Go Back   Team-BHP > BHP India > The Indian Car Scene


Reply
 
Thread Tools Search this Thread
Old 25th December 2012, 16:27   #166
BHPian
 
nik_kapur's Avatar
 
Join Date: Mar 2009
Location: New Delhi
Posts: 973
Thanked: 431 Times
Default re: Delhi Transport Dept tells Dealers to stop "Handling Charges" SCAM. EDIT: Telangana and Kerala too

Getting a 520D and im paying handling charges of Rs. 25,000. The dealer is not ready to budge at all. In fact they are charging Rs. 4000 as MCD Parking Charges on top of that . I got the Insurance done from outside and paid in total 75000 instead of Rs. 1,18,000 quoted by the dealer. If i wasnt being offered a bumper discount on the ex showroom price, i would have really given the dealer a hard time.
nik_kapur is online now   Reply With Quote
Old 25th January 2013, 10:59   #167
BHPian
 
forbhaskarm's Avatar
 
Join Date: Dec 2007
Location: Greater Noida
Posts: 210
Thanked: 21 Times
Default re: Delhi Transport Dept tells Dealers to stop "Handling Charges" SCAM. EDIT: Telangana and Kerala too

I am taking the delivery of XUV today & the dealer is charging 6200/- for logistics. I told him about the court order. In reply he showed another news print by dealers association which said that they do not charge it as a part of price of the car or some crap.

I don't intend on paying that amount. Please advise.
forbhaskarm is offline   Reply With Quote
Old 25th January 2013, 11:17   #168
BHPian
 
Join Date: Jan 2013
Location: BBS/TVM
Posts: 175
Thanked: 53 Times
Default re: Delhi Transport Dept tells Dealers to stop "Handling Charges" SCAM. EDIT: Telangana and Kerala too

does anyone know if this is still implemented only in delhi (since the thread is old) or by now for other cities as well?

The problem for first time buyers is that have very little information about such handling charges etc.. that dealers can take them for a ride (one way or another !).
stringbh is offline   Reply With Quote
Old 22nd April 2013, 12:24   #169
BHPian
 
Perakath's Avatar
 
Join Date: Feb 2009
Location: Chennai
Posts: 259
Thanked: 28 Times
Default re: Delhi Transport Dept tells Dealers to stop "Handling Charges" SCAM. EDIT: Telangana and Kerala too

As part of my job I regularly draft replies to legal notices received by a major automobile manufacturer... we have just received a legal notice from a customer arguing over the handling charges (in the Rs 5k range) levied by the dealership. The car company wants to support the dealership by pointing out that the dealership has offered "free" accessories equivalent to the amount charged. But I feel like beating the manufacturer over the head with this thread... I may be a lawyer but I am also a citizen, and one who regularly gets slapped with all sorts of miscellaneous charges from every service provider under the sun. Just yesterday I had to pay an extra 300 rupees to a private gas agency despite the company HO telling me on the phone that the charge was unjustified. If they are so desperate for this money why can't they just incorporate it in the ex-showroom price and be done with it instead of calling attention by means of a separate charge? Just to save a little tax? I completely empathize with this poor fellow who has sent the legal notice... 5500 rupees may not be much when you're buying a car for a few lakhs, but it's the principle of the thing which infuriates us all. Conned by the government, conned by private companies... we spend our lives being conned in everything we do.
Perakath is offline   (9) Thanks Reply With Quote
Old 22nd April 2013, 13:11   #170
Senior - BHPian
 
Join Date: May 2006
Location: Pune
Posts: 1,028
Thanked: 559 Times
Default re: Delhi Transport Dept tells Dealers to stop "Handling Charges" SCAM. EDIT: Telangana and Kerala too

The new Honda Amaze price list by Crystal Honda in Pune includes handling charges of 7150/-. So not sure how to really handle this issue across the board. And since the handling charge is not uniform and fixed by the manufacturer, we are at the mercy of the dealer.
Nilesh5417 is offline   Reply With Quote
Old 6th August 2013, 09:38   #171
Distinguished - BHPian
 
supremeBaleno's Avatar
 
Join Date: Dec 2005
Location: Weekdays@Chennai, Weekends@Kerala
Posts: 5,126
Thanked: 1,543 Times
Default re: Delhi Transport Dept tells Dealers to stop "Handling Charges" SCAM. EDIT: Telangana and Kerala too

We are close to buying an A-Star and here the handling-charges is 4000 (at all dealers). I tell the sales guys about the court-order banning collection of handling charges, but he says this is MSIL mandated, which I take with a pinch of salt. Anyway I email MSIL and the email exchange is given below :

_____________________________
From: webmaster@maruti.co.in
Received: 8/5/2013 4:40 PM
Subject: Enquiry About Technical Query

Hi,
I am looking to purchase an A-Star MT and all your dealers are charging close to 4000 as "Handling charges". There is a recent ruling by Delhi HC where they have ruled that charging handling charges is illegal. So this seems to be a clear violation of the law. And when I ask them about this, they say that this is mandated by MSIL, which I would think is not the case. Please clarify.

Thanks & Regards,
SB

From: contact@maruti.co.in
To: sb@hotmail.com
Date: Mon, 5 Aug 2013 22:24:49 +0530
Subject: RE: Enquiry About Technical Query CRM:0002000002231

Dear Mr. SB,

We have received your communication regarding handling charges. With reference to your query we would like to inform you that these charges are pertaining to fuel expenses, driver expenses & other related expenses. The dealer have been charging the same under an agreement for sale of vehicle with its customers including you, hence the said charges are in line of our companyís policy.

From: sb@hotmail.com
To: contact@maruti.co.in
Subject: RE: Enquiry About Technical Query CRM:0002000002231
Date: Tue, 6 Aug 2013 09:27:29 +0530

Hi,

Regarding Handling charges, if I understood you correctly, you are confirming that dealers are charging it with MSIL's blessings, which given the court order, does not sound like a smart move on Maruti's part. What makes it even more wrong is that the ex-showroom price already accounts for all the so-called petrol/driver expenses you mentioned. So, to put it simply, it is fleecing the customer.

Thanks,
SB.
supremeBaleno is offline   (2) Thanks Reply With Quote
Old 29th March 2014, 15:52   #172
BHPian
 
pdma's Avatar
 
Join Date: Oct 2013
Location: Hyderabad
Posts: 571
Thanked: 781 Times
Default re: Delhi Transport Dept tells Dealers to stop "Handling Charges" SCAM. EDIT: Telangana and Kerala too

Hello All ,

Iam reviving a old thread.

By any chance did anyone get lucky in an argument with the dealer and ending with a positive result by not paying the so called handling charges.
This is the most common practice and Iam being pushed to pay 8K as handling charges.I tried hard to negotiate on this charge but still the dealer wont budge.
The car I booked is a Honda City IDTEC and the dealer is not ready to reduce a single rupee on this charge.
Pardon my ignorance but I only got to know today about this SC ruling and explanation demanded by the court from the dealerships on this additional charge.
I would request you to share your experiences and if anyone for a change managed to squeezed the dealer on this. I saw a post by
krishnadevjs on the Official Honda city thread where I understand that he has put up a good fight and awaiting for a result.

Cheers,
pdma.
pdma is offline   Reply With Quote
Old 23rd April 2014, 18:16   #173
Newbie
 
Join Date: Oct 2013
Location: Mumbai
Posts: 23
Thanked: 74 Times
Default re: Delhi Transport Dept tells Dealers to stop "Handling Charges" SCAM. EDIT: Telangana and Kerala too

To add to this age old list of gripes, we just put money down for a Swift in Mumbai and have been asked to cough up 6840 as depot charges. Like an idiot, we paid up before I remembered that the dealer was yet to give me the break up for the "depot charges". Now, they are being supremely cagey about it. I was told that it was for "short term insurance and warehouse charges". They have an open yard for a warehouse! Let alone at least a shed.

A call to Maruti and the sales manager yielded a rather garbled, half baked commitment that they will investigate. Half an hour later the finance manager from the dealer called up to explain to me the validity of the depot charges. as a measure of the decay that pervades our bureaucracy, the bloke was very up front about the fact that the money was to be used for paying off agents to get the car registered. No getting around it. The practice has reached such brazen levels of acceptance that he apologised for not being able to provided a receipt for what essentially were bribes. Apparently, in good faith and concern for the customer's well being, they offered accessories worth 5000 rupees. Rather a moot point, given that the "free" accessories had been negotiated several sweaty afternoons before the order form was filled up.

No getting around it. A call to other dealers engendered similar responses. Sadly, Maruti seems to endorse this practice. The finance manager claims that it was the firm who gave them this procedure to follow. And no, no response from Maruti. A reference to the Delhi HC ruling was met with derision and a snort. Is the dealership a pig sty, with anthropoid lumps of porcine lard manning the telephone lines? Looks like it is, when you view them through glasses polished with the chewy, disgusting bacon rind that depot charges are.

Their ASS, however, is one of the very best I have been to. Talk about a grey world. Whatever happened to W's world of black and white?

All of this because no one is willing to put in a line item reading "Bribe for the RTO/Agent".
thedragonreborn is offline   Reply With Quote
Old 23rd April 2014, 21:55   #174
Distinguished - BHPian
 
swiftnfurious's Avatar
 
Join Date: Sep 2009
Location: Chennai
Posts: 6,407
Thanked: 6,228 Times
Default re: Delhi Transport Dept tells Dealers to stop "Handling Charges" SCAM. EDIT: Telangana and Kerala too

Quote:
Originally Posted by thedragonreborn View Post
...All of this because no one is willing to put in a line item reading "Bribe for the RTO/Agent".
One of the ways to counter this is to get the car registered by the user himself. But who in this busy world would want to take up half a day off and run around to get it done? So this better be called "Convenience" charges.

In Kerala, we usually get the registration done our self (NOT the dealer), without paying a single dime to the RTO. Even in such a case, I remember seeing the handling charges mentioned by the dealership (fuel + driver expenses). Since I was NOT serious about buying a car, I didn't bother digging more.
swiftnfurious is offline   Reply With Quote
Old 20th August 2014, 11:30   #175
BHPian
 
Join Date: Dec 2010
Location: Bangalore
Posts: 50
Thanked: 21 Times
Default re: Delhi Transport Dept tells Dealers to stop "Handling Charges" SCAM. EDIT: Telangana and Kerala too

More fuel for fire: http://timesofindia.indiatimes.com/c...w/40444327.cms

I have also sent an email to RTO Bangalore. Of course, no response yet.
needmorebhp is offline   Reply With Quote
Old 22nd September 2014, 05:21   #176
BHPian
 
pdma's Avatar
 
Join Date: Oct 2013
Location: Hyderabad
Posts: 571
Thanked: 781 Times
Default

This is one battle which I strongly feel we would never win.No matter what we try in this scenario all the dealers have been acting quite bullish and they just don't care about any law or ruling.
This has to be strongly enforced by the concerned bodies , what I meant to say is if a customer raises a concern and points towards this practice there should be some action taken. I wish to hope things change some day.

Cheers,
pdma.
pdma is offline   Reply With Quote
Old 23rd September 2014, 13:06   #177
Senior - BHPian
 
sdp1975's Avatar
 
Join Date: Aug 2009
Location: Bangalore
Posts: 1,560
Thanked: 872 Times
Default re: Delhi Transport Dept tells Dealers to stop "Handling Charges" SCAM. EDIT: Telangana and Kerala too

Car dealer told to refund ‘Incidental charges' to customer.

http://www.newindianexpress.com/citi...cle2444921.ece
sdp1975 is offline   (2) Thanks Reply With Quote
Old 23rd September 2014, 22:46   #178
BHPian
 
Join Date: Nov 2011
Location: Trivandrum
Posts: 180
Thanked: 135 Times
Default re: Delhi Transport Dept tells Dealers to stop "Handling Charges" SCAM. EDIT: Telangana and Kerala too

Do you think that this ruling can be taken as a reference to get any handling charges refunded ? Will all dealers be bound to honor refund for handling charges if customers start asking it back for vehicles purchased years back ?

Wouldn't this be enough for many dealers to go bankrupt if applicable retrospectively ? In a way if it illegal, then they should be liable to pay it back with interest since it wasn't their money after all.
kutts is online now   Reply With Quote
Old 16th January 2015, 10:27   #179
BHPian
 
commonman's Avatar
 
Join Date: Mar 2014
Location: Bangalore
Posts: 167
Thanked: 130 Times
Default re: Delhi Transport Dept tells Dealers to stop "Handling Charges" SCAM. EDIT: Telangana and Kerala too

Quote:
Originally Posted by kutts View Post
Do you think that this ruling can be taken as a reference to get any handling charges refunded ? Will all dealers be bound to honor refund for handling charges if customers start asking it back for vehicles purchased years back ?

Wouldn't this be enough for many dealers to go bankrupt if applicable retrospectively ? In a way if it illegal, then they should be liable to pay it back with interest since it wasn't their money after all.
What is the status of the "handling charges " now? Any hard evidence to get this loot stopped ?

Last edited by commonman : 16th January 2015 at 10:28. Reason: error
commonman is offline   Reply With Quote
Old 14th February 2015, 11:52   #180
Newbie
 
silvercloud's Avatar
 
Join Date: Feb 2015
Location: Bangalore
Posts: 2
Thanked: 0 Times
Default re: Delhi Transport Dept tells Dealers to stop "Handling Charges" SCAM. EDIT: Telangana and Kerala too

Quote:
Originally Posted by ghodlur View Post
What interested me in the post was the handling charges being charged to the customer. 9K is huge. Anyways this cost is illegal, hope you are aware of that. Negotiate hard with the dealer to waive this cost off.
Tried negotiating with the dealer (Bangalore), below were the points discussed
  1. C. Rajaram, Advocate & Anr. vs Gnct Of Delhi & Ors. on 20 April, 2012
  2. Case won against BMW dealer in Kochi for handling charge

Dealer Reply:
  1. "Sir it is being charged everywhere; ask Tata, Maruti etc."
  2. When told about the legal aspect they said that it was allowed and is as per Hyundai guidelines.
  3. On persisting with it, I was asked to contact Hyundai Motors India Ltd (HMIL)

Reply HMIL
  1. "Yes sir, handling charges will be charged by the dealers."
  2. On being asked about the reason for these charges, was given the sales e-mail id:crsales@hmil.net

Will be writing a mail to HMIL.
However the legal aspects are still vague
  1. The PIL filed in Delhi High Court only mentions Delhi car dealers and Delhi motor vehicles rules, is it extended to all of India ? If so kindly help me with references.
  2. Has anyone successfully negotiated this in Bangalore ?
silvercloud is offline   Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
VW directs dealers to stop physical delivery of Polo! EDIT: It's a handbrake issue subhro1988 The Indian Car Scene 147 3rd November 2015 12:13
Kerala MV Dept: Now inviting complaints via Facebook ghodlur Street Experiences 3 28th August 2013 21:46
Kerala Motor Vehicle Dept Online jkdas The Indian Car Scene 108 17th August 2013 06:12
Transport charges - for a set of 4 tyres audiophile Shifting gears 1 9th October 2008 23:35


All times are GMT +5.5. The time now is 22:58.

Copyright ©2000 - 2017, Team-BHP.com
Proudly powered by E2E Networks