[livetodrive]

Extortion of handling charges by Trident Renault

I am writing this post with extreme disgust & anger to highlight the monopoly and extortion policy of Trident Renault, Bangalore.
My wife and I went to Trident Renault, Whitefield branch on 21st Aug to book the new 1.3 Turbo Petrol manual. After TD, when we sat down for booking with all documents and cheque, the sales person Ambrish insisted that handling and logistic charges of 11,033/- is mandatory and that can’t be waived off. After trying to reason couple of times that these charges are termed illegal by the Supreme Court of India and no dealer can demand it, he wasn’t ready to budge. We left eventually without a booking. They are ready to lose a customer but not waive off something which is illegal!

The same evening my wife highlighted the concern on Twitter RenaultIndia page. On 22nd Aug, received a call from Customercare and subsequently from Complains dept that the issue is being looked into and they are working with the dealer to get the charges waived off. The same evening received calls from Trident Renault Whitefield branch and Kalyan Ngr branch that the handling charges cannot be waived off! They justified it as charges incurred for transporting the vehicle from stockyard to showroom and the subsequent PDI. We tried reasoning that we are already paying an Ex-showroom price and not an Ex-Stockyard price. No amount of reasoning worked and the attitude of either pay these charges or don’t book the car was evident from their conversation. Incidentally, someone referred us to Mysore branch of having a good experience there. Being little optimistic, my wife spoke to the Branch Mgr, Ms. Asha Rani. She on records said the same that these charges cannot be waived off and we are free to take legal course post-delivery!!
Rejected, we dropped a mail again to customer care and the MD of Renault India, Mr. Venkatram Mamillapalle. Monday morning, 24th Aug I received a call from Whitefield branch again reiterating that these charges are mandatory. All through our conversation for past 3 days, we have been highlighting the multiple instances where customers have challenged this in Consumer Court and won compensation, but honestly they consider themselves above Supreme court of India.
Incidentally, we spoke to Renault Kondapur branch, Hyderabad and Renault Kolkata South, and both of them firmly said that handling charges are inevitable. They confirmed this is going on from years, and that Renault is aware of dealers charging Handling charges. The same has been confirmed by all the branches in Blore that Renault is well aware of this practice and has never objected. I have those call recordings if anyone needs to verify.

My wife received a call from 25th Aug from Mr. Kumara Swamy, on behalf of Trident group. He kept on reiterating that these charges are inevitable and we are bound to pay them. They can offer some discount from the margin of insurance, but that’s the best they can do. Below is the link to the entire conversation recording.

https://www.youtube.com/watch?v=_PzEngq8CKU

The entire scenario of past 5 days clearly shows Trident Renault is no less than a goon and this is day light robbery. Its not the amount, but about morals and ethics, if I should be paying this amount which the RTOs and the SCI have termed illegal. Now am left wondering if shortlisting a Renault was even the right choice? When they have no interest in retaining customers, how would the post sales service be? How do I deal with dealers who consider themselves above the law of the land?

EDIT: Read BHPian bharatbits perfect explanation of the Supreme Court & High Court orders here.

[RedTerrano]

Originally Posted by livetodrive

How do I deal with dealers who consider themselves above the law of the land?

Option 1: Go to their competitor. Hit where it hurts the most. ₹ ₹ ₹
Option 2: As per this article, a complaint to the RTO can lead to suspension of license. (This might mean purchasing the vehicle after payment of illegal charges.) Without this proof, I doubt the authorities can take action.

https://motorbash.com/handling-charges-are-illegal/

[Nithesh_M]

Maybe give Kicks a try. Same product underneath

[2cents]

I think this will always be the case with cars that list a single price nationwide. Suzuki doesn't seem to charge this handling fee, but the ex-showroom price is different in each district, even within the same state. It's all in the packaging. No one complains, problem solved!

[Comrade]

I dont think handling charges are one-size fits all manufacturers. I think in case of Renault, dealers are expected to collect handling charges because this dealer overhead is not already built into the ex-showroom price. Key point here is that dealer should provide a itemized/seperate invoice for these handling charges. If not, then its fraud. Here is a recent article on team-bhp

Originally Posted by blackwasp

Delivery and handling charges:

This is a big point of contention among the car buyers out there. Broadly speaking, there are 3 types of handling charges:
• Included in ex-showroom
• Excluded from ex-showroom, albeit set by the manufacturer
• Arbitrary charges levied by dealers

Depending upon the manufacturer, you might have to pay an additional charge over and above the car's ex-showroom rate. It is still a grey area, legally speaking, as different jurisdictions implement the rules differently. Premium car dealerships will often include a charge for a flat bed to take the car to and from the RTO you want the car registered at. As their dealer network is thin, they may not have a dealership in the place where you want the car registered. They might also arrange home delivery if you so desire. From my experience, most of the premium car dealers will negotiate an all-inclusive cost and specify all the inclusions. However, they might not share the breakup with you for the add-on services like service fees for delivery / flat bed etc.

Quoting myself here as this post is relevant even now:

Originally Posted by blackwasp

I would like to add a different take to the handling charges. While many of us consider them to be illegal, I thought I'd share my experiences.

Case 1: Companies like MSIL, which include all their costs - logistics, PDI, fuel etc. and combine it in the 'ex-showroom' that is given to you.

Here, as a customer, you end up paying more money in the form of taxes as you pay the GST (upto 53% depending on segment) + road tax, insurance, etc. on a higher ex-showroom price.

Case 2: Companies like Renault, Fiat, VW, that bill you separate logistic charges / handling charges / PDI charges.

Here, this is not added to the car's base price, and it is billed as service, attracting a lower tax on this amount. Further, your road tax and insurance will be slightly lower as well since your base price is not inflated.

Now, it must be noted that you check with the company directly and check if its the approved figure and that the dealer is not trying to pull a fast one on you. Also, he must give you a separate invoice for this.

Case 3: Companies like Isuzu.

The standard accessories in the car are billed separately so further lower the car's base price. Yes, as a buyer, you end up paying a total amount, but had they included the accessories' cost, you'd again end up paying higher tax and others on it.


While I agree that when buying a car, we don't want to pay any extra charges, its best to get a thorough look into the pricing and take a call. I recommend all to call, email and double check with the respective company officials on the approved charges in different states and cities. And ask for separate invoices on all charges - eg accessories, handling charges, car base price, insurance etc.

EDIT - Regarding dealerships charging under the registration charges - this is optional. The dealership may charge it, but it should also give you the option of doing the registration on your own if you don't want to pay for these services. High end car dealers will add charges for a flatbed to take your ride to the RTO of your choice and back.

[mahadev_kc]

Originally Posted by RedTerrano

Option 1: Go to their competitor. Hit where it hurts the most. ₹ ₹ ₹

The problem in Bangalore, is that all the renault showrooms are owned by Trident. It is a monopoly. Even when I was negotiating to buy duster diesel earlier, the sales advisor told, "sir whichever branch you go, it is all Trident" and all offers are same.

Renault should appoint a rival dealer, to dent the arrogance of these Trident people

[RedTerrano]

Originally Posted by mahadev_kc

The problem in Bangalore, is that all the renault showrooms are owned by Trident. It is a monopoly.

As far as my limited knowledge goes, your registration RTO is defined by your domicile. There is no restriction on the dealer whom you can purchase the vehicle from.
One solution could be to identify a non trident vendor out side BLR limits and ask him to get the registration done at the required RTO.
Of course, I understand this is easier said than done.

[bharatbits]

I would really advise to stay away from such brands. Buying is just a one time experience but not so with service. Everytime you don't want to go to the same people even if you didn't have a pleasant experience with them on a previous instance. Same is the case with Skoda and many other luxury car makers. STAY AWAY from dealers that have a monopoly in your region. Manufacturers can't be so ignorant to appoint just one group in a region and leave their customers at the mercy of them.

[GBX]

Unpopular opinion, but is it worth this much effort to argue over a lineitem which amounts to less than 1% of the price?

Wouldn't it be more prudent to look at the overall discount and not worry how the dealer accounts it in their books?

[Agarwal_Aayush]

Originally Posted by GBX

Unpopular opinion, but is it worth this much effort to argue over a lineitem which amounts to less than 1% of the price?

Wouldn't it be more prudent to look at the overall discount and not worry how the dealer accounts it in their books?

I don't think its just about what the overall handling charges amount to, its more got to do with the attitude that the dealership is showing to the customer alongwith the blatant ignorance of the court ruling.

As per me, even if it amounts to a 3 digits figure or even a 2 digit per se, if something that has been deemed by the Court as not legal, the showroom guys cannot make it compulsory.

Also, if you can give a discount of 10k, don't really understand what is so important to charge a customer almost the same amount as handling charges.

Aayush

[aargee]

Originally Posted by livetodrive

He kept on reiterating that these charges are inevitable and we are bound to pay them. They can offer some discount from the margin of insurance, but that’s the best they can do.

... How do I deal with dealers who consider themselves above the law of the land?

The way I see it from Trident is - Take it or leave it

If you love the car, ignore the dealer's attitude; if you're concerned about dealer's attitude leave the car & go with competitor. I see some light that they're offering you some discount in form of insurance, which means, they're still interested in selling you the car. Like Blackwasp said in his post, Renault might be doing a transparent business, who knows? Just because MSIL don't levy such charges don't mean they're honest guys either

Bitter truth is that, Trident don't care about losing one customer walking away for lifetime. If you decide to walk away from a car that you care, you're missing that love; every single time you see a Duster on road, you will certainly feel a hollowness in you. On a lighter note, your fiance is more important than her Parents, relatively speaking

Now, practically speaking, 11K is 1% compared to the lowest variant of Duster. Honestly, what do you love more? The 1% or the car?

[click]

I'd say, look at other options. And the good news is there are so many of them. If duster was the only compact suv around, I would understand taking it on the chin and going with the extortion. But it is not, and there is solid competition. Hurt them where it makes sense. Buy another car and send another email to the MD with your picture with new car. Let him know his company's careless attitude towards SC judgement has consequences too.

[DuHasstMich]

I am not sure why such nominal amounts are not digestible by customers and why a special court ruling had to be passed for this.
In the end, the dealership is a business, whatever margin they earn per car is not the direct profit of the owner. They have to account for the space rental, staff salaries, maintenance and consumables of the dealership etc, to ensure the customers have a pleasant experience. All this while making a profit, since this is not a charity.

If the overall profit drops, you can expect a cut-down in services as well, is that something you will live with?
Would you rather save 10K off your car, or travel to remote locations and/or experience a shabby dealership? As folks have rightly mentioned in the post above, it is just <1% of your car price!

This entire equation would change, if the car manufacturers themselves own the dealerships and include all such add-on costs in ex-showroom price, and remove such charges from customer sight.

A privately owned dealership cannot standardize the costs, since rent/salaries are dependent on the city/area they are located in, which can vary significantly.

[SPIKE ARRESTOR]

Originally Posted by livetodrive

Its not the amount, but about morals and ethics, if I should be paying this amount which the RTOs and the SCI have termed illegal.

I feel so happy when I see people stand up and speak, specially when you know the amount and time you will have to spend running around court cases etc. Salute you and your wife for standing up and speak.

Do let us know the outcome of this issue.

Spike

[ABHI_1512]

Hi livetodrive,

You have done the absolute right thing in walking away. I admire the fact that you have stood for the principle. If you can pay 10 lacs for a car then you can very well pay 11k as well and that fact should not be lost on anybody.

If there is any ambiguity regarding the handling charges then you have every right to ask about the details and if not satisfied, you can very well walk away. A recent incident happened in Guwahati as well regarding the handling charges where the DCT suspended the trade license of an auto dealer.

https://www.rushlane.com/jeep-compas...-12364719.html

You have done the right thing in not adding to the corruption that already exists through the dealership. In Calcutta, handling charges are usually waived off and same thing happened recently when my friend got a new car from Ford. That one needs to cite a Supreme Court ruling to get the point across tells you the story where the dealerships are losing customers.

I hope customers understand the value of money and walk away from such dealerships who are opaque in their dealings. Thank you for letting us know about your story and you did the right thing, don’t you believe otherwise at all.