[ashrafaliek]

hi joy,
in case u have not yet realised the payment from them, here's what you do;
send them a legal notice citing the reason for your cancellation, the demand of cancellation charges by them, also mention that since they have used your money from the last few months you are being magnanimous enough not to claim an interest on the amount and demanding only what you have paid as advance. give them a time period for the return and mention that you reserve your right to take them in the court of law in case of further delays and unreasonable charges.

[iron.head]

Hello Comrades!

I am in dire need of your help!

My elder brother made booking payment(Rs 21,000) for a new Honda Brio car to Linkway Honda on 26th of last month. He made rest of the payment(total Rs 580,000) few days after 26th.

Due to family emergencies my brother had to cancel buying a car and send some money to my dad. He is NOT getting any other car and will use public transport for at least another one more year.

I had told my brother to give a go ahead to Linkway Honda only after checking the car thouroughly after with the help of Team-BHP Car PDI list and he had SPECIFICALLY asked Linkway Honda to allot him the car after he checks the car to his satisfaction and NOT to get the car registered in his name before he is done with the same.

Sadly now when the plan to buy a new car was cancelled, he contacted Linkway Honda and they told him that charges of Rs 15,750 + Rs 5,000 will be charged. Rs 15,750 for insurance and Rs 5,000 as cancellation charges.

I called the Sales person at Linkway Honda and had an argument with him and told him that why did they got the car insured when my brother had told them in advance that he will check the car before finalising it. This sales person told me that we had 4 White coloured Honda Brio's and we finalled one and got it insured and this is how it works. I objected to it and he told me that some manager from the dealership will call me up regarding this.

Now Team-BHPians, I really need your help and support to help me get out of this situation and save my money.

Thanks and Regards
Aditya

[VW2010]

Firstly i will ask them to produce the Insurance forms for the car. If the car is not registered it means the insurance should be refunded and also a minor refund fee may be the only damage.

5000 for cancellation charges?. Can you check if there is any statement that mentions this in the booking process or document or whatever you used to book the car.

[iron.head]

Originally Posted by VW2010

Firstly i will ask them to produce the Insurance forms for the car. If the car is not registered it means the insurance should be refunded and also a minor refund fee may be the only damage.

5000 for cancellation charges?. Can you check if there is any statement that mentions this in the booking process or document or whatever you used to book the car.

I asked them the same and they had no reply to it. I also got in touch with a insurance person and he told me that the most probably the insurance would not have been done and the dealer is fleecing you. He said ask them for the covering letter and surrender the insurance and you will get most of the money back.

My elder brother just got a call and the sales person from Linkway Honda said that they will not charge any insurance money apart from cancellation charges of Rs 5,000. This clearly shows that they did a fraud by asking my brother for the insurance charges and after I spoke to them they are not charging that money anymore. Now I am finding out about the cancellation charges. Thank you for your reply!

[shipnil]

I think one has to sign on insurance form to buy an insurance. Did your brother sign on any insurance forms? If not, then you could ask the dealer how did the insurance company accept the form if you did not sign the form. The cancellation charge is applicable if the dealer allots you a car. When I bought my Figo, it clearly mentioned on the form that if I cancel the car after I am allotted a car, I have to pay 10,000 as cancellation charge.

[iron.head]

Originally Posted by shipnil

I think one has to sign on insurance form to buy an insurance. Did your brother sign on any insurance forms? If not, then you could ask the dealer how did the insurance company accept the form if you did not sign the form. The cancellation charge is applicable if the dealer allots you a car. When I bought my Figo, it clearly mentioned on the form that if I cancel the car after I am allotted a car, I have to pay 10,000 as cancellation charge.

Hi Shipnil

He did NOT sign on any insurance form. My brother had specifically told them to not allot him any car and he will check and approve the specific car. I will check Honda's policies and go ahead accordingly. Thank you for your relpy.

@Mods- I am posting another reply to ensure synchrony of posts. Please excuse this time.

[akhilesh51]

Originally Posted by iron.head

Sadly now when the plan to buy a new car was cancelled, he contacted Linkway Honda and they told him that charges of Rs 15,750 + Rs 5,000 will be charged. Rs 15,750 for insurance and Rs 5,000 as cancellation charges.

I called the Sales person at Linkway Honda and had an argument with him and told him that why did they got the car insured when my brother had told them in advance that he will check the car before finalising it.

Insurance amount will be refunded to the dealer by Insurance company in its entirety. There is no penalty on cancelled insurance if the vehicle has not been delivered to customer and is unregistered. So, any amounts charged on this front are baseless. Fight it out!

As for cancellation charges, these are charged by the dealer on their own whim and while you can't argue the amount charged, they are liable to have a written proof that you agree to cancellation charges. Usually, most dealers would have the same printed either on the booking form or the booking receipt, or both. Check for any such document which needs to be signed by your brother. Remember, customer sign on any such document is must else such charges cannot be forced.

Check with the dealer and ask them to produce any such document. Even if they do produce any such proof, do not forget to take a receipt of such amount and a proper bill of cancellation charges.

[F1amit]

Little bit off topic. Last year when I was in market for a hatchback, I also had a bad experience with Linkway Honda. When Jazz prices were slashed down, I had dropped into their showroom for enquiring about Jazz. Sales person there had taken me for a ride saying that initial booking amount was 100,000/- and they would raise demand with Honda only when remaining amount is paid. Where are other Honda dealers in Mumbai were asking for down payment of 25 K (still on higher side compared to other manufacturers). I had simply walked off from their showroom.

Even in your case charges 15,750 + 5000 are quite exorbitant. Other manufacturers are charging as low as 1k or 2.5 K if car has already been allotted. Do take the case strongly.

[iron.head]

email sent by Mr Kyffin Dabreo at Linkway Honda-

From: ****@autohangar.com
To: ****@hotmail.com
Subject: Re: Payment receipt
Date: Wed, 3 Oct 2012 17:25:53 +0530

Hi Sir

I have put the request for cancellation for the car , however i will not be able to reverse the insurance charge, so the amount of rs 15750+ 5000 cancellation fee will apply..


Regards,
Kyffin D'Abreo
Linkway Honda



This clearly proves that they were incorrectly charging Rs 15,750 for insurance as after my argument they cancelled it. I have sent an email to Customer Support at Honda and am waiting for their response. Thanks to Team-BHP!

[YashD]

These dealers are the main culprits who ruins a great manufacturer. The same problem is with a lot of brands in India and especially all the reputated companies has the issue. Skoda and VW are famous for it! Hyundai and Ford too are one of them. I would say these manufacturers shouldn't give dealerships to all. Otherwise they might end up in a really big trouble. Hope these company realise this and take the necessary action against the dealer!

[noopster]

iron.head-

If I remember correctly all cars in Maharashtra need to be insured before they are registered. Whether the dealer was mistaken or he delberately tried to fleece you is up for debate but what is important is that your brother is not going to lose the 15,750/- insurance charge.

As for the 5000 booking fee, there is a simple solution- please check the receipt for the initial payment for terms & conditions of the booking process. If it clearly says 5,000 non-refundable deposit, you don't have much of a case.

[rameshnanda]

Originally Posted by noopster

iron.head-

If I remember correctly all cars in Maharashtra need to be insured before they are registered. Whether the dealer was mistaken or he delberately tried to fleece you is up for debate but what is important is that your brother is not going to lose the 15,750/- insurance charge.

In Tamilnadu too, the car has to be insured first before it goes for the Registration. Generally, the dealers will insure the car a day before the registration. I got the insurance covering note for my car a day before my car went in for the registration. Also, the owner's signature is not needed to get the insurance.

[iron.head]

Originally Posted by noopster

iron.head-

If I remember correctly all cars in Maharashtra need to be insured before they are registered. Whether the dealer was mistaken or he delberately tried to fleece you is up for debate but what is important is that your brother is not going to lose the 15,750/- insurance charge.

I agree with what you say, but if the dealer would have quoted charges of Rs 5,000 in the beginning itself then it would have been understandable. He did not agree to reduce the charges even after my brother, dad and uncle spoke to him. Do you know if one needs to sign some insurance documents before the insurance is done or not? because my brother did not sign any such document.

The insurance person I know in my city told me that even if the insurance is done, which is unlikely, you can surrender it. Linkway Honda did not give me this option. It was finally when I called them up and threatened to write to senior Honda officials, they gave up.

This is the receipt that has been given by Linkway Honda. I will check with Linkway Honda if there is any document signed by my brother which says anything about cancellation charges.

[msnarain]

I am not very sure about the insurance part of your query. But going by other replies here, things look favorable to you. Fight it out. Let them know that you know your stuff.

Regarding cancellation charges, I'm afraid there isn't much you can do. I remember a clause in my booking invoice that in case of cancellation, cancellation charges will apply (There was no number specified. I guess the dealer has a free run here.) I asked for a written statement saying there will be no cancellation charges, but Capital Honda (Chennai) refused. The sales man however promised me that in case I cancel my booking, he will "fight on my behalf" with his manager regarding the cancellation charges. Obviously, I took his oral statement with a pinch of salt.

I hope the family emergency you mention here isn't anything serious. Take care.

[svsantosh]

I guess we have a in-house insurance expert? rjvora? Cant recollect his name... anyone?