[CarguyNish]

Originally Posted by UB_007

I am in discussion with TATA dealer in my region, Hanuman Motors in Udupi- Karnataka for Tiago XZA. They are charging INR. 5000 which includes handling charges, RTO registration, number plates.

This is included if you opt for dealer registration. Apart from Bengaluru, in places like Mangalore, Udupi, Mysore, the vehicles are registered by dealers instead of Individual (Through Agents).

You're case is the same. Few things I would suggest you to do when you book one.

1. If Handling Charges is included in Pricelist, ask the dealer to provide bill for it. ₹5000 should be including GST.

2. Go for self registration. Tell the dealer that you won't be paying anything else apart from Ex-showroom, Road tax, Insurance. If he is still not willing to give up, you should move out.

By doing this, he will be loosing booking thereby affecting his incentive. So, he'll have to act back and eventually will waive off the charge.

I am very particular about what I pay during car purchase.

3. Get a Pricelist of rivals, if it excludes Handling Charges, you can show that to the Tata dealer. If not, point 1 & 2 will be applicable.

[blackwasp]

I would like to add a different take to the handling charges. While many of us consider them to be illegal, I thought I'd share my experiences.

Case 1: Companies like MSIL, which include all their costs - logistics, PDI, fuel etc. and combine it in the 'ex-showroom' that is given to you.

Here, as a customer, you end up paying more money in the form of taxes as you pay the GST (upto 53% depending on segment) + road tax, insurance, etc. on a higher ex-showroom price.

Case 2: Companies like Renault, Fiat, VW, that bill you separate logistic charges / handling charges / PDI charges.

Here, this is not added to the car's base price, and it is billed as service, attracting a lower tax on this amount. Further, your road tax and insurance will be slightly lower as well since your base price is not inflated.

Now, it must be noted that you check with the company directly and check if its the approved figure and that the dealer is not trying to pull a fast one on you. Also, he must give you a separate invoice for this.

Case 3: Companies like Isuzu.

The standard accessories in the car are billed separately so further lower the car's base price. Yes, as a buyer, you end up paying a total amount, but had they included the accessories' cost, you'd again end up paying higher tax and others on it.


While I agree that when buying a car, we don't want to pay any extra charges, its best to get a thorough look into the pricing and take a call. I recommend all to call, email and double check with the respective company officials on the approved charges in different states and cities. And ask for separate invoices on all charges - eg accessories, handling charges, car base price, insurance etc.

EDIT - Regarding dealerships charging under the registration charges - this is optional. The dealership may charge it, but it should also give you the option of doing the registration on your own if you don't want to pay for these services. High end car dealers will add charges for a flatbed to take your ride to the RTO of your choice and back.

[Ironhide]

According to a report in Rushlane, a prospective customer had the handling charges waived from the price of the car after writing a mail to Tata. Apparently Tata intervened and asked the dealer to drop it. This was prompt and positive action on part of the company. Hope other automakers follow suit.

Rushlane

CarToq


Cheers !

(PS: Article courtesy - Rushlane and CarToq)

[S_U_N]

I am in the process of buying a Honda Activa.
One dealer is charging handling fees of Rs. 600 and another is askig for Rs. 775 - which they now agreed to lower to Rs. 600.

This is apart from Rs. 400 which is RTO fees plus 11% road tax plus Rs. 200 towards smart card fees.

[AutoNoob]

Originally Posted by S_U_N

I am in the process of buying a Honda Activa.
One dealer is charging handling fees of Rs. 600

We faced similar situation with Suzuki 2 Wheeler dealer in Gurgaon sometime back. We called up the concerned ASM through a friend in Suzuki.

He admitted that this charge is being taken by dealer, but only because this amount is used to grease palms of RTO staff. If dealer fails to pay up, the registration files are rejected for smallest of the reasons or even if they are accepted, the registration is kept pending for long.

After the call, the dealer manager was very frank. He informed that customers question them for any delay in vehicle registration. The dealers are stuck in middle. Since the margins in 2 Wheeler sales are already wafer thin, it's not feasible for dealers to payup from their pocket. So, they demand from customers in disguise of handling charges.

He offered to waive off the charges for us and pay from their side. We left the conversation at that point and paid the amount. I don't know whether we did right or wrong.

In my opinion, it's to do with systemetic rot that is omnipresent.

[mathuranuj]

I recently enquired about Mercedes CLA, and the price list included Handling charges as 77000. This is absolutely absurd and car companies should put a stop to this illegal activity.

[GM6James]

Originally Posted by mathuranuj

I recently enquired about Mercedes CLA, and the price list included Handling charges as 77000. This is absolutely absurd and car companies should put a stop to this illegal activity.

I have been quoted 10,000 INR handling charges for an Octavia VRS by a Škoda dealer in delhi.

Any suggestions on what I should do ?

[Dry Ice]

Originally Posted by GM6James

I have been quoted 10,000 INR handling charges for an Octavia VRS by a Škoda dealer in delhi.

Any suggestions on what I should do ?

Try to get it removed/lowered at your own level - confront them with the HC judgement copies etc. Slim chance it will work - since Skoda dealers+company are pretty thick skinned - but give it a shot. The way Skoda as a company operates, they would be least bothered about it even if you were to escalate it to the company.

I was helping a friend recently for his car purchase and didn't find this 'handling charge' in any price list of Maruti, Ford, Tata or Hyundai. In Delhi.

[duke]

I just purchased an Innova Crysta from Espirit Toyota in Delhi. In the initial proforma that they sent it included ₹6250 as logistics charge. I merely pointed out to the sales exec that the charge was not legal and showed him the Team-BHP thread on this topic. He sent me a revised proforma with a discount included for the logistic charge thereby reversing it. I found this a very decent behaviour that it didn't take me any strong arming or having to get aggressive to have them remove the charge.

[Mu009]

Originally Posted by SILVERWOOD

Dear Friends,

Our PIL (Drive without Borders Foundation vs. Federation of Automobile Dealers Association of India(CC/613/2017): NCDRC) on Handling/Logistic Charges was listed before the Hon'ble National Consumer Disputes Redressal Commission today.
=========
I can be reached at waseemmemonbt@gmail.com.

Waseem.

Hi! Any updates since?

If more examples of handling charges are still of any use to you, I would be very glad to contribute one paid for a Hyundai Creta purchased in Madhya Pradesh in 2018 (friend's vehicle).

And I will not attempt to thank you - I cannot do justice to your utterly momentous efforts with empty words sir.

Cheers!

[Djay]

Wanted to provide an update on the Handling Charges issue based on a buying experience in Pune. I believe same will be applicable all over India.

I purchased a TVS Jupiter from a Pune authorised dealer last month. He added Rs. 1250 as 'Registration Service Charges' which was initially quoted in RTO Taxes & Others. Checked that the situation was same with other dealers. Protested with the showroom manager, who said its decided by management and not in his hands. Anyways went ahead with the purchase . Subsequently I raised a complaint with Pune RTO and informed the media.

Based on many such complaints a popular newspaper ran an investigation and subsequently Pune RTO clarified that such charges are illegal. They informed dealers to stop charging and put up a notice at all showrooms to this effect.

Armed with this update, I raised a complaint with TVS. The dealer manager called me up and after much discussion I received a full refund. However he informed that these are paid to RTO officials as bribes to quickly register vehicles without inspection. Now even if Pune RTO is denying the same and warning dealers, the practice of corruption has continued and no dealer risks challenging it. Even if all dealers were part of a recent meeting with Pune RTO, nobody raised the actual issue and all agreed that they do not pay anything to RTO (which I consider was a huge missed opportunity to stand up against this corruption). Worst part is that even manufacturers like TVS are turning a blind eye towards this and are asking dealers to just deal with any complaints from their own pocket.

The dealer has informed that they have started asking customers to go ahead with the registration process themselves, if they do not want to pay these charges (which is supposedly allowed as per Motor Vehicles Act). I urge all BHPians to avoid paying any such charges and try registering vehicles on their own . This may take additional 1-2 visits to the RTO, but will bring a slowdown to this huge corruption cycle which runs into crores of rupees if the volume of vehicle sales is considered.


The links of the newspaper articles in Sakal (Marathi) and the Indian Express provided below -

http://124.30.219.86/EpaperData/Saka..._1508_2406.jpg

http://124.30.219.86/EpaperData/Saka..._1906_1422.jpg

http://epaper.indianexpress.com/c/28903974

[Mu009]

Originally Posted by Djay

Armed with this update, I raised a complaint with TVS. The dealer manager called me up and after much discussion I received a full refund.

I would say you're quite lucky to have got money back from a stealership without too much of a hassle - no matter the actual amount.

Originally Posted by Djay

However he informed that these are paid to RTO officials as bribes to quickly register vehicles without inspection.

The problem is, over and above the general unethical-ness ubiquitous in India, the dealers use this as an opportunity to fleece us out of yet more money.

Originally Posted by Djay

Now even if Pune RTO is denying the same and warning dealers, the practice of corruption has continued and no dealer risks challenging it. Even if all dealers were part of a recent meeting with Pune RTO, nobody raised the actual issue and all agreed that they do not pay anything to RTO (which I consider was a huge missed opportunity to stand up against this corruption). Worst part is that even manufacturers like TVS are turning a blind eye towards this and are asking dealers to just deal with any complaints from their own pocket.

The dealer has informed that they have started asking customers to go ahead with the registration process themselves, if they do not want to pay these charges (which is supposedly allowed as per Motor Vehicles Act). I urge all BHPians to avoid paying any such charges and try registering vehicles on their own . This may take additional 1-2 visits to the RTO, but will bring a slowdown to this huge corruption cycle which runs into crores of rupees if the volume of vehicle sales is considered.

This is the issue in a nutshell I feel - a majority is bent on taking the path of least resistance, and that's why such a crooked situation prevails. Whether it is the dealers or customers - convenience comes above any notion of ethics.

[tstlnt]

Originally Posted by Djay

I urge all BHPians to avoid paying any such charges and try registering vehicles on their own . This may take additional 1-2 visits to the RTO, but will bring a slowdown to this huge corruption cycle which runs into crores of rupees if the volume of vehicle sales is considered.

Excellent and appreciate your stand with clear conviction and determination.

Last week, I booked Hero Super Splendor in Chennai and as expected, handling charges was added with RTA fees and Road Tax.
Sales staff was helpless and as I was adamant, it was escalated to his Senior. With much of debate, he agreed to compensate it against accessories. When I asked about this swap, he maintained that handling charges was a must as per his management whereas accessories discount was at his discretion.

After your post, I feel that I should have protested as you did.

[Djay]

Originally Posted by Mu009

The problem is, over and above the general unethical-ness ubiquitous in India, the dealers use this as an opportunity to fleece us out of yet more money.

This is the issue in a nutshell I feel - a majority is bent on taking the path of least resistance, and that's why such a crooked situation prevails.

Yes, I am sure dealers will have some cut in this. As per them they operate at wafer-thin margins and anything additional helps. Not sure about this as then why would people be dealers and open multiple showrooms if it was not lucrative.
As you said, most people in India prefer agents / dealers to do their RTO work even if processes are now simplified. But this is slowly changing and I hope the same happens for vehicle registration. Because neither the manufactures nor the dealers can / will do anything to change the system. Its upto us, the end-buyers who need to bring a change by eliminating middlemen.

Originally Posted by tstlnt

Excellent and appreciate your stand with clear conviction and determination.

He maintained that handling charges was a must as per his management whereas accessories discount was at his discretion.

After your post, I feel that I should have protested as you did.

Thanks for your appreciation! It's the numerous such cases on this thread and forum which encouraged me to contribute in this fight. Thanks to Team-BHP and all fellow BHPians!

Even in my case the showroom manager had said it's decided as per the management and not in his hands. Only when I took it up with TVS based on the news reports, did they take action. I believe you took steps and tried from your side! Most people pay the charges without batting an eyelid. I am sure you will definitely do the right thing in your future purchases.

I suggest everyone to quote this attached article in the Indian Express to fight against this corruption all over India.

[Djay]

Mods, would request to please change the name of this thread to something generic like 'Handling Charges by vehicle dealers'. This issue is not restricted to a few states but common all over India. Might give readers a clearer picture and increase awareness about the issue.

Just my two cents!!