[mithun]

Recently when hunting for a scooter for my wife, I found that sub-dealers especially in the rural areas are giving better deals when compared to the Main Dealers in the cities.

I understand that this is due to the less leads in rural areas, but I've also found difference in:

• Customer Service
• Total Cost
• Up-selling of additional accessories/fittings
• Negotiation margin

1. Is there any disadvantage in buying(not servicing) from a Sub dealer?
2. So which one do you prefer, Main or Sub dealer?

[sumitdongerkery]

I would always prefer a main dealer over sub dealers. Probability of main dealer misleading you in terms of variants, cost break ups, offers, etc is low compared to a sub dealer. Also companies would own up or respond to goof ups made by their authorized dealer but not for sub dealers. Only advantage i see of a sub dealer is he might be able to deliver a vehicle quicker than the authorized dealer for vehicles which have waiting period

[mithun]

Originally Posted by sumitdongerkery

I would always prefer a main dealer over sub dealers. Probability of main dealer misleading you in terms of variants, cost break ups, offers, etc is low compared to a sub dealer. Also companies would own up or respond to goof ups made by their authorized dealer but not for sub dealers. Only advantage i see of a sub dealer is he might be able to deliver a vehicle quicker than the authorized dealer for vehicles which have waiting period

Thanks. But If I'm well informed and have done my homework, is there any issue?

Also sub dealers are listed in almost all of the two wheeler sites along with the main dealers.

[libranof1987]

When buying a new car, no substitute to the authorized (main) dealer.

The discount is not worth the trouble if something goes wrong.

Originally Posted by mithun

[*]Is there any disadvantage in buying(not servicing) from a Sub dealer?

Warranty claims could be a major hassle since you would eventually end up at the dealer for repairs.

I remember, a luxury car maker had a while back issued a statement that Big Boy Toyz (a luxury/premium car sub-dealer) in Gurgaon are not their authorized dealer and hence the originality of the cars delivered by them could not be guaranteed.

[sumitdongerkery]

Originally Posted by mithun

Thanks. But If I'm well informed and have done my homework, is there any issue?

Also sub dealers are listed in almost all of the two wheeler sites along with the main dealers.

That would be fine but that still doesn't reduce the risk. I have one of my known who has picked up an i10 from a sub dealer and is still following up to get the car registered. He has done the complete payment including tax and registration charges but took the delivery without registration just because it was an auspicious day. Its been 2 weeks now and he is still following up for getting the car registered. Now reasons could be anything but you will not face these kind of issues with main dealers.

[R-Six]

Hi Mithun,

I wouldn't suggest picking up a vehicle from the sub dealer either. While they might give you a better rate than the authorized dealer in town, we have had multiple stories of them replacing OEM parts with sub standard ones before delivering the vehicles to the customer.

IIRC, there was a post about this on the forum (unable to locate it right now though).

Cheers,
R-Six

[abhishek46]

Originally Posted by mithun

]So which one do you prefer, Main or Sub dealer?

I had purchased my HH Hunk back in 2008 from a Sub Dealer.
I had no idea during purchase that it a sub dealer. It was only when I looked at the invoice etc, that I realized that it was a sub dealer.

Over 8 years of ownership, there were no issues with service & spares. I found the quality of service to be better at the Sub Dealer outlet.

[mithun]

Originally Posted by R-Six

I wouldn't suggest picking up a vehicle from the sub dealer either. While they might give you a better rate than the authorized dealer in town, we have had multiple stories of them replacing OEM parts with sub standard ones before delivering the vehicles to the customer.

But if they are caught, it would cause cancellation of their dealer's license. Why take such a big risk nowadays?

Originally Posted by sumitdongerkery

That would be fine but that still doesn't reduce the risk. I have one of my known who has picked up an i10 from a sub dealer and is still following up to get the car registered. He has done the complete payment including tax and registration charges but took the delivery without registration just because it was an auspicious day. Its been 2 weeks now and he is still following up for getting the car registered. Now reasons could be anything but you will not face these kind of issues with main dealers.

Sub-dealers are listed in their official sites of 2 Wheeler companies which means that they are authorized like the main dealers, right?

[mithun]

Finally bought Yamaha Ray from a main dealer in the city.

The main dealer was more professional and provided better discounts than the sub dealer.

[aashishnb]

Hi All,

I've been looking to buy a new scooter to replace my 8 year old Access.

I got quotes from a reseller (not brand authorized dealer) - who gave me quotes for scooters of 3 brands.

The reason I went to him is because some time ago, a friend of mine bought a vehicle from him cheaper than the dealer. Even now, the quote that this guy is giving me is lower than that of the authorised dealer (have checked with only 1 brand yet, will be checking with the others). The difference is in the range of 7-9% (Rs. 5000 - 7000).

Can anyone throw any light on how this is possible? Does the reseller get some extra commission? Does he pick up non-moving inventory? Does he sell vehicles that have some problems?

Would be great to understand his economics just to make sure that as a buyer, I'm getting the same product.

[Nikhil Paradkar]

Originally Posted by aashishnb

Hi All,

I've been looking to buy a new scooter to replace my 8 year old Access.

I got quotes from a reseller (not brand authorized dealer) - who gave me quotes for scooters of 3 brands.

The reason I went to him is because some time ago, a friend of mine bought a vehicle from him cheaper than the dealer. Even now, the quote that this guy is giving me is lower than that of the authorised dealer (have checked with only 1 brand yet, will be checking with the others). The difference is in the range of 7-9% (Rs. 5000 - 7000).

Can anyone throw any light on how this is possible? Does the reseller get some extra commission? Does he pick up non-moving inventory? Does he sell vehicles that have some problems?

Would be great to understand his economics just to make sure that as a buyer, I'm getting the same product.

Hey Hi! Being worked with a Honda Cars Dealership I want to clarify some things, there are a lot of misconceptions related to Direct Sales Agents (DSA) or reseller as many call them, DSA usually DO NOT give problematic or any defective piece, it is always the same which is available with the showrooms, infact DSA have tie-ups with their showrooms and pickup vehicles from there, his income is based on following parameters:

1. Dealer gives commission to the DSA for selling his inventory.

2. DSA only pick's up vehicles from showroom stockyard, rest everything is done by DSA.

3. DSA does the insurance which if not demanded is a bit cheaper than showroom, which is usually because he skips nil dep cover, and few other components are missing, not every DSA does it but majorly this is why the cost is different, just get the insurance checked for all the components, also showrooms have their insurance tie-up with the manufacturer to provide some sort of exclusive benefit, like nil dep cover can be taken till 5 years as compared to 3 years with other insurance policies, when DSA does the insurance he gets the Set back from insurance company and he can give that as a benefit to the customer to be more competitive.

4. DSA does the registration, you must have noticed that it takes a lot of time for vehicles to get registered when bought from DSA's especially 2 wheelers because he waits for those many vehicles to get sold and then sends the papers to RTO through a single agent which helps him get a lot discount.

5. DSA gives his own accessories which are very CHEAP as compared to the one's from the showroom, he not only makes great margins from those but those are cheap in quality and cost as well, just check what kind of helmet, cover, keychain, guards, seat covers, handle grips, number plate, body cover the showroom is giving and DSA is giving, you will get to know the difference, two wheeler DSA majorly give competitive rates based on accessories parameter.

6. Last but not the least, whatever discount the end customer gets after negotiation, DSA is bound to get atleast 10% more discount from the showroom as they do regular business with them.

7. Also beware some of the DSA (especially new one's) are fraudulent also, they will just buy a special number for your two wheeler, get the number plate installed, won't give the registration documents saying it takes time and stuff, and might be after 2-3 months of operations they are fled away!

So just make sure all components are the same for insurance, the quality of accessories is good, DSA is trusted or been there for quite a time, then you might want to go with DSA as they will provide the vehicle the same day itself with a suggestion of not taking it outside, just using it in local till the number arrives, but the showroom guy won't deliver until you get a proper registration number.

I hope I was able to help you with my experience.

[libranof1987]

Originally Posted by Nikhil Paradkar

Hey Hi! Being worked with a Honda Cars Dealership I want to clarify some things

Most importantly: does the manufacturer view the vehicles sold via a DSA differently than those from their authorized dealer. Esp. from a warranty coverage point of view.

[Nikhil Paradkar]

Originally Posted by libranof1987

Most importantly: does the manufacturer view the vehicles sold via a DSA differently than those from their authorized dealer. Esp. from a warranty coverage point of view.

No nothing like that, every customer is the same, be it via DSA or direct, the service centre has to cater to every customer and it doesn't see from where the car is, so for greater good, all the cars are same and if any defect comes up it is purely badluck, all the proceedings are same for both, external or prominent damages are checked when the vehicle is landing in the stockyard, even when the DSA pick's up the vehicle from dealer stockyard it undergoes PDI (Pre Delivery Inspection) so none of any problems there, these rumours of defective vehicles given by DSA is done by dealer themselves as DSAs are competition to dealers as they provide competitive prices as discussed in previous post.

No, the manufacturer doesn't even know that who sells the car, infact every vehicle is delivered to a DSA is properly taken through the delivery process in the systems and then given to DSA, so to the manufacturer it is delivered via dealer itself. Also if you check neatly the documents which you recieve, like main Invoice, Extended Warranty details, etc are on dealer's letterhead , while other subsidiary documents are from DSA the main documents will always be from dealer.

All the above is from my experience with a very honest and professional Dealership of Honda, and the DSAs experience was also of very big players in the market who deal professionally and honestly, rest dishonest and unprofessional dealers and DSAs don't fit in my above described operating process.

[androdev]

In a big city, there are so many two wheeler authorised dealers so I am sure one should be able to find a very competitive quote. I think resellers operate in areas where access to main dealers is limited or they are more 'flexible' with financing.

From economics point of view, resellers can at best give you a part of the cut they get from their supplying dealer which should not be much. If there is a lot of discount, then there will surely be a catch.

The deal breaker for me would be trust and accountability issues. Who do you escalate to in case something goes wrong?

[GTO]

Thanks but no thanks. If I'm spending big money on anything, I'll stick to authorised dealers only. It's buying myself some peace of the mind. Heck, forget something as important as a two-wheeler, even if I'm getting a smartphone, I stick to the authorised shops only (last phone I bought was directly from Samsung and prior to that, Vijay Sales).

The only time I'll buy from a DSA is if the actual delivery is from the authorised showroom itself.