[chncar]

Same kind of stuff is used on the air-conditioned Volvo busses in Chennai City, it seems the ads recover the cost of the bus in 2-3 years.

[Gilead]

I don't think I would put an ad on my car for any price. Hmm on second thoughts, I might consider it if I was offered a LOT of money.

New York yellow cabs carry gaudy ads on the roof. Some even advertise phone sex. A few cabbies did not have the ads and they said it's not worth degrading the car for the money offered.

[Fordmanchau]

Probably, the clause of delivering a vehicle within 48 hrs of giving the notice can be negotitated on the basis of mutual convenience and as early as possible within 1 week. Also the owner of car doesnot have any control on the ads being displayed on the vehicle, this probably should also be negotiated.
Otherwise the agreement looks okay.

[Bouncer]

It’s a good deal overall for one who is ready to display ads on his car.

Not to deject you but to safeguard you from any possible troubles; please consider following points in addition to inputs given by fellow BHPians.

Originally Posted by rakowli

This deal is between Advertising Company and Chevrolet and the owner of the car.

Maybe but then even the car companyis involved in this.

1. As mentioned by you earlier, I see GM/Chevrolet is not party to the agreement and is not involved in any manner whatsoever.

2. You will not be allowed to reject any content display, that’s bad. More so in light of point below.

3. You will be indemnifying the Company (Clause IV) against ANY loss (as detailed therein) arising out of the use of the car by you. What about vice versa? What about any loss, damage, suits, fines, penalties faced by you as a owner of advertising space for putting up any controversial/obscene/legally prohibited content or the one inviting proceedings from any particular Company/ Organisation/ political party or section of society? What if car is targeted physically for displaying any particular content? Is the advertising company indemnifying you? More so if you are not allowed to reject any particular content dispaly.

4. The contract will be terminated for any defaults from your side. What if company defaults in paying you? Paying interest is one thing, but shouldn’t it be terminated if company defaults in paying for certain period, like two months in a row?

5. It’s a business contract of mutual benefit and as such interests of all parties involved must be protected.

I don’t question authority of your lawyer; he/she must be advising you well and working in your best interest, but do discuss these points with your lawyer if you deem fit.

P.S.: I doubt how much the ad company will be willing to alter the agreement clauses.

[dhrishikesh]

Seems to be a good idea. We all should check all the legal matters in the agreement before we should go for it.

[SS-Traveller]

Offhand, a few things come to mind:

1. The car will be a private registration, being put to commercial use. The RTOs will surely have issues with this, since they are losing revenue (perhaps GTO's friend in the Mumbai RTO can confirm).
2. The Municipal Corporation in any city will have have issues with this - they are losing revenue to you.
3. The traffic cops would have issues with this in Delhi (distracting traffic!).
4. The paintwork on the car is likely to be messed up due to the adhesive used to stick the ads, once they are removed. In case of paint damage, who pays after 5 years?
5. What if the ad company stops payment after 1 or two years? You are burdened with the EMIs which you may not have made provisions for earlier.

[AbhiJ]

This looks similar to Car Advertising - Innovative Vinyl Advertisement on Car in India

[rakowli]

i checked with the lawyer, she said the agreement is OK but is against like that kind of deal. She thinks it might be a fraud. but i think even if it is a fraud and if the Ad company vanishes in the future and if i am unable to pay the EMI i can sell off the car and pay of the loan in that case. i can pay the EMI for 2-3 months in that period look out and sell off the car. Becoz of this thing even my dad is now a bit reluntant to get this deal.
i m still waiting for the reply from my frnd who told me about the deal. Maybe he is even trying to find out about the Ad company. Lets hope for the best.
Meanwhile checked with Chevrolet dealer in my area.
Costing is appro. the same which is given to me by the other dealer.
Thane RTO passing: Rs. 369000/- for Spark PS. This is still without discounts. So still some deduction to be done.

[Mayavi]

This is prevalent in US. The ad company rents you high end luxury cars like BMW, Audi for you to drive and you get paid for it. The condition is that the car has to be driven at least 6 miles a day and it will be completely covered with adverts. I have seen Audi TT's and A6 being given away.
Can't find those ads on craigslist now, but a year back they were very common.
I personally will not drive a car with adverts posted on it.

[tanwaramit]

Originally Posted by rakowli

i checked with the lawyer, she said the agreement is OK but is against like that kind of deal. She thinks it might be a fraud. but i think even if it is a fraud and if the Ad company vanishes in the future and if i am unable to pay the EMI i can sell off the car and pay of the loan in that case. i can pay the EMI for 2-3 months in that period look out and sell off the car. Becoz of this thing even my dad is now a bit reluntant to get this deal.
i m still waiting for the reply from my frnd who told me about the deal. Maybe he is even trying to find out about the Ad company. Lets hope for the best.
Meanwhile checked with Chevrolet dealer in my area.
.

Can you sell without NOC from the bank which approved loan ? Please check on that. You might need to clear the dues to bank before selling the car.

Be prepared with worst case scenario of what if this company packs up and runs away, will you be able to handle the aftermath financially, legally, and other other way.

[anekho]

SO this is how the owner of the red mobile store rolls royce payed for it!

anyways interesting proposition - just hope the ads are decent!

cheers

[McLaren Rulez]

Free Car - Get a Free Car

Hmm but only the EMI in India when abroad the car is completely free?

[GTO]

Originally Posted by rakowli

but i think even if it is a fraud and if the Ad company vanishes in the future and if i am unable to pay the EMI i can sell off the car and pay of the loan in that case. i can pay the EMI for 2-3 months in that period look out and sell off the car.

Don't think of this as a zero-risk situation. If the ad company disappears in the first year, you will tend to lose a lot of money on the car. Even if you sell off and pay the remainder of the loan, your down payment and (probably) a couple of EMIs have gone down the drain. The first lot of EMIs do nothing to the principal, its primarily the interest that you are paying.

On the topic of driving around a billboard...sorry, car...well, to each his own. If the scheme were so lucrative, cabbies would have already bitten & exhausted their supply in 24 hours. And yes, the RTOs of some districts can & will take objection to displaying ads.

[rakowli]

i haven't still received any details in the regards of the deal. Maybe as you all are saying there might be some problems or loopholes in this deal. So that friend has also not told me anything in this regards.
Anyways thank you for your inputs and suggestions. i have got some idea if something like this comes in future.

[loving_alaap]

looks like a real stal. worth going for. If after 1 yr, company stops paying, one has to just make an arrangement for repainting the car.