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-   -   *SCAM* Alert : Dealerships overcharging RTO / Road Taxes (https://www.team-bhp.com/forum/indian-car-dealerships/53001-scam-alert-dealerships-overcharging-rto-road-taxes-3.html)

SB - the point u raised is correct especially in case of manufacturers that have only 1 dealer in a city. because in case of others no matter how the tax amount is misrepresented, you are anyway comparing the total cost DEALER - DEALER


finally, dealer has to give the correct tax amount in the invoice. so if he is fudging this in the QUOTATION he will then have to increase the ex-showroom in the invoice to show the same NET PRICE..

so bottomline - always check the proforma invoice vs the quotation

What if all the dealers are in the game together and quote inflated tax amount ? When I was buying the Baleno 3 years ago, I got quotes from 2-3 dealers and saw that the tax amounts varied by a few thousands. So, I made the dealer I bought the car from to match the lowest of the lot.

But I did not really calculate the tax %age then - like neoranjit said, I am afraid to take a look at the invoice now. :)


No. He need not. He will make the invoice with the same amount. And get away with it because he would not mention the item as only "Road Tax". He will mention it as "RoadTax, Registration, number plates, handling charges + basic accessories" like he did in the quote. Pretty clever, ain't it ? :)

BTW, just checked Chevy website - Spark base version does not have PS. Next version has it and on-road would be 3.5lakhs. Anyway no issues - an Alto will do just fine.

chevy site list prices are kinda misleading. there are usually huge discounts available, same for petrol indicas

As per Karnataka RTO, tax for a new vehicle is 13% of ex-showroom for vehicles costing more than 5 L. But as per the price list for Linea (Concord) and Fiesta (Lathangi), tax mentioned is at least 8 K more.

for eg. Linea emotion ex-showroom - 6,72,585 - 13% tax = 87,436. Price list shows tax as 96,180. Same differce applies for Fiesta too.

Is there any actual additional charges or dealers are taking us for a ride ?

Compiled few vehicle prices and tax dealers charge and RTO charges. Looks like all of them charge around 8 K (honda even 16 K) extra apart from 4.5 - 5 K of delivery charges. How is it justified?

I just bought an Spark base model for 2.87. Spark PS is slightly over 3. Just make sure to negotiate hard. There is lot of scope for the same. If you are not particular about year of manufacturing you can get Spark PS well under 3

A real eye opener SB, I never knew that the dealers could manipulate on the tax part. And i don't think many customers will check the tax part since its assumed that it will be according t govt rules.

You can always ask him to give you a complete break up of the costs in the invoice. After all he needs to sell a car.

Exactly how I think they get away with this.

I need to check the invoice of my Baleno to see how they allocated the tax part. And also need to compare that with the quote they gave me.

@JayD, I wonder how you manage space to park all those bikes/cars listed in your signature. But pretty varied collection over a 50-year period (1957 - 2007), I should say. :)

The road tax component and other charges that they take will never be mentioned in the invoice. The invoice will contain only the basic value of the car (showroom price), excise duty charged and sales tax charged.

For the road tax paid they will give you the tax paid receipt, for insurance you will get the insurance cover note with the premium paid being clearly mentioned and for the other charges they will give a you cash receipt. Make sure they give you all the break ups for the cash receipt.

This a superb discussion! I just checked India Garage's Tax "prices" (let me call it that since it keeps changing for the same vehicle from dealer to dealer!) and there is an excess of almost 7G. Need to check with the only other Mahindra dealer - Sireesh.

God, I am going to love skinning the dealers on this one...

Which car did you buy Sahil? And when? I realise I fell for this trick. Have talked to Maruti Regional Office and given them some feedback. Shall keep the forum posted on the interactions with MUL.

Many thanks for the insight, Supreme Baleno. I will have this point added to the "How to buy a new car" Article.

Yes.. Insurance is on the ex-showroom price of the car. I recommend that you get quotes DIRECTLY from the insurance companies (not through the dealer) - In MOST cases you will find them to be cheaper than what the dealer quotes. All the dealerships have taken an agency of one or more of these insurance companies - What irritates me most is that they resort to inflating the premium DESPITE earning handsome commissions on the premium!

So go - get your quotes from the marketplace and take the cheapest quote back to the dealer - he will either match it, or try to frighten you with 'cash-less repairs' nonsense. Don't fall for it. :) . The dealer cannot stop you from taking a policy from any insurer - the documents/cover note needs to shown for registration to be done. (My trick - tell them the agent is related and hence obligation etc.. it works all the time - and no ruffled feathers to boot!)

You technically need not pay a SINGLE RUPEE over the published rates for registration etc. There was this particular gentleman who took this up with the RTO in Cbe, and the RTO made it abundantly clear that not one rupee in excess should be paid for getting your registration done - and that any dealer found charging this is clearly liable for crimminal action. This was published in the papers as well . Which is why the dealers have now started to club this under the "handling + accessories + blah-blah " tab.

Great! Now, we know about the insurance and road tax scam. What is left is the registration scam. Can someone list out the actual - legal costs of registering a new car at the RTO (preferably in Bangalore)? Or Where can I find this information in detail?