[coolkurt]

This is just the case of the dealer being a snob. I booked my Hector in sept 2019, during the demand peak and even then, I was requested to go for the MG insurance but it just didn't make economic sense. Ultimately got an insurance from somewhere else, and the dealer was understanding.

I hope Pulsehub pull their dealer up.

[arunrajk81]

Similar issue happened to me when I tried to buy a Renault Duster in 2012 in Bengaluru. I got a better quote for insurance from New India Assurance, but the showroom wanted me to buy the car insurance from them, where the difference was around 10k. I don’t remember which insurance the showroom was offering. I talked to Renault directly and after that, the showroom agreed to letting me buy insurance of my choice. Finally, I bought the car from a different showroom, since the waiting period for the car in that particular showroom was very high.

[sanjayrozario]

Originally Posted by astrodex

I had a very strange experience car buying experience that had me question how much money does a dealer make when they sell insurance?

I had booked a Gloster (Sharp 7 Seat Variant) in October 2020 and was promised delivery by early December. Since it was a new car, they were not offering any discounts. During booking, I was clear to mention that it was going to be a company booking and the quotation etc was all made in the company name with additional road tax. I had approached my bank for loan and they offered me an attractive rate, provided I take the bank's insurance. Since it was coming to be cheaper than what the dealership offered, I agreed and didn't think much about it.

Come December and the dealership they could not get the car yet, they offered me a Savvy 6 Seater in a different color that was readily available. Since I wanted a new car for my upcoming drive, I agreed to pay full price. They sent me the updated quote and I got the bank loan amount updated. Everything was good and I went there to do the paperwork and then things went awry. The moment I told them that I was doing insurance and financing from HDFC (which I had told the sales guy before, but apparently the sales manager did not know) there was a perceptible change in their demeanor and they kept requesting me to take their insurance.

...

I still can't believe they would cancel something a 44 lakh car sale for Rs 5000/- I would actually have paid that but it felt that they would come up with another roadblock since they never felt they wanted to sell the car at that point. I thought they never had the car in stock, but I had confirmation later that they indeed had it in their yard. So I was wondering how much money do these guys make for insurance (and/or financing). And why would they deny a car sale just because of it. It is also a marketing loss, since I as a customer is put off on the MG brand now.


Any ideas how much the insurance gets them? Is such experiences common?

Had a similar experience with MG Mumbai, Malad West for the Hector. I'd told the SA then that I'll do the insurance on my own but he was adamant that insurance has to be thru' them only. He stopped following up with me which led me to the Tata Harrier. & now I feel that was the best decision.

[rakesh_r]

Originally Posted by astrodex

I still can't believe they would cancel something a 44 lakh car sale for Rs 5000/-

Well all I can say is they don't deserve your hard earned money, period. Move to a different brand, pretty sure the Endeavour or the Fortuner are much more competent vehicles.

[astrodex]

That thread exploded

Originally Posted by libranof1987

Do name the dealer here and drop in a complaint to MG; I think the dealer should have played middle ground and matched the quote.

It was MG of Goa. There is only one MG showroom here in Goa so I didn't have any more options.

Originally Posted by asit.kulkarni93

This is atrocious. I would say it’s a blessing in disguise. Please look at a different car. MG is clearly not worth your hard earned money. I wouldn’t be surprised if this news spreads and MG starts a campaign showcasing how awesome and ethical their dealerships are through their puppets from the media and influencers.

We have moved on from MG, the whole thing has been a bad experience for us. In hindsight, it worked well for us, since we decided to keep our old 7 seater a while longer and booked and got a different vehicle which we have since taken delivery.

Originally Posted by k10_nag

I usually found the insurance rates by dealerships to be slightly higher than market rates but never unreasonably so. The usual culprits are the add-on bells and whistles that cost a lot. The dealer pushes for premium after including the add-on. With slight negotiation, dealerships normally agree to drop the add-ons insurance features and helps bring down the cost of premium.


OP may try to check the break-up of premium and negotiate to bring-down the premium. There is no point in dropping chosen car due to dealership experience on such a trivial issue. But if your city doesn't have alternate MG dealerships , better to inquire if this dealership offers at least better service experience before committing the money.

It was about Rs 45,000 difference between what HDFC gave us and what dealership gave us. Both had similar insurance rates, RTI clauses etc. I don't recall exact numbers now. I might have been able to get the bank to drop their ask for insurance, but didn't think it would be a problem since insurance charges were clearly marked out in the quote.

Originally Posted by Marshall

Please name and shame the dealer

M.G of Goa

Originally Posted by V.Narayan

Shoddy and rude behaviour by a seller is never pardonable and I don't support a car dealer metaphorically spitting on a customer and to that extent my sympathy is with member @astrodex. But as the purpose of a discussion is to examine alternate views and not become an echo chamber indulge this retired old codger while I toss in some provocative thoughts. How much was the saving on insurance between the dealers quote and the bankers quote, apples to apples. At the risk of being throttled on Team BHP I will say I notice some members spend say Rs 25L on a car and then go nuts trying to get an insurance that is Rs 6,000 cheaper. I can imagine some one buying an Alto who has limited means needing to bargain to get the cheapest insurance given that his means are probably limited. You say this car was being bought on company account. I am a bit confused whether you are taking the loan or your company is taking it{employer? your own company?} So I am just curious over how many rupees of insurance differential did you lose the car you had set your heart on? The dealer was silly enough to lose the sale. But you lost the car too on decisions you chose.

So bundling can happen and does happen. Are there other facts to this case than what you have narrated? Any other discussion, incident, heated exchange or something that had already soured the interaction to the limit?

A buyer who doesn't shop around endlessly is not necessarily a sucker. He could be someone who values his time and convenience more.

There were no heated interactions or arguments, they told me that the sales guy I was interacting was young, so he should not have approved external insurance and/or should have mentioned the additonal charges. It was a curveball I didn't expect. The person I was talking understood they were loosing a deal, but didn't give me a straight reason. I was more surprised than angry, but truth be told, I am happy it didn't work out. I was able to convince my family that we need a sedan and not a 7 seater.

I own a partnership business and the car was being booked under company name. They had reworked the quote for the changed model and company registration (about 2% more than the original quote) and the loan was under company name. There was also a price increase and some essentials package which was included in revised quote. The bank had done all of the verification, CIBIL score checks etc based on the quote given and had taken the documents with me. My trade in car was also evaluated by them and included. I didn't expect insurance could be such a road blocker, and I feel that if they had told me it was not possible earlier, I might have gone with the dealer's option.

Originally Posted by fazayal

After seeing many posts on this topic, what I feel is ethical should be to clear with the dealer at the time of booking if you want to do insurance, finance, accessories and registration (yeah, that is also possible) on your own.

Many times the dealer gives discounts from insurance margin. Customer does the booking and then later says that they would get insurance from outside would upset the calculation for the dealer. (I doubt if MG is giving any discounts though)

I read on this thread, that cash being asked from customer. This can also be a scam where dealership employees would pocket the cash. I have personally seen this happening. Never give cash to any individual. If you do, get a proper receipt.

I was told they cannot give me a receipt and it had to be cash since it was for underhand payments that needs to be done to felicitate registration.

Thanks to your replies. For next time, I'd keep it in mind. I knew they were making some money on it, didn't know it was such a big amount. It didn't even occur to me to negotiate with them on the insurance, I thought it was the difference in pricing of companies that gave insurance. For more than 40 lakhs, there are wild changes in interest rates etc. between banks, so I assumed something like that was there for insurance too. Ironic thing is that for the actual vehicle I got, I took insurance from the dealer since I didn't want the hassle and everything was butter smooth.

[fazayal]

Originally Posted by astrodex

I was told they cannot give me a receipt and it had to be cash since it was for underhand payments that needs to be done to felicitate registration.

I think those guys were most likely trying to pocket that cash for themselves and not even submit it to the dealer. I have heard such cases before.

[Ph03nix]

Originally Posted by Sankar

Freelook period is 15 days and is only applicable to life insurance.

My bad, should have confirmed this before posting.

Turns it is possible to cancel an auto insurance policy.

However there will be deductions and it will be a hassle. If the difference in premiums is large enough, it may work out. Specially when the car is in demand or there are limited dealers for a particular model.

Obviously I am no insurance expert, please do your homework before even considering this.

[iamkapilb]

Originally Posted by Ph03nix

My bad, should have confirmed this before posting.

Turns it is possible to cancel an auto insurance policy.

However there will be deductions and it will be a hassle. If the difference in premiums is large enough, it may work out. Specially when the car is in demand or there are limited dealers for a particular model.

Obviously I am no insurance expert, please do your homework before even considering this.

This is brilliant information. I thought we have to live with the high priced insurance once bought from the dealer. If the cancellation charges are not too much, this can be a great method to a) get good value, b) opt for a coverage of choice, and c) stick it back to the dealer who are forcing this bundled purchase without the need to haggle, go on an extended wait period or hunt for dealerships with value pricing.

Will appreciate if anyone has additional information to share on cancellation penalties and ease of switching the insurer.

[Restart]

Our purchase of Innova was smooth even though we cancelled extended warranty, got insurance from outside (40k difference), cancelled essential accessories package by dealer. Yes, there might be a profit in selling insurance etc but is that 20-30k the only profit dealer gets in selling their car? I don’t think so. They mostly benefit from after sales service and they would also profit from selling the car. I would clearly stay away from these dealers who’d force me to buy their own packages.

[TheGearBox]

Originally Posted by kiku007

Might as well add automobiles under the sin-goods list in India.

They already are implicitly, given that they attract the same GST rate as other sin goods.

Originally Posted by astrodex

It was MG of Goa. There is only one MG showroom here in Goa so I didn't have any more options.

I read the entire thread and until you mentioned it I did not realize that this episode took place in Goa! The dealership should really change its name given that they give zero "Priority" to customers.

Originally Posted by astrodex

booked and got a different vehicle which we have since taken delivery.

So what car did you get finally?

[Sankar]

Originally Posted by Ph03nix

Turns it is possible to cancel an auto insurance policy.

However there will be deductions and it will be a hassle. If the difference in premiums is large enough, it may work out. Specially when the car is in demand or there are limited dealers for a particular model.

Yes policies (all insurance policies) can be cancelled, thats a given, and some amount after deductions will be reimbursed to the customer. This is different from freelook period. Its not a win situation for the customer if the policy is canceled for the reasons mentioned earlier.

[astrodex]

Originally Posted by TheGearBox

So what car did you get finally?

A car in a completely different segment. Stretched the budget and got a BMW 330i.


On a related note, this thread has garnered a lot of attention. I got a call from the CEO of MG Goa Showroom. He wanted to make things right, but I was no longer interested in Gloster. He then sent his sales team to my office (full disclosure: along with a flower bouquet and cake! ). It is all about how they treat the customers finally, and I did appreciate them reaching out and providing a closure to this experience.