[ksakotai]

Recently I booked TATA TIAGO XT CNG at Tejaswi Automobiles, Madhapur, Hyderabad by paying 11k. I specifically asked the sales person if the amount is refundable. He said yes, "Down to last Rupee". I wanted a test drive, but there was no car available. And the delivery was estimated to be in 6 to 8 weeks.

I am tending to cancel my booking and to ask for the refund. However, a chance glance at the pricing sheet small print tells me the following:

"A cancellation charge of Rs 1000 will be applicable for any Booking Cancellation"

I know I should have taken the Full Refund undertaking in writing, but one cant always think one would be taken for a ride and dot all i's and cross all t's.

I am going to visit the dealership and ask for the refund. What options do I have if they hold back the Rs 1000?

Krishnan

[GTO]

In principle, I don't agree with cancellation charges on cars simply because that car (unlike a last minute cancelled airline seat or hotel room) can very well be sold to someone else. Even the Consumer Court has usually been of this opinion that, if the product wasn't taken by the customer, then the booking amount should be refunded in full.

That said, who is going to sue over 1000 - 2000 bucks?

Plus, I remember a Maruti circular to its dealers authorising 500 bucks (or was it 1000) in cancellation fees. OEMs don't do anything without the approval of their in-house legal team, so all I can say is = read the fine print. If you aren't okay with a cancellation fee, take a 100% refund commitment in writing from the dealer. To make a sale, they might give this to you.

[vinu_h]

My POV - There is time & money spent in making a booking happen including the several sub manufacturers that are invoked thereafter by the principal OEM to complete the booking. Unless the OEM/dealer made a wrong commitment, which in this case, doesn't appear to be, it is the customer's responsibility to bear the exit cost.

[Raghu M]

Generally the dealer mentions that there will be a 10% charge for cancellations. I would not say this is from the company it's from the dealer. They charge this for process (booking, receipt generation, order placement and time spent). I don't know if this is legal but it's a common practice. The SA should have mentioned that clearly to you. While booking my XUV, I asked my SA about it and he told a 10% charge would be levied should I choose to cancel my booking.

[JoshMachine]

Technically, there's nothing that you can do since it's already mentioned in the fine print. The dealer can always say you didn't read it.

However, you can try and wriggle out a logical discussion with the dealer since the amount is small.

Reminds me of the Toyota booking process, where they charge a hefty Rs 5 lakhs for booking the Camry! And yes, this is mostly non-refundable is what I was told.

[anandhsub]

I believe the 2 options are a small booking amount with a reasonable cancelation charge or a very high booking amount with no charge, to ensure that the customers are serious about their booking and the dealers can manage their inventory better and spend less time and money on booking and cancelation processes.

I would prefer a small amount with a cancelation charge.

Of course this is only for cars that are available with a short waiting period. Makes no sense to levy a cancelation charge when you have a waiting period of months where the dealer has barely given a second thought to your booking.

[AjinkyaP]

When i was out looking for a new car, i had 3 bookings.

Kia Sonet (25000 booking amount, 100% refundable, in writing by the SA)

Hyundai Venue (21000 booking amount , 3500 cancellation charge clearly mentioned on the booking docket and highlighted by the SA while booking)

Hyundai Venue Acko drive (5000 booking amount, 100% refundable, clearly mentioned on the booking page)

I think its the responsibility of customer and moreover of SA to reiterate cancellation policy during booking process.

[GTO]

Originally Posted by AjinkyaP

Venue (21000 booking amount , 3500 cancellation charge clearly mentioned on the booking docket and highlighted by the SA while booking)

Book directly on the OEM website. I see "zero cancellation" mentioned on Hyundai's website.

[landcruiser123]

Justified in cases when the model is rare like an Innova petrol. Else, NO!

[prajwalmr62]

Originally Posted by AjinkyaP

Hyundai Venue (21000 booking amount , 3500 cancellation charge clearly mentioned on the booking docket and highlighted by the SA while booking)

Hyundai has 100% refundable booking amount. Just check with different dealer. This dealer might be the only guy in your area, so may be trying to get benefits of it.

[AjinkyaP]

Originally Posted by GTO

Book directly on the OEM website. I see "zero cancellation" mentioned on Hyundai's website.

Originally Posted by prajwalmr62

Hyundai has 100% refundable booking amount. Just check with different dealer. This dealer might be the only guy in your area, so may be trying to get benefits of it.

Well, i ended up buying from the same dealership.

Cancellation charge is mentioned in the customer docket and as per the first page of docket, looks like it's as prescribed by HMIL and not the dealership.







10.C mentions handling charges which is clearly not allowed and i didn't pay, so i am really doubting this docket now

[anjan_c2007]

These cancelation fees and other such penalties are always enumerated and while booking the auto makers are clever enough to get the potential buyer's signature on such printed sheets. Even if these are not enumerated in fine print the killer clause is :-

" I have read all the rules and agree to abide by them."

And once we sign such documents, it's futile to agitate the issue on any forum including a court of law. Our hands are tied.

Maruti I must admit comes clean on this issue or rather "came clean". I had booked a Swift Dzire ZDi by paying Rs 25,000/- in 2009 and the waiting time was getting prolonged starting with two mths soon getting extended to six months. When I requested for cancellation, they took about three to four weeks to refund but I got back Rs 25,000/-.

[thanixravindran]

Originally Posted by ksakotai

Recently I booked TATA TIAGO XT CNG at Tejaswi Automobiles, Madhapur, Hyderabad by paying 11k. I specifically asked the sales person if the amount is refundable. He said yes, "Down to last Rupee". I wanted a test drive, but there was no car available. And the delivery was estimated to be in 6 to 8 weeks.

I am tending to cancel my booking and to ask for the refund. However, a chance glance at the pricing sheet small print tells me the following:

"A cancellation charge of Rs 1000 will be applicable for any Booking Cancellation"

I know I should have taken the Full Refund undertaking in writing, but one cant always think one would be taken for a ride and dot all i's and cross all t's.

I am going to visit the dealership and ask for the refund. What options do I have if they hold back the Rs 1000?

Krishnan

They can write anything on the pricing sheet. It does not hold because you are simply not a party to the price sheet. The legal contract is the 'Booking form' where you as one party reads the terms and sign it with dealer being the other party and he counter signs it.

So please check your copy of booking form. Even if it is there, many dealers may not enforce it as goodwill. So just ask your SA with your reason politely. You may even end up getting a test drive or your car early if he wants to close the sale

[sf71hvettel]

Most dealerships will waive the cancellation charge as goodwill. Nobody wants a poor word of mouth over a small amount.

The only reason dealerships/OEMS will have a token cancellation charge is to make the car buyer think twice before cancellation and prevent multiple bookings with multiple dealers of the same brand in the same city.

[McLaren Rulez]

Originally Posted by ksakotai

I am going to visit the dealership and ask for the refund. What options do I have if they hold back the Rs 1000?

None really but the more important point is that you have a very good chance of getting a refund.

Simply tell them you're not sure about the Tiago yet and ask if they would waive the cancellation fee. Speak to the same SA that told you it was refundable. A smart dealer will prioritize customer experience over the Rs. 1000 because that's more profitable for him in the long run!