[kumarshah]

The biggest reason dealers have to do this is local RTOs are a nightmare to work with. The most corrupt government agency is the RTO.

[SILVERWOOD]

Update:

The draft of our PIL is ready.We aim to file the same in next 2 weeks.

Legal Representation has been sent to all the vehicle manufacturers.

Waseem.

[gargville]

All Renault dealers in Jharkhand are charging Handling/Logistics charges anywhere between 6000-7500 and claim to be legal. They say the charges will be mentioned on invoice.
On question of Maruti, Tata, Hyundai dealers no more asking for handling charges the renault dealer said they other manufacturers have revised the ex-showroom prices and included handling charges in it, which means now you pay road tax and insurance on handling charge too.

Looking forward on the PIL and a consumer favourable judgement.

[Dr.Naren]

I have been never charged handing charge by Maruti during purchase of SX4(2011),Alto K10(2011) and Baleno(2015). I remember paying for my grand i10 (2013)

[SILVERWOOD]

Reply from Maharashtra Govt on my grievance.

Waseem.

[SILVERWOOD]

Dear Friends,

I had sent a legal representation to all the manufacturers in India.Legal Representation was also sent to Society Of Indian Automobile Manufactures(SIAM) and Federation Of Automobile Dealers Association (FADA) & as expected, none of them replied.

A follow up representation was also sent to all of them and that too fell on deaf ears.

Waseem.

[swiftnfurious]

Originally Posted by SILVERWOOD

....I had sent a legal representation to all the manufacturers in India.Legal Representation was also sent to Society Of Indian Automobile Manufactures(SIAM) and Federation Of Automobile Dealers Association (FADA) & as expected, none of them replied...

I can understand the manufacturers not responding to this. But SIAM?! What's their credibility if they cant respond to such things?!

If I may ask, what's the next step?

[hserus]

Originally Posted by swiftnfurious

I can understand the manufacturers not responding to this. But SIAM?! What's their credibility if they cant respond to such things?!

If I may ask, what's the next step?

Not terribly much to do. There are an umpteen number of places where this handling charge can be distributed into, if you protest it often enough.

SIAM is meant to represent automobile manufacturer interests as opposed to customer interests, and they generally have no locus standi in this, plus their constituent manufacturers will typically not want to antagonize their dealers, who are much more valuable as stakeholders than any one or more of their customers.

As it is, most of this generic "handling charge" seems to be the cost of paying an agent + bribing RTO clerks to prioritize the application I guess, and maybe the costs of transporting a vehicle to a smaller dealer in for example Jharkhand from a main dealer in the nearest big city. Can't really itemize "RTO bribe" as part of an invoice cost.

[swiftnfurious]

Originally Posted by hserus

...As it is, most of this generic "handling charge" seems to be the cost of paying an agent + bribing RTO clerks to prioritize the application I guess,...

It's not illegal to buy a new car in the first place; not registering it either - so what is the bribe for? Some morons started this crappy act (am sure this was not with the consent of buyers) and now they conveniently put the burden on the customer without absorbing it.

I once told a Hyundai SA that they were milking the customers for their benefit. Now, am pretty sure, a percent of the handling charges go to the dealer as well. She didn't have a reply for it - said that "this is how it works, after a short pause".

The car dealerships have been existing for long and this was not prevalent in the initial time (early-late 2000) at least in Kerala. Then they suddenly started adding the handling charges. When the MVD cracked, they stopped collecting it which means, it definitely is illegal, whichever way we want to put it.

Invoice means the factory price right? How can this charge be suddenly added into it?

[SILVERWOOD]

Originally Posted by swiftnfurious

I can understand the manufacturers not responding to this. But SIAM?! What's their credibility if they cant respond to such things?!

If I may ask, what's the next step?

The next step is to file a petition before the National Consumer Forum and this will be done by end of August.

Waseem.

[genopv]

Dear All,

What does Handling Charges mean in the proforma invoice in general? Does the manufacturer / dealer share charges for the transportation with the buyer? Is this included in Handling Charges?

Thanks in advance.

Rgds
Venkat

[libranof1987]

Handling/logistics charges are the dealers' way of making a quick buck.

There is absolutely no reason why you should agree to pay it. You'll be surprised how quickly they take it off the invoice as a "discount" when you mention that it is illegal.

http://www.team-bhp.com/forum/indian...ml#post2628894

[centaur]

I was charged a good handling when I took my i20 4 years ago but when Supreme Court ruled it to be illegal, I made sure I emailed the dealership and got the handling charges back. It was actually funny to see their explanation when I asked them why they were charging it and is infact illegal as per SC - "Sir, every dealer charges this".

I replied back saying I have not purchased my car from every dealer and was concerned only with them charging me this. After a lot of back and forth, they finally did relent and give it back. As a goodwill, I went ahead and asked to divert the money towards the extended warranty ( I would have taken it anyway if they refunded the money or not, so might as well make them a little happy).

My FIL while taking the delivery of the Innova did not know about it and paid it to them. Unfortunately I was not there to talk to the dealer and get it back. Later when he came to know about it, he was actually surprised and I asked him to mail to the dealership and get it back but given his busy schedule, I really doubt he did it

[rowhun]

Has there been any further developments on this? I have booked a BMW, and the handling charges are INR 50K, which I believe is uncalled for. Planning to hammer it out with the SA and the dealership.

[speedmiester]

Originally Posted by rowhun

Has there been any further developments on this? I have booked a BMW, and the handling charges are INR 50K, which I believe is uncalled for. Planning to hammer it out with the SA and the dealership.

Write to BMW India with the paper clippings and news report and ask to waive off the handling charges.
I got the handling charges waived off after I wrote to Ford India, they informed the dealer not to charge it. But now manufacturers like Maruti and Ford include the handling charges in the ex-showroom price for which there is no solution.
If the invoice contains handling charges you can fight to have this waived off.

Please see the email I received from Ford on handling charges.