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Old 9th September 2009, 23:31   #1
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Default Dealer not giving option to take Insurance outside

I am negotiating with a Ford dealer for Ford Fiesta Exi Limited Edition model. During negotiation, the Sales Executive agreed to provide us with Loyalty Bonus since we own a Ford Ikon. Next up, when I saw the insurance quoted by them, I definitely knew it was very high (thanks to Team-Bhp) so I called up to check with Bajaj Allianz.

Bajaj Allianz insurance via dealer is Rs 23,800 and directly via Bajaj Allianz is Rs 14,800 - a difference of Rs 9000.

I told the SE, boss I will get the insurance outside myself. First, he refused telling that there are huge disadvantages in that but after a bit of argument, he said fine sir, you can take it outside, its upto you, but you might suffer later by taking insurance directly. (typical sales talks)

Today I went to finalize the on road price and give him the booking amount. I tried hard to negotiate on some accessories as final bid for which the dealer categorically denied. I said Ok fine, give me final quote taking into account the Loyalty bonus discount and minus the Insurance and I will give you the cheque right away and you can do the booking. The sales guy suddenly said Insurance cannot be taken outside and I have to take it only with him. He said it in a firm tone. Shocked at his response and his tone, we decided to stop going ahead and walked away. Well, the sales guy dint mind it as well.( his ego or whatever)

Sales guys argument is, on a already discounted vehicle, we are giving you Loyalty Bonus(8,500) and on top of it we bargaining for few accessories is not fair and over and top of these we wanting to get Insurance outside is simply not fair on our part it seems. LOL.

This Dealer is also taking a huge premium on Registration charges compared to other car brand dealers.

Bank interest rates via this dealer is also .25% - 1% high depending on your gullibility quotient.

On a otherwise good experience, the closing turned bitter.

Gosh, How do we handle these dealers/sales guys who dont let us take insurance directly from any vendor of our choice.
Registration we are left with no choice but to do it with dealer I guess.
Bank Interest rates one can shop around.

One thing we can do is go to next dealer, what if there was no other dealer or other dealer also behaves the same?
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Old 9th September 2009, 23:44   #2
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i really don't understand how the insurance is linked to the dealer.
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Old 9th September 2009, 23:44   #3
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Wwhat the dealer is losing on the discount + loyalty bonus + freebies, he is trying to make that up in insurance commission from the agency!

But IMO they can never force you to take insurance from their agency.
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Old 10th September 2009, 00:31   #4
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Option 1)
Do you have another dealer in your city for Ford?
If yes, negotiate with them, and fix the deal with whoever you are more gives you a sweeter deal overall.

Option 2)
Meet the sales guy's senior and complain. Might help, might piss them off.
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Old 10th September 2009, 01:26   #5
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rajivn, what he's passing on is what' he's recovering somewhere else in this deal, don't hesitate to walk away, the dealer/representative is more desirous of your sale than you are of the car.

Tell him, ex showroom price of the car minus discount and your insurance & registration on him, your finance, take it or leave it.

Once you learn to walk away is when he will realise that he's lost a sale to a competitor.

Don't hesitate on him. I can't type more here, you can pm me for a private conversation as this can be read by the dealer.

Cheers
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Old 10th September 2009, 09:10   #6
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Chennai is a big city and there would be more than 1 dealer there. Anyway, dealers cannot push insurance to you. Write to Ford and IRDA. Perhaps something will happen.
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Old 10th September 2009, 09:19   #7
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I heard the same thing from Lathangi motors, Bangalore for my Fiesta 1.6 Zxi. I have written to Ford at write2md@ford.com and also about 5.5k for RTO charges. I was told that they will get back. Waiting for the reply. Please write to them. Or contact them at this address.
Ford India P Ltd.
Block - 1B, 1st Floor
RMZ Millenia Business Park
143, Dr MGR Road,
North Veeranam Salai,
Perungudi, Chennai - 600 096
Phone : 91 44 24551500

P.S: Please let us know what their reply is
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Old 10th September 2009, 10:35   #8
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Rajiv, cancel that booking.

Contact Ford & tell them about the dealer's antics.

Dealers do suggest you take it through them, but they can not force you.
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Old 10th September 2009, 10:39   #9
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Just another point of view.

A dealer has to make profits. When he starts negotiating with a prospective customer, he gives discounts on a few areas knowing that he can make up in another area, looking at the total profit he makes from a sale. He offers you a discount / freebies from his margin on the car, knowing that he can make up on insurance, registration and also some commission from the financier. If you negotiate very hard on the price and then pull out of insurance and finance, the dealer is likely to lose interest. That was what happened in your case, wherein the dealer may have felt that he gains nothing by selling the car.

The best option will be to get final quotes from more than 1 dealer and decide on the best option.
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Old 10th September 2009, 10:47   #10
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Quote:
Originally Posted by rajivn View Post
Gosh, How do we handle these dealers/sales guys
You don't need to pay a single rupee more to the dealer over the ex-showroom price. Registration, Insurance and what not you can do it yourself.

If I can get my registration and insurance done by myself in the most corrupt state in the south (Karnataka) then you can do it too.
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Old 10th September 2009, 11:03   #11
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Get hold of the sales guys senior, perhaps the owner of that dearlership. If this turns out to be difficult, then try to send an email to Ford directly (In my case it was Mahindra and writing directly to Mahindra got the dealership guys running around me, also make sure you send it from your office address, adds some value (my opinion))
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Old 10th September 2009, 11:06   #12
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@Rajiv : Spitfire's right.

And I have thought of doing the registration on my own the next time. You dont even need to go to an agent. May be a fraction of that 'handling' charges to the RTA / RTO clerk to complete the job.

I had asked for a specific number (in running series), and the dealer (manager) had told me one amount. I said ok to that, and they got me that. But the sales guys quoted a higher figure. I paid the sales guys LESS than what they asked, closer to the manager quoted figure. Sales guys asked a second time, but when I didnt, they didnt follow up either. I guess you get the drift.
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Old 10th September 2009, 11:54   #13
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Quote:
Originally Posted by anandkumargb View Post
I heard the same thing from Lathangi motors, Bangalore for my Fiesta 1.6 Zxi. I have written to Ford at write2md@ford.com and also about 5.5k for RTO charges. I was told that they will get back. Waiting for the reply. Please write to them. Or contact them at this address.
Ford India P Ltd.
Block - 1B, 1st Floor
RMZ Millenia Business Park
143, Dr MGR Road,
North Veeranam Salai,
Perungudi, Chennai - 600 096
Phone : 91 44 24551500

P.S: Please let us know what their reply is
Thanks for the information. I will get in touch with Ford if there is no other go.
Dealer repeating the same story for now, saying hes got no margin elsewhere. I am meanwhile enquiring with other dealers.
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Old 10th September 2009, 12:04   #14
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Quote:
Originally Posted by raju2512 View Post
Just another point of view.

A dealer has to make profits. When he starts negotiating with a prospective customer, he gives discounts on a few areas knowing that he can make up in another area, looking at the total profit he makes from a sale. He offers you a discount / freebies from his margin on the car, knowing that he can make up on insurance, registration and also some commission from the financier. If you negotiate very hard on the price and then pull out of insurance and finance, the dealer is likely to lose interest. That was what happened in your case, wherein the dealer may have felt that he gains nothing by selling the car.

The best option will be to get final quotes from more than 1 dealer and decide on the best option.

You are right. This is what has happened.

But as Spitfire says "You don't need to pay a single rupee more to the dealer over the ex-showroom price. Registration, Insurance and what not you can do it yourself.

If I can get my registration and insurance done by myself in the most corrupt state in the south (Karnataka) then you can do it too. "

Why should I let them make more money in Insurance, Registration and Finance. If customers are gullible, dealers happily take them for a ride. But if the customer is little aware and squeezing him, hes not interested in a sale.
Whats this attitude ? Does not the dealer make profit in the Ex-showroom price.?
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Old 10th September 2009, 12:24   #15
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Thanks everyone for taking time to share your ideas and suggestions. Sorry, dont have the time to reply to everyone individually.

Status for now - Dealer repeating the same story. He admits hes got no margin or profits to make elsewhere and I got to do Insurance only with him. He said he even spoke to GM about our case and even GM has said the same. Sales guy goes on to say its Ford's order that customers should do Insurance and Registration at
dealers end. I am not sure how true it is, but Ford dealers in Chennai have a huge markup in Registration and Insurance components.

Ford reduces the Ex-showroom price and lets the dealer mark up in these components. My experience for now shows that, thats their modus operandi.

The model I am particularly looking at is a Fiesta TDci Limited Edition Exi model and offer is valid still stocks last. I have a feeling they are not desperate to do this deal as they might be receiving lot of enquiries and bookings otherwise.

Guys, need your help in treading this deal smoothly and at the same time getting the best deal.

Checked with other dealer, hes agreed to Loyalty Bonus and when asked him to minus the Insurance component, he said he will talk to GM and get back. So lets see what happpens.

Thanks again guys. If you have similar experiences, do share here on how you handled.
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