Is this Maruti Dealer a swindler?

[YogiBear]

Hi Friends,

My fixation on buying a Swift Dzire seems to have cost me dear. Although the car is good and feels great to be with, it's the dealer's handling of financial matters that has hurt the most.

To begin with, this dealer (in South Delhi) said he wouldn't charge premium on the car delivery and it looked good to me. The staff also looked easy with financing options through HDFC Bank and I trusted them. Overall, until the day of delivery all seemed good because the Bank officials surveyed and approved the loan as well with their usual professional approach.

However, on the day of delivery the following information came to light:

• My loan was coming at an interest rate of 13.15%, while the bank's prevailing rate of interest was 12.25% on that day. I even showed them the email from hdfcbank.com, but they said if the loan was not taken from them, they wouldn't deliver the car vide Banks DO (Delivery Order).
  • This differential in interest rate has already cost me Rs. 5600 over three years of loan tenure.
• Although I had applied for a loan of Rs. 3,60,000, the dealer got the loan approved for Rs. 4,25,000. Upon asking, evasive replies were given that only Rs. 3,60,000 was being used and the rest would lapse.
• I have paid Rs. 2,00,000 as down payment and paid up 1 advance EMI of Rs. 12,042. I have also allowed ECS of Rs. 12,042 for upto 35 months henceforth.
• However, payment of this first advance EMI doesn't find mention in the papers exchanged!
• I have not been given any ECS authorization proof in my hand that clearly says how much would be debited from my account and for how long.
• The dealer's staff flatly refused giving me a copy of the thick loan document booklet upon which umpteen signatures of mine were obtained.
• Besides a cancelled cheque with my signature, six (un-dated)cheques of Rs. 36,126 each have been taken from me, crossed and favouring HDFC Bank Limited.

Doesn't all this point to some big mischief from the side of dealer? Please advise how / what should I be thinking as recourse from here onwards.

Thanks in advance for your help.

YogiBear

[siedo]

Your loan amount is rs 3.6 lac and int rate is 12.5 (since the emi is 12042). Till here things seems ok but there is some disconnect with the un dated cheques collected from you .
Also check the processing fees charged.

[srijit]

Please mention the dealers name. I am sure there is more than one dealer in South Delhi.

[invincible7]

Hi Yogi that's sad to hear.

You should check with the bank and the dealer and take clear in writing as to how the first EMI is not getting counted.

I have not been given any ECS authorization proof in my hand that clearly says how much would be debited from my account and for how long.
This would show up on the signoff documents while applying for the loan, including the term for which this would be applicable -- Check with the dealer and request for a copy. Or check with bank aswell


The dealer's staff flatly refused giving me a copy of the thick loan document booklet upon which umpteen signatures of mine were obtained.
They should be giving you the copy, its your right, you can ask the bank also for this copy.

Besides a cancelled cheque with my signature, six (un-dated)cheques of Rs. 36,126 each have been taken from me, crossed and favouring HDFC Bank Limited.

This is perfectly fine, as the bank takes this cheque for verifying the signatures for record sakes. As it is a cancelled cheque so dont worry on this part.
Also the cheques for 36 K have been taken in advance so that if due to any reasons any cheque or payment through EMI is not deducted from your account, the bank gets to cash in the cheques for 3 months payements in one go. This is a normal practise while going in for auto loans.

[ankit.jhamb]

When the loan was applied for Rs 3,60,000.then why it was sanctioned for Rs 425000.
there are many points,which donot look ok to me.ALSO Name the dealer,south delhi has a lot of maruti dealers.

[YogiBear]

Originally Posted by ankit.jhamb

there are many points,which donot look ok to me.ALSO Name the dealer,south delhi has a lot of maruti dealers.

Hi Ankit,

In view of the fact that the dealer didn't ask for a premium while delivering the car in 3-days, I have a certain soft corner for them. However, if any malpractices are proven as per this discussion, I would surely name the dealer and blow the whistle sharp on them. Hope it's okay to act in good faith.

Regards
YogiBear

[NetfreakBombay]

Don't worry this is usual practice if you are dealing with HDFC.

Reason, they would not give you a copy is:

1. Rate if interest field is black when you signed the form
2. You authorized Bank to collect duplicate keys since you lost originals
3. You authorized bank to collect duplicate RC Book/ RC Card since you lost original
4. You would NOT pay interest on first EMI / Down payment if paid already to dealer.
5. You will get a letter from HDFC in 2 - 3 weeks with"Amortization Schedule" it will show Interest portion of each EMI. Interet would be zero for first EMI.

And chques are final nail in the coffin.

All these things are done since bank is "powerless" in you default. So if you default:

1. Bank will put these cheque for clearing
2. If cheques bounce, this becomes a criminal matter and they have leverage over you
3. Since they already have ALL the permissions from you (to get duplicate keys and to get new Original RC) it would not take much to get the car and handle paperwork.

But if things go smoothly over tenure of the loan, you get everything back with NOC.

[idea1979]

Instead of waiting anymore. Please approach HDFC Car Loan dept. immediately. Give them your loan account number and clarify all your doubts by meeting centre manager before it is too late.

You have every right to look at loan documents and get loan details (I wonder why dealer is not showing you loan documents). If required, lodge your concern to HDFC in bank.

[NetfreakBombay]

Originally Posted by idea1979

You have every right to look at loan documents and get loan details (I wonder why dealer is not showing you loan documents). If required, lodge your concern to HDFC in bank.

You will surely get a copy of loan agreement this way.

What you will not get is RTO transfer and other papers that bank get you to sign for safety of loan.