Query on Car Discounts & Insurance

ashwin390 · 26th December 2007, 14:48

Guys,

About a month ago, there was an Ad in the TOI, wherein the Esteem Vx was advertised for 3.7L Rs ex-showroom.

A friend of mine was interested in this, so we walked into the Bimal Motors on 100ft Road, Indiranagar to find out more.

Well, it seems that the price of the car is 4.2L ex-showroom, but with discounts - not freebies, but actual cash discounts - of about 50K, the price came down by 50K, post registration. And here is where the weird part starts. Just out of curiosity, we asked about the car insured value, and we were told that the insured value would still be 4.2L only.

So, just to make sure we understood him correctly, we categorically asked him, and he told us that the car would be insured for 4.2L, while we would have to pay 3.7L to purchase it. When asked why, he said that the last time they tried to have the car registered for the price of 3.7L, the RTO had some issues with this.

Now, if i am not mistaken, will it no constitute insurance fraud, if you insure your vehicle for a price higher than its actual value?

Also, if the discount was being given after registration, then the car was still being registered at the invoice value of 4.2L. So, taxes and insurance were calculated for 4.2L, where as, if the ex-showroom price was being reduced to 3.7L, the tax and insurance would be lower. So, the actual on road price would be lower than (4.2L + tax+ insurance)-50K.

Also, Maruti would be violating all sorts of laws be advertising incorrectly.

Can someone please throw more light on this??

Joy · 1st September 2009, 19:23

I was looking for a VFM car below 4 lakh OTR. After going though various threads in team-bhp, shortlisted Spark. After visiting Dhulichand Motors, I got an initial quote of around Rs. 3.51 lakh on road for metallic. After scouting some more and bargaining, I got a final quote of Rs. 3,46,576/- on road with mud flaps and mats thrown in. Discounts offered Rs. 50,000/-. Since, I am into business so no corporate discount for me.

After going through a post in Initial Ownership report of SPARKled today. I got confused as he got it for Rs. 3.32 lakh on road. (Thread Link: http://www.team-bhp.com/forum/test-d...-ls-spark.html).

I checked chevvy spark website and found that in Kolkata, the ex-showroom price is Rs. 3,50,377/- (non metallic) and in Navi Mumbai, the same is Rs. 3,66,469/- (non metallic).

Can anybody confirm me if this price is ok or not? Is there any scope for any better deal in terms of price and/or freebies.

Please help me guys as I will be buying it next week (already gave an advance of Rs. 10,000/-).

Thanks in advance.

Joy · 1st September 2009, 22:18

Guys, please help. I am really very confused. Please please help.

AirWind · 2nd September 2009, 10:53

@ Joy: Are you taking up registration on your name or your company? There is a difference in road tax between individual and company registrations.

I assume the black is classified non-metallic, so watch that difference.

Quote:

Originally Posted by Joy

I was looking for a VFM car below 4 lakh OTR. After going though various threads in team-bhp, shortlisted Spark. After visiting Dhulichand Motors, I got an initial quote of around Rs. 3.51 lakh on road for metallic. After scouting some more and bargaining, I got a final quote of Rs. 3,46,576/- on road with mud flaps and mats thrown in. Discounts offered Rs. 50,000/-. Since, I am into business so no corporate discount for me.

After going through a post in Initial Ownership report of SPARKled today. I got confused as he got it for Rs. 3.32 lakh on road. (Thread Link: http://www.team-bhp.com/forum/test-d...-ls-spark.html).

I checked chevvy spark website and found that in Kolkata, the ex-showroom price is Rs. 3,50,377/- (non metallic) and in Navi Mumbai, the same is Rs. 3,66,469/- (non metallic).

Can anybody confirm me if this price is ok or not? Is there any scope for any better deal in terms of price and/or freebies.

Please help me guys as I will be buying it next week (already gave an advance of Rs. 10,000/-).

Thanks in advance.

SPARKled · 2nd September 2009, 12:34

@Joy: Yes the final amount I paid for my Spark LS is 3.32 odd and I will get you the break asap. As AirWind has commented about the black color being a non metalic color I got 5k off on this. I got 40k dealer/GM discount, 10K exchange discount (just needed the RC book of my Ford Ikon), 5k corporate discount for my company, 4k additional corporate discount for my dad's company and some more discount from the dealer who really really wanted to sell us the car.

Joy · 2nd September 2009, 12:34

Car will be registered in my name only. Even if black is considered non-metallic, it will increase by Rs. 5k (approx.) which takes it to Rs.3.37 lakh.

Registration charge here in kolkata in Rs. 32k and I am getting insurance for around Rs. 8.1k. Is registration in Navi Mumbai less?

I could not figure out why so much difference? Please help.

Thanks in advance.

Dante · 2nd September 2009, 12:52

Quote:

Originally Posted by Joy

Car will be registered in my name only. Even if black is considered non-metallic, it will increase by Rs. 5k (approx.) which takes it to Rs.3.37 lakh.

Registration charge here in kolkata in Rs. 32k and I am getting insurance for around Rs. 8.1k. Is registration in Navi Mumbai less?

I could not figure out why so much difference? Please help.

Thanks in advance.

In maharashtra, Bombay has the highest tax rate. So registeration would be higher than other cities.

But i am not sure about kolkata and Bombay. But why do you compare? As it is, its not viable for you to register the car in Bombay and then drive in kolkata.

SPARKled · 2nd September 2009, 13:35

@Joy: AFAIK the exchange offer discount is now removed and the only discount now available is the 47K given by the dealer/GM. So take another 3K and you reach 3.34 which is pretty close to what I paid. IMHO I think you are getting a good deal so don't fret over 2-4K here and there.

SPARKled · 2nd September 2009, 15:23

In addition to my earlier reply, the 3,66,469 is for Mumbai and looks like the Chevy website incorrectly lists Navi mumbai as also having the same price. However if you check the price for LS at Thane/Vashi the price is 349088 which I believe is the correct price.

Joy · 2nd September 2009, 19:33

@SPARled - Thanks for clearing my doubts. The website has confused me.

@Dante - Thanks. I am not considering registering in Mumbai and drive back. I am just enquiring why such difference in price?

Anyway, my confusion is solved. Hopefully, will get my car by next week.

Can anyone give me any idea of the colour platinum metallic? Among Black, Topaz, Platinum Metallic (my shortlisted colours). Which colour looks best in spark with beige interior?

Thanks in advance.

SPARKled · 3rd September 2009, 11:17

Black looks pretty neat as the ac vents, the central instrument cluster, the knobs cluster, the door opening handles, door locks all are black so the beige and black combo works quite well. However Black is a difficult color to maintain.

idea1979 · 3rd September 2009, 11:31

Quote:

Originally Posted by SPARKled

@Joy: Yes the final amount I paid for my Spark LS is 3.32 odd and I will get you the break asap. As AirWind has commented about the black color being a non metalic color I got 5k off on this. I got 40k dealer/GM discount, 10K exchange discount (just needed the RC book of my Ford Ikon), 5k corporate discount for my company, 4k additional corporate discount for my dad's company and some more discount from the dealer who really really wanted to sell us the car.

This is going to be a interesting discussion. Ultimately we may end up into a universal car pricing/negotiation guide (not sure if we have the same like PDI guide

).

I am not sure, can you get corporate discount TWICE? how did you manage this? please do elaborate.

@joy

I am also going through the same phase. You might find break up given in my thread useful.

http://www.team-bhp.com/forum/hatchb...ml#post1458022

ikoneer · 3rd September 2009, 11:42

@ashwin, i think they will charge on the Ex-showroom price only as the discount amounts could change time to time.

I have also noticed that any discounts provided in shops/hotels are normally computed with the original amount + the applicable taxes, minus the discount on the Original amonunt (before tax). They have said it will be done this way only.

On the brighter side, if you register at a lower value, your car will depreciate much faster and claims could also be at a lower value, it's better to register at the ex-showroom price.

SPARKled · 3rd September 2009, 13:10

Quote:

Originally Posted by idea1979

This is going to be a interesting discussion. Ultimately we may end up into a universal car pricing/negotiation guide (not sure if we have the same like PDI guide

).

I am not sure, can you get corporate discount TWICE? how did you manage this? please do elaborate.

I was surprised at this too but the salesman wanted to include the additional discount under some head. So he took my company Id as well as my dad's company Id (I guess it helped because my dad is currently employed with an another Automobile dealership in Navi Mumbai) and gave me a total corporate discount of 5k + 4k. I guess this must work in the same was as an exchange bonus where you dont really have to exchange your car and only provide the RC book. I am not even sure if he actually applied the additional corporate discount at all, but as long I got the additional discount I was happy.

Joy · 5th September 2009, 22:57

Thanks, nice input. @SPARKled : Me too got stunned getting two corporate discounts. But anyway, at least you got a decent deal. That's very heart warming.

@idea1979 : Have you taken the delivery of your car? Please update.

For me, HDFC Bank is taking much longer than initially committed. I don't what to do. Any suggestion would be welcome.

26th December 2007, 14:48	#1
ashwin390 BHPian Join Date: Jul 2007 Location: Bangalore Posts: 32 Thanked: 2 Times	Query on Car Discounts & Insurance Guys, About a month ago, there was an Ad in the TOI, wherein the Esteem Vx was advertised for 3.7L Rs ex-showroom. A friend of mine was interested in this, so we walked into the Bimal Motors on 100ft Road, Indiranagar to find out more. Well, it seems that the price of the car is 4.2L ex-showroom, but with discounts - not freebies, but actual cash discounts - of about 50K, the price came down by 50K, post registration. And here is where the weird part starts. Just out of curiosity, we asked about the car insured value, and we were told that the insured value would still be 4.2L only. So, just to make sure we understood him correctly, we categorically asked him, and he told us that the car would be insured for 4.2L, while we would have to pay 3.7L to purchase it. When asked why, he said that the last time they tried to have the car registered for the price of 3.7L, the RTO had some issues with this. Now, if i am not mistaken, will it no constitute insurance fraud, if you insure your vehicle for a price higher than its actual value? Also, if the discount was being given after registration, then the car was still being registered at the invoice value of 4.2L. So, taxes and insurance were calculated for 4.2L, where as, if the ex-showroom price was being reduced to 3.7L, the tax and insurance would be lower. So, the actual on road price would be lower than (4.2L + tax+ insurance)-50K. Also, Maruti would be violating all sorts of laws be advertising incorrectly. Can someone please throw more light on this??
	() Thanks

1st September 2009, 19:23	#2
Joy BHPian Join Date: Aug 2009 Location: Kolkata Posts: 305 Thanked: 26 Times	Price of Spark LS in Kolkata? Is it ok? I was looking for a VFM car below 4 lakh OTR. After going though various threads in team-bhp, shortlisted Spark. After visiting Dhulichand Motors, I got an initial quote of around Rs. 3.51 lakh on road for metallic. After scouting some more and bargaining, I got a final quote of Rs. 3,46,576/- on road with mud flaps and mats thrown in. Discounts offered Rs. 50,000/-. Since, I am into business so no corporate discount for me. After going through a post in Initial Ownership report of SPARKled today. I got confused as he got it for Rs. 3.32 lakh on road. (Thread Link: http://www.team-bhp.com/forum/test-d...-ls-spark.html). I checked chevvy spark website and found that in Kolkata, the ex-showroom price is Rs. 3,50,377/- (non metallic) and in Navi Mumbai, the same is Rs. 3,66,469/- (non metallic). Can anybody confirm me if this price is ok or not? Is there any scope for any better deal in terms of price and/or freebies. Please help me guys as I will be buying it next week (already gave an advance of Rs. 10,000/-). Thanks in advance. Last edited by Jaggu : 1st September 2009 at 20:17. Reason: Please continue here. Thanks
	() Thanks

1st September 2009, 22:18	#3
Joy BHPian Join Date: Aug 2009 Location: Kolkata Posts: 305 Thanked: 26 Times	Guys, please help. I am really very confused. Please please help.
	() Thanks

2nd September 2009, 12:34	#5
SPARKled Senior - BHPian Join Date: Aug 2009 Location: Navi Mumbai Posts: 1,110 Thanked: 660 Times	@Joy: Yes the final amount I paid for my Spark LS is 3.32 odd and I will get you the break asap. As AirWind has commented about the black color being a non metalic color I got 5k off on this. I got 40k dealer/GM discount, 10K exchange discount (just needed the RC book of my Ford Ikon), 5k corporate discount for my company, 4k additional corporate discount for my dad's company and some more discount from the dealer who really really wanted to sell us the car.
	() Thanks

2nd September 2009, 12:34	#6
Joy BHPian Join Date: Aug 2009 Location: Kolkata Posts: 305 Thanked: 26 Times	Car will be registered in my name only. Even if black is considered non-metallic, it will increase by Rs. 5k (approx.) which takes it to Rs.3.37 lakh. Registration charge here in kolkata in Rs. 32k and I am getting insurance for around Rs. 8.1k. Is registration in Navi Mumbai less? I could not figure out why so much difference? Please help. Thanks in advance.
	() Thanks

2nd September 2009, 13:35	#8
SPARKled Senior - BHPian Join Date: Aug 2009 Location: Navi Mumbai Posts: 1,110 Thanked: 660 Times	@Joy: AFAIK the exchange offer discount is now removed and the only discount now available is the 47K given by the dealer/GM. So take another 3K and you reach 3.34 which is pretty close to what I paid. IMHO I think you are getting a good deal so don't fret over 2-4K here and there.
	() Thanks

2nd September 2009, 15:23	#9
SPARKled Senior - BHPian Join Date: Aug 2009 Location: Navi Mumbai Posts: 1,110 Thanked: 660 Times	In addition to my earlier reply, the 3,66,469 is for Mumbai and looks like the Chevy website incorrectly lists Navi mumbai as also having the same price. However if you check the price for LS at Thane/Vashi the price is 349088 which I believe is the correct price.
	() Thanks

2nd September 2009, 19:33	#10
Joy BHPian Join Date: Aug 2009 Location: Kolkata Posts: 305 Thanked: 26 Times	@SPARled - Thanks for clearing my doubts. The website has confused me. @Dante - Thanks. I am not considering registering in Mumbai and drive back. I am just enquiring why such difference in price? Anyway, my confusion is solved. Hopefully, will get my car by next week. Can anyone give me any idea of the colour platinum metallic? Among Black, Topaz, Platinum Metallic (my shortlisted colours). Which colour looks best in spark with beige interior? Thanks in advance.
	() Thanks

3rd September 2009, 11:17	#11
SPARKled Senior - BHPian Join Date: Aug 2009 Location: Navi Mumbai Posts: 1,110 Thanked: 660 Times	Black looks pretty neat as the ac vents, the central instrument cluster, the knobs cluster, the door opening handles, door locks all are black so the beige and black combo works quite well. However Black is a difficult color to maintain.
	() Thanks

3rd September 2009, 11:42	#13
ikoneer BHPian Join Date: Aug 2007 Location: chennai Posts: 486 Thanked: 14 Times	@ashwin, i think they will charge on the Ex-showroom price only as the discount amounts could change time to time. I have also noticed that any discounts provided in shops/hotels are normally computed with the original amount + the applicable taxes, minus the discount on the Original amonunt (before tax). They have said it will be done this way only. On the brighter side, if you register at a lower value, your car will depreciate much faster and claims could also be at a lower value, it's better to register at the ex-showroom price.
	() Thanks

5th September 2009, 22:57	#15
Joy BHPian Join Date: Aug 2009 Location: Kolkata Posts: 305 Thanked: 26 Times	Thanks, nice input. @SPARKled : Me too got stunned getting two corporate discounts. But anyway, at least you got a decent deal. That's very heart warming. @idea1979 : Have you taken the delivery of your car? Please update. For me, HDFC Bank is taking much longer than initially committed. I don't what to do. Any suggestion would be welcome.
	() Thanks