays bad dealer, cancels offered deal

We recently decided to retire the 2003 Mitsubishi Lancer owing to ageing and lack of parts leading to lack of reliability. It is better to sell the car before it stops on the road. Also father needs an automatic car now. After test driving a variety of cars ranging from Hexa and XUV500 to Skoda Rapid and Ciaz, the selection finally rested on Ciaz Automatic for the space, comfort and price.

I visited the Kataria NEXA dealer (Probably the largest dealer in India) near my house and arranged for a test drive immediately after Ciaz was shifted to Nexa. The test drive for the Automatic never happened until around 2nd week of may. The reason given was no test drive car available. Suddenly I receive a call in the 2nd week of may that a test car is available.

The test drive is offered the next day. Surprisingly, the sales guy turns up at our office with his senior and used car evaluator to check the lancer. The used car guy checks the car out while the senior is pressing to close the sale then and there.

I have to compliment NEXA for arranging a one way test drive to the office for my dad so he can get the feel of the AT.

Then began the process of hurrying the sale. I negotiated the deal to

12,12,XXX on road price less
40,000 exchange bonus less
60,000 exchange for the car less
15,000 additional discount.

This deal has been given in writing by the senior sales guy. We also sealed the deal because considering the exchange bonus offered by Nexa (compared to Ford Aspire) was more.

The booking amount of 11,000 was paid in cash on the 22nd of may at 8pm since they were in a hurry to close the deal. I wanted the bodykit and spoiler in Sangria red to keep the car as close to possible to my Lancer SFXI in Red. The senior sales guy confirmed the availability of RS body kit but said they cannot give a confirmed price for the accessories as the prices are changed every month. They can finalize the price of the car but they cannot give the price of accessories because it changes every month, interesting.

Since the AT Ciaz does not sell much, I was given a waiting period of 3-4 weeks, which I gladly accepted at the condition that I will hand over the lancer 10 days before I accept delivery of the new car since it is our regular commuter.

The sales guy called again the next day and collected the RC book of the lancer too.

The complete deal mentioned on the paper, deposit of booking amount, collection of RC book and a quote from the finance guy assured us that the deal was closed.

On the 2nd of this month, I get a whatsapp message (not a call) from the sales guy that my 20,000 exchange bonus has been waived and I will have to pay 20,000 extra because the company has decided to deduct 20,000 exchange bonus. I was assured that the senior will call immediately but nobody called. We followed up today and they are standing on their ground that the 20K promotion will be deducted.

Now in the wake of GST when car makers are slashing their prices, What is cooking at maruti that they decided to reduce 20,000 Rs promotion? Does this have anything to do with the facelift?

I know that the price list has it mentioned that the price at the time of delivery will be applicable, but these price changes are very small. We are talking about 20,000 rs here.

1. Why did they negotiate a deal in the first place if they cannot stick to it? They should have requested us to wait for next month to finalize the deal. Also, why hurry for the booking amount? The booking amount was paid 9 days before the start of the new month.
2. I understand the lancers resale is less and that the 40K exchange bonus is basically a promotion to trade in used car. Should I consider myself fortunate that I did not give my car to them before hand? What if the car was sold and they decided that they do not want to pay more to me now?
3. Why is a customer supposed to bear the brunt after finalizing a deal if the prices go up? I also run a small business. Any changes in costs or Forex are borne by us if the order is confirmed even when delivery periods range upto 90days.
4. I was willing to take delivery of the car. Why should I pay for the delay in assembling a new one?
5. Does this have anything to do with the facelift model coming out?

What should be my course of action? I have confirmed that I will not cancel the booking from my end and I will take this matter up further. Their solution is to offer a Car lying in Vapi which they will drive down to Ahmedabad and then deliver to us so Odometer will have a high reading (shady???).

Last edited by GTO : 7th June 2017 at 17:12. Reason: Typo
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Old 5th June 2017, 13:24   #2
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Default re: Kataria Nexa plays bad dealer, cancels offered deal

How I see it - they have got another customer who is ready to pay the price they are asking for. Sadly, you can't do much about it, either you will have to pay or you will have to let the deal go.
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Old 5th June 2017, 13:29   #3
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Default re: Kataria Nexa plays bad dealer, cancels offered deal

A truly unforgivable experience. Dealer is at fault here...

You did not mention that you have contacted Maruti customer care/ Seniors, I think you should do it. If I were you, I will stand with deal and discount offered & drag it as far as I can with seniors.

Last edited by GTO : 6th June 2017 at 10:10. Reason: Language
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Old 5th June 2017, 13:32   #4
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Default re: Kataria Nexa plays bad dealer, cancels offered deal

Going back on an offer which they have given in writing is very very unprofessional. Bad experiences with NEXA are being reported with alarming frequency. It seems all NEXAs have thrown the premium experience out of the window without batting an eyelid! You can escalate this to Maruti.

Quote:
Originally Posted by n.devdath View Post
1. The dealer is right, legally speaking. Price at the time of delivery is the applicable price UNLESS he had given you a price protection guarantee in writing.
As far as I know, this applies to changes in ex showroom price of the car. Discounts offered are always as applicable at the time of booking.

Last edited by Aditya : 6th June 2017 at 06:31. Reason: Abbreviation expanded
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Old 5th June 2017, 13:34   #5
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Default re: Kataria Nexa plays bad dealer, cancels offered deal

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Originally Posted by devarshi84 View Post
What should be my course of action? I have confirmed that I will not cancel the booking from my end and I will take this matter up further. Their solution is to offer a Car lying in Vapi which they will drive down to Ahmedabad and then deliver to us so Odometer will have a high reading (shady???).
1. The dealer is right, legally speaking. Price at the time of delivery is the applicable price UNLESS he had given you a price protection guarantee in writing.

2. There is nothing wrong in buying the car at Vapi if the car is new and nothing is shady about it. The dealer is giving you a car on which the scheme you were convinced on can be availed since it belongs to an older stock. If I were you, I'd go to Vapi and do a PDI of that car and pick it up if it seemed ok.

3. ABD to Vapi is 360 odd km and you can easily go there, do a PDI, take delivery and drive it back to ABD on your own with a TR number plate.

4. Negotiate with the dealer for, say, a 10k discount instead of the earlier 20k and it will most likely happen.
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Old 5th June 2017, 14:11   #6
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Default re: Kataria Nexa plays bad dealer, cancels offered deal

Quote:
Originally Posted by devarshi84 View Post
4. I was willing to take delivery of the car. Why should I pay for the delay in assembling a new one?
It is not just Nexa. My father booked a Creta at his residence and agreed for our i10's resale with the dealer. Everything was written on a piece of paper by my father in presence of 2 Hyundai people. Nobody issued a formal quotation.

The delivery took a month. On the delivery date, the first one passed the blame to second who was on leave. Next day, the second guy came up with funny reasons:
1. You're mistaken, we agreed on this and then reduced to this verbally;
2. We already gave you a good deal;
3. You drove the car for 2000kms since the date of booking; and
4. Please please, I'll end up in losses.

All this for Rs. 10,000 on a car worth 16 lakhs on road.

Contrary to this, since my father had committed on the final price, I had to reluctantly pay 53,000 for insurance when I had my vendor ready to do it for 33,000
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Old 5th June 2017, 15:53   #7
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Default re: Kataria Nexa plays bad dealer, cancels offered deal

Quote:
Originally Posted by devarshi84 View Post
What should be my course of action? I have confirmed that I will not cancel the booking from my end and I will take this matter up further. Their solution is to offer a Car lying in Vapi which they will drive down to Ahmedabad and then deliver to us so Odometer will have a high reading (shady???).
It is very clearly the dealer's fault. You have everything in writing. If I were in your place, I would start a social media campaign with a message on Twitter, that should put things into perspective. I also wouldn't hesitate to send a mail/fax to Chairman/GM Marketing of Maruti India. It doesn't matter if the calculations were not on official paper, these guys really dont want negative publicity so they will force the dealer to stick to the written terms & conditions.

It seems to me that they probably gave you a good deal for your Lancer and were unable to sell it in the resale market, hence are looking ways to cut down on their losses.

I exchanged my 7 year old beaten Zen Estilo Lxi two years ago with a Nissan Micra. I went to Maruti guys to have the car evaluated and they offered me 90k for it. The Nissan guys offered me 1,35,000 for my beauty. I was happy to exchange my Estilo with those guys. Few days later, they did try to wriggle out of the exchange but stuck to the deal after some verbal threats from my side.

A month later I heard that salesman had lost his job because he couldnt sell that Estilo for more than 90k.
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Old 5th June 2017, 16:45   #8
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Default re: Kataria Nexa plays bad dealer, cancels offered deal

Quote:
Originally Posted by n.devdath View Post
1. The dealer is right, legally speaking. Price at the time of delivery is the applicable price UNLESS he had given you a price protection guarantee in writing.

2. There is nothing wrong in buying the car at Vapi if the car is new and nothing is shady about it. The dealer is giving you a car on which the scheme you were convinced on can be availed since it belongs to an older stock. If I were you, I'd go to Vapi and do a PDI of that car and pick it up if it seemed ok.

3. ABD to Vapi is 360 odd km and you can easily go there, do a PDI, take delivery and drive it back to ABD on your own with a TR number plate.

4. Negotiate with the dealer for, say, a 10k discount instead of the earlier 20k and it will most likely happen.
As mentioned above, I am willing to pay that little bit extra on the on-road price difference. But it is definitely wrong to forego on an agreed deal. What if after confirming the VIN I demand a further 25K discount? If they can change the deal, why can I not do the same?
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Old 5th June 2017, 16:54   #9
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Default re: Kataria Nexa plays bad dealer, cancels offered deal

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Originally Posted by devarshi84 View Post
But it is definitely wrong to forego on an agreed deal. What if after confirming the VIN I demand a further 25K discount? If they can change the deal, why can I not do the same?
If they had given you a price guarantee in writing, they cannot forego it, on the other hand, you can definitely change the deal and get 100% refund on your booking amount if you do not intend to proceed with the purchase.

All isn't t-h-a-t bad...!!!
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Old 5th June 2017, 17:10   #10
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Default re: Kataria Nexa plays bad dealer, cancels offered deal

Since the deal was of the month of May and the sale will only happen in June, there can be change in the discounts from Maruti.
Probably the dealer forgot to mention this at the time of sale, that if the sale crosses over to next month, the discounts applicable next month will apply, which can be either more or less or same. I have been told this whenever I was involved in the buying process. The car has to be invoiced in the same month to get the discounts. Month changes, discount changes.

So all I can say is that the only fault on the part of the dealer in to not inform you that the discounts in the month of actual sale will be applicable. Apart from that, I do not think the dealer is playing foul here.
You are well within your right to cancel the booking if you feel you are being taken for a ride, but it does not look to be the case here.
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Old 5th June 2017, 17:53   #11
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Default re: Kataria Nexa plays bad dealer, cancels offered deal

While legally speaking, since the car has not been billed the dealer can change the discounts at any time.

But there's also something known as sticking to your word, which the dealer hasn't heard of. I would advise looking around to other nexa dealers to see if they can give a better deal and if not, then reconsider the decision of the Ciaz keeping in mind the new price. A sad thing to do it all over again, but you just got stuck with a bad dealer. All the best
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Old 6th June 2017, 12:22   #12
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Default Re: Kataria Nexa plays bad dealer, cancels offered deal

I messaged the dealer today that I will not accept the Vapi car unless I have a VIN and a written confirmation that no upgrade will be launched this month.

I received a call back saying my deal is approved and I will receive the VIN once the car is in transit.

The point of argument is not the change in ex-showroom price which can be a result of taxes, insurance costs or input costs due to an upgrade. The point of argument is the deal provided by the dealer and hurrying the customer into finalizing the car in the same month.
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Old 6th June 2017, 19:18   #13
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Default Re: Kataria Nexa plays bad dealer, cancels offered deal

Quote:
Originally Posted by devarshi84 View Post
I messaged the dealer today that I will not accept the Vapi car unless I have a VIN and a written confirmation that no upgrade will be launched this month.

I received a call back saying my deal is approved and I will receive the VIN once the car is in transit.

The point of argument is not the change in ex-showroom price which can be a result of taxes, insurance costs or input costs due to an upgrade. The point of argument is the deal provided by the dealer and hurrying the customer into finalizing the car in the same month.
Discounts like exchange bonus, cash discounts, free insurance scheme etc. do change month to month. Quite likely that exchange bonus changed in month of June. However, it is also likely that they are feeling that they offered too much for your old car.

Best way to know whether they are telling the truth, you can do a telephonic inquiry at another dealership in the same city and casually ask them what is the exchange bonus on Ciaz. You would know the truth.
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Old 6th June 2017, 20:00   #14
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Default Re: Kataria Nexa plays bad dealer, cancels offered deal

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Discounts like exchange bonus, cash discounts, free insurance scheme etc. do change month to month. Quite likely that exchange bonus changed in month of June. However, it is also likely that they are feeling that they offered too much for your old car.
Quote:
Originally Posted by agambhandari View Post
While legally speaking, since the car has not been billed the dealer can change the discounts at any time.
Quote:
Originally Posted by vinit.merchant View Post
Since the deal was of the month of May and the sale will only happen in June, there can be change in the discounts from Maruti.
As mentioned in my previous post in this thread, the discounts at the time of booking are applicable irrespective of of when the car is delivered. When we bought our Hyundai Xcent in 2015, the booking was done in May last week while we got delivery in July 1st week. But still discounts of May were applicable to our booking.

When the quote was given, the SA said that discounts change from month to month, hence the quote will be applicable if the booking (not delivery) is completed before end of month.
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Old 6th June 2017, 20:22   #15
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Default Re: Kataria Nexa plays bad dealer, cancels offered deal

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As mentioned in my previous post in this thread, the discounts at the time of booking are applicable irrespective of of when the car is delivered. When we bought our Hyundai Xcent in 2015, the booking was done in May last week while we got delivery in July 1st week. But still discounts of May were applicable to our booking.

When the quote was given, the SA said that discounts change from month to month, hence the quote will be applicable if the booking (not delivery) is completed before end of month.
I don't believe that is followed by every dealer, since the price isn't fixed until you get the invoice. As I said, the dealers do follow the goodwill generally, and if you book the car and they order it from the manufacturer they get billed at that time, so they can pass you the discount prevailing at that time.
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