[dass]

This has 'Fraud' written in bold letters all over. Fraud with the company you are employed with and is giving you the benefit of favorable tax saving options. If and when this is found out, this will lead to termination. Are you sure you want to go down that path for a car?

Trusting a 3rd party to return your money is hardly the smart thing to do. Do walk away and do it legally when you are closer to the actual date.

[govigov]

Buy the car outright in your wife's name now. In may, sell the car to a used car dealer and then buy it back from them in your name.

[AnandSancheti]

Why don't you allow luck to takeover. New car markets aren't booming any more & 2nd hand space isin't fast moving either & on top of that you have a vehicle that someone very particular like you would buy. What makes you think the seller will find a buyer at the price he is looking at in a hurry, other than you? Blow some steam & let luck take over, I don't see the seller being able to sell in the next 2 months. Then you can do a straight deal with the dealer.

[dog guy]

Originally Posted by Ankit_1208

My question to you all is - How do I proceed with this situation? How does used car dealership commission works in a formal way? - if both seller and buyers are ready (but need the transaction through a registered dealership), how does the actual payment transfer and legalities work.

Do not proceed with it. As others have pointed out, you can definitely get another Octavia when you are actually ready to purchase it through the right means especially in Karnataka. This deal just isn't worth the risk and no document is going to safeguard you completely in case the owner decides to swindle you.

Also, 2% commission just for facilitating the transaction seems a bit high.

[Hayek]

Lots of folks have said this before, but let me reiterate this, “In most companies, what you are proposing would be a firing offence!”

Most companies with car schemes limit them to new cars purely for this reason - since the second hand car market is non transparent and creates opportunities for someone to take a kick back and claim a tax break on money that has not been spent. Your company is being employee friendly by permitting second hand cars through dealers. But such fake dealership schemes clearly violate the reason why second hand cars through dealers alone are permitted. If you did this, it would show you are not trustworthy as well. So don’t. And as a Newbie, please don’t use this account anymore. As we post on Team BHP, people who know us can see through our “anonymous” handles - and if I found out that someone I was considering hiring had even planned such a scheme, that would be enough to disqualify the person.

[OffRoadFun]

Stay away from any such deal, have a peace of mind
And as many pointed, it can even lead to scrutiny in your company"s finance department. Keep in mind, the seller also needs money in all likelihood and a good buyer like you!
Do not trust STRANGERS (actually ANY individual may be apart from immediate family members) when it comes to lending money if you want peace of mind, EVER.

[AsphaltNomad]

The only way I see is that if you really want the car, convince the current owner to wait till May and if thats no possible then walk away. All the best!
P.S> I completely agree that the trust relation between an employee and employer works both ways so stay away from anything that would be very clearly considered as fraud

[aashishnb]

Originally Posted by Ankit_1208

How can I insure that he does this and not cheat me?
Can I get some kind of legal agreement between me, the owner and the dealership? Would really need advise on this.

Assuming you have done all the due diligence required on the car, dealer, etc. amd are sure you want this car and not wait for any other.

Here's how you can do it:

1. One of your relatives buys the car. Full payment to owner & he hands over the car. (Tey and defer this as much as possible, see below).

2. Take delivery immediately & get all forms signed properly. There's some time till which these forms are valid & you can trf car directly to your company (see below).

3. End April, go to the friendly dealer, tell him your family member wants to sell your car to him/her, and buy it from him through your company the next day.

4. Dealers work either on commission basis or buy & then sell.

Company can pay by non account payee cheque to dealer, which dealer endorses to your relative selling & money comes directly to your relative. OR
Company pays to dealer, dealer pays back your relative.

Make the deal worth the dealer's time & effort and compensate him/her properly. Sometimes, they also have incentives for March end and may go farther than normal to help you.

5. This way, car is in your possession from day 1. Worst case, you may have to register car in your relative's name, if anything falls apart. Still, yuo get the car you wanted.

[Asish_VK]

Buying a used car in India is already a huge gamble that requires a lot of luck. In your case, there are additional layers of complexity.

Trusting people with money—even those close to you—is risky. But here, you’re considering handing over your hard-earned money to a stranger and his friend, who happens to be a used car dealer. No offense, but I generally find used car dealers in India to be unreliable.

On top of that, you’re hoping to get your money back only after the company pays them? My advice—drop this plan.

[prnvaa]

I believe folks have been amply clear on this - please stay away.
Loss of time, money, face - are all these worth getting the car? And there is a significant probability of something going south - dealer or seller could change their intentions, your co might find out, something could happen to the car in this interim period…

On a lighter note - this could potentially be a riveting Netflix show with a million things going wrong while exploring the underbelly of the used car market!

[84.monsoon]

Looks like a case study to include in the induction of new hires on ethics and integrity!

As others have pointed out, this will look like a collusion scheme to gain tax benefits for a used car, which you will split with the seller. It is dangerous from some many perspectives, please stay as gar away as you can!

[Ravi Parwan]

Originally Posted by Bhodrolok

You do realize this is just fraud? ...I really hope your org finds out and suitable action is taken.

Originally Posted by Roy.S

...You know that this whole thing veers dangerously close to the illegal as far as your employers are concerned.....

Originally Posted by ike

....Secondly, you are essentially lying to your employer, having the organization pay money to someone and then receiving a kickback as well(that is how it would look to someone investigating this transaction). Where I work, this would be an integrity issue and will have dire consequences.....

Originally Posted by dass

This has 'Fraud' written in bold letters all over. Fraud with the company you are employed with and is giving you the benefit of favorable tax saving options. If and when this is found out, this will lead to termination. Are you sure you want to go down that path for a car?....

Originally Posted by OffRoadFun

...And as many pointed, it can even lead to scrutiny in your company"s finance department.....

Originally Posted by 84.monsoon

....As others have pointed out, this will look like a collusion scheme to gain tax benefits for a used car, which you will split with the seller. It is dangerous from some many perspectives, please stay as gar away as you can!

Originally Posted by AsphaltNomad

...I completely agree that the trust relation between an employee and employer works both ways so stay away from anything that would be very clearly considered as fraud

Ankit, you have been forewarned. This is a multiple levels of crazy scheme. Please do not go ahead with this.

Originally Posted by aashishnb

Assuming you have done all the due diligence required on the car, dealer, etc. amd are sure you want this car and not wait for any other. Here's how you can do it:.....

The tax benefit on this particular car purchase would not be more than 4-5 lakhs, spread out over the next 4-5 years. Effectively 1 lakh per year. Since you mentioned you have the money ready, I am assuming you are well off financially. In that case, why this desperation to take an illegal and dangerous method to save this amount of money?

Plus, it is a buyer's market now and most likely the car will still be available to purchase in May. All this talk of the owner not being able to hold it till May is just bulls***. Somebody who is buying a Mercedes but can't hold onto his car for 2 months??? FRAUD ALERT.
Similar to all those guys selling lemon cars with the caption "owner moving abroad and need to sell ASAP" (apologies to people who move abroad and genuinely sell their cars in a hurry. There is a whole used car scam market, running on your shoulders...)

Originally Posted by Hayek

Lots of folks have said this before, but let me reiterate this, “In most companies, what you are proposing would be a firing offence!”
Most companies with car schemes limit them to new cars purely for this reason - since the second hand car market is non transparent and creates opportunities for someone to take a kick back and claim a tax break on money that has not been spent. Your company is being employee friendly by permitting second hand cars through dealers. But such fake dealership schemes clearly violate the reason why second hand cars through dealers alone are permitted. If you did this, it would show you are not trustworthy as well. So don’t. And as a Newbie, please don’t use this account anymore. As we post on Team BHP, people who know us can see through our “anonymous” handles - and if I found out that someone I was considering hiring had even planned such a scheme, that would be enough to disqualify the person.

As usual, nailed on the head by Hayek Sir. Time to lock and end this thread and move on.

[RROD]

As someone who has been cheated with the promise of returning money, I have learnt my lesson not to trust anyone with your hard earned money.

Unless you’re dealing with a well established bank or a well known/verified source who is largely trusted by public, I would walk away from such deals.

I would say walk away.

[abaliga]

Originally Posted by Ankit_1208

Hi everyone,

This is my first post after scouring the forum for all news about Octavia 2021 L&K model. I appreciate all the owners sharing their detailed and authentic reviews and opinions a out the car.


My company policy kicks in on May and I cannot buy anything before that through my company. I've been looking for an Octavia 2021 model for few months, found 2 - but we're little out of my budget.

I recently found one and would like to buy this c



Because I'm ready to pay the owner through my personal funds and he is ready to sign the transfer documents. My only concern is once I start the process through the dealership and my company processes the payment to the dealer - the owner should return the money back to me.
How can I insure that he does this and not cheat me?
Can I get some kind of legal agreement between me, the owner and the dealership? Would really need advise on this.

Well, the 4th generation Octavia is a relatively rare car, I read somewhere that only 3.5k units were sold in India over 2 years or so, however, I would not get into a messy arrangement as part of the buying process, things can go south very soon!

Regarding the car itself, I own a 2023 example, among the last ones delivered, the car itself is fantastic, I have not faced any major issues, one minor niggle I faced was with the logo projectors on the front doors that came lose, this was promptly replaced under warranty, I have also had 2 cases of rat bites (ABS cable and coolant sensor cable) that were repaired with bud connectors(Skoda approved repair) within a day and the car was returned with no recurring problems whatsoever.

Skoda Mangalore (Tafe access) has been very good till now, throughout my 2 years of ownership they have extended very prompt support. The car itself is fantastic to drive and own, following are some issues reported for this generation car(Note that I did not face any of the below possibly because I own a car from the later batch)

- Drive/Gear selector issue (Warranty replacements done without any problems)
- Glove box not closing on one side(replaced under warranty for many cars from 2021 and 2022)
- Infotainment hanging (intermittent occurrence, some owners have got the infotainment replaced under warranty), note that this one impacts all HVAC functions too
- Engine knocks/jerks reported by many owners for 2.0 tsi, this is most likely courtesy of poor fuel quality (TSI engines are very sensitive), having said this, I haven't faced this problem as I have always filled XP95 or Speed 97 fuel for 95% of the time, regular fuel was filled only on highway trips where we could not find the higher octane fuel

Besides the above known issues, I would say sourcing parts even through the official channels may be a problem in the future considering this is a rare car and most parts are imported, having said that, regular wear and tear parts are stocked by Skoda dealers or are shipped within the country within a couple of days.

Overall, I am sure you'l be very happy with the car as one visit to the redline will make you forget any of the cons , but be very careful with messy deals, there will be no dearth of good cars in the market when you are ready to buy one.

[ajmat]

It's only a car, it's a Skoda, another one will come along at the right time.

Dont risk your career and your wallet for such a deal. Even if everything goes okay, you still spend 2% for no reason and lose interest on the capital for those few months.