[wheelguy]

That's quite an ordeal. So much for the famed Toyota trust. Hope for speedy resolution of your issue, writing it down on this forum might help the case if ever Toyota/Lexus care about their brand image.

People pay premium not just for the product but also for the required services, that too this is not any mass market segment where only product matters and service expectations are not that high.

[aashishnb]

Hi Dhruv,

Here's a little 'out of the box' / extreme solution to your problem. I presume you've paid them by cheque.
Suggest you file a winding up petition against the company with IBC saying that you are a 'creditor' (which can be argued that you are by a lawyer!!) and ask for your money back. Send a copy to Toyota / Lexus saying there is a winding up petition against the dealer. This would mean they stand to lose their dealership.
While the dealer may be quite thick skinned, this would get them rattled enough. Perhaps, if you have not yet got the invoice for your vehicle - you can ask for the money back only and give them some of their own medicine!!

Suggest you cheque with your chartered accountant / legal advisor about this course of action.

Originally Posted by Dhruv29

As you can see from my posts on Team-BHP, we had purchased Lexus ES300h on January 4th 2019 from Lexus Gurgaon. The car was previously used as a demo vehicle by Cosmic Motors Pvt Ltd (Owners of Lexus, Gurgaon) with hypothecation from Toyota Financial Services and is registered in their name.
As per our negotiations during the purchase of the car with Sales Advisor, we were assured that ownership will be transferred to us within a week of purchase along with extended warranty, 2nd Key fob and valet key card.
During the purchase period we were always assured by the Sales Advisor that we will not face any difficulties and the formalities will be completed in a matter of few days. Being satisfied with his response, we paid the negotiated payment of the car (Rs. 57,00,000) along with Extended Warranty of the vehicle as part of the negotiations along with delivery of 2nd Key and a Valet key within a week.

Mod Note: Please quote ONLY the relevant bits of a post. Quoting a full, long post inconveniences our mobile readers.

[i74js]

This is breach of trust. Should not have happened at the very first place, nonetheless there are several examples of dealers committing frauds at every possible opportunity.

Not blaming you, ensuring all papers and functional keys are also a part of PDI. Sales advisers have no authority what so ever; even the negotiated price for the car is cleared by a third person behind the doors. I would consider them fungible resource and they are / get replaced at the drop of a hat.

You will have to fight it out now; that's the way out. Several fellow members have suggested this and I would agree to their wisdom.

Add as many respondents in the case that law permits including TKML, TFL, Dealership (as company) and the owner and directors.

All the very best !

[parth.jain]

Looks like pretty sad state of affairs going on at Lexus. People buy Lexus at this ridiculous not because they are better than the Germans but because there is a perception that Lexus will look after their customers much better than others. Can't say if it's true anymore or not.

[sumeethaldankar]

Sad to read about the ordeal. At 50-60 lacs I would expect utmost royal treatment with lots of sweet talking people buttering me up. But unfortunately for the opener he has only received lies and empty promises. I hope Toyota takes heed and makes right with the customer. Certainly not expected from one of the Top 3 companies in the world. If this is how one gets treated for such an expensive product what will the lower segments buyers do?

[ash22]

That's sad to hear Dhruv29. Unacceptable from a brand like Lexus. 57 Lakhs is not easy money.
Its time you file a complaint in Police against cosmic motors, Toyota Financial and Lexus India and also write up to the consumer court with the details. I hope you have recorded all the conversations with them so that you can submit the same as proof.
Its high time, Lexus step in and solves the issue.

[dark.knight]

Originally Posted by 2000rpm

Imagine a 2% margin on every turn. and 2 rotations per month. Thats 11 months x 2% x 2 = 44% profit from your money.

Penny wise pounds foolish till the time it works and when it doesnt work and the turning stops.. its legal cases up the wazoo and permanent loss of a business.

I've been given such horrible advice by accountants to do such things while they game the system. This is where finance knowledge should be completely ignored.. work on the basis of turnover - (expenses+cost of commodity) = profits, pure and simple. Problem is Lexus wont have fixed sales of 3-4 units per month per dealership, so they resort to these things, although this is a freak case of owning a showroom piece through loans, selling the car and not transferring funds to the loan company (a sister division of Lexus in this case) and hosing the customer completely.

Disasterous, it would've been better if existing showrooms of Toyota were used to merely take orders by demand and supply directly. Lexus independent showrooms selling CBU overpriced cars strictly depending on Lexus sales alone was doomed to failure.

I shiver when there are payables exceeding a lakh or so, and many geniuses who have inexplicably decided to push the boundaries of a practical and stable business practice cry when their tricks stop working.

If this was any mainstream car, the buyer would've raised alarms after 1 month of no registration, but here the buyer waited in good faith knowing that Lexus a maverick luxury brand that wants to grow in India won't do any harm and got into the deceiving end of it.

[Engine_Roars]

What a sad situation to be in. Just a small suggestion, please do not return the car as long as you don't get your money back. Please start exploring all the legal options to keep it with you, till you get your money back. They might & they will try to get the car back and you will be left without your money & the car and that will be a bigger loss to you, mentally & financially. Wish you all the luck, stay strong, community stands with you!!

[charanreddy]

File the police complaint under the strictest of sections, make every one incl. the dealer and heads of the company including the overseas heads a party and initiate legal proceedings at the earliest.. Your 'settlements' or negotiations with them can happen even post you going the legal route.. Do not be afraid to loose a bit of time or money..

Also do send the leading automotive journalists and Lexus / Toyota heads across the globe the summary of your experience... Put pressure form all directions.

[Turbanator]

Originally Posted by Dhruv29

A
The MD assured me that he has no shortage of funds and just wanted to get out of Automotive business that’s why he is exiting Toyota and have deposited the required funds to Toyota.

This time we said that either transfer the car to us or take the car back and give us the money we paid.

In September’19, unable to get the NOC from Toyota Financials, the MD of Cosmic Motors agreed to reimburse the amount for the car in the form of Cheque But in the month of October, he gave us the cheque dated for 18th November’2019.

Dealership principal indeed comes from a decent background. Even though they don't agree but I believe, they must have used the funds in other segments so this cash crunch. Toyota is one of the more strict companies to deal with. Anything and everything is invoiced only after full receipt of funds though they do have some program at reduced interest costs with TFS. It's correct that the outgoing dealership owns the large building on the highway and Uttam Toyota has leased the same from them and paid for the machinery/ infrastructure at depreciated costs. Most of the dues of TFS were settled this way.


They must have given you the cheque as a security sort of thing, on the basis of some understanding with TFS as they had delayed for so long. Most of the employees of the manufacturers hardly give a hoot to regular mails. You can be lucky if you find a proactive senior guy at such companies which doesn't seem the case with Lexus India as your case is known to most of the guys.

Originally Posted by GTO

I have ONE QUESTION for Lexus = where the heck is your legendary customer service? W

Absolutely, on the contrary, TFS has first adjusted their own dues without bothering about the customer as the demo Cars are hypothecated with TFS and those are secured. I feel Lexus India is equally responsible for not trying to help the customer. It was Lexus India who appointed the dealership.

Originally Posted by 2000rpm

A
This looks like working capital game, the whole auto dealership model is based on rotation of working capital.
Imagine a 2% margin on every turn. and 2 rotations per month. Thats 11 months x 2% x 2 = 44% profit from your money.

It's not so easy, factor a transit time from factory to the dealership of around 10 days on an average and then depending on the model/ variant, the average rotation should be more like 8-10 times a year.

[Dhruv29]

Thank you everyone for your replies on the the thread. I Appreciate it.
Update:
I received a text from Abhimanyu Mehta. Apparently I was misinformed by Lexus Delhi and the sales advisor that he is the Dealer Principal of Lexus gurgaon and the one in charge. For them, Dealer Principal=Owner, who is Mr. Pradeep Chabra and not Mr. Abhimanyu.
But this doesn’t change the fact that he was asked for final price by sales advisor when we were purchasing the car. And Apparently he was the one who came to Police station representing opposite party. He discussed about our car with my Dad on behalf of Mr. Pradeep. Maybe he has some other designation within the company.
He also said that he has nothing to gain from this situation and to keep the dialogue going to procure NOC. Going legal way will make matters worse and delay it even further. He will update me on the matter tomorrow.
Mods: Please edit my original post to reflect it.

[Engine_Roars]

Originally Posted by Dhruv29

Thank you everyone for your replies on the the thread. I Appreciate it.
Update:
I received a text from Abhimanyu Mehta. Apparently I was misinformed by Lexus Delhi and the sales advisor that he is the Dealer


He also said that he has nothing to gain from this situation and to keep the dialogue going to procure NOC. Going legal way will make matters worse and delay it even further. He will update me on the matter tomorrow.
Mods: Please edit my original post to reflect it.

Did he just threaten you against going to the police station or was it more of a genuine advise? I would not be surprised if he wanted to threaten, that is how money & power works in this part of the world.

I think this is the after effect of going live with this thread. I would have appreciated a more positive response but then it would be too much to expect.

[2000rpm]

Originally Posted by Turbanator

It's not so easy, factor a transit time from factory to the dealership of around 10 days on an average and then depending on the model/ variant, the average rotation should be more like 8-10 times a year.

Agree, I did not factor in that the Lexus is probably operated on Made to order basis! The turnovers will be much lower than say a Maruti dealer!

[Dhruv29]

Originally Posted by Engine_Roars

Did he just threaten you against going to the police station or was it more of a genuine advise? I would not be surprised if he wanted to threaten, that is how money & power works in this part of the world.

It’s not a threat as far as i can understand. There are 1-2 messages in between from both side. Attaching Screenshot to clear things.

[bmw_lover]

@Dhruv29

Trust me dhruv, this doesn't change a thing. The person in what's app message really doesn't have anything to gain but lose either. He is not the concerned person. You basically have to go after the owner of the dealership. Don't allow him to enter your mind space about going legal. He is just fronting for the real culprit. Drag him on just like you have been by the dealership. And file a legal complaint as well as the FIR. They will keep discouraging you about it being a hassle filled process. But honestly has the dialogue way been any smoother. It will be a hassle for them also. What guarantees it will be any smoother from hereon? Once you file a FIR, even the police will harass them and milk them for money (because they will be in a big soup).

Go ahead with the legal route. Thats the only and best option you have. You can always take back your complaint once they honor their commitments and responsibilities.

And as it is if you still have to run and wait for this transfer of ownership, you better do that running for the legal process.

Fraud and criminal breach of trust are really big charges (criminal charges which attract jail time). They will beg you to settle later on which will be most satisfying.

Remember The Art of War (SunTzu)? You need to change the table sides before negotiating. Once you go legal, they will approach you for settlement. When they reach your office, you will be at the boss's side of the table. Make them wait every time. Settle some old scores!!