Cancellation charges on car bookings: Justified or not

Recently I booked Tata Tiago XT CNG at Tejaswi Automobiles, Madhapur, Hyderabad by paying 11k. I specifically asked the sales person if the amount is refundable. He said yes, "Down to last Rupee".

BHPian ksakotai recently shared this with other enthusiasts.

Recently I booked TATA TIAGO XT CNG at Tejaswi Automobiles, Madhapur, Hyderabad by paying 11k. I specifically asked the sales person if the amount is refundable. He said yes, "Down to last Rupee". I wanted a test drive, but there was no car available. And the delivery was estimated to be in 6 to 8 weeks.

I am tending to cancel my booking and to ask for the refund. However, a chance glance at the pricing sheet small print tells me the following:

"A cancellation charge of Rs 1000 will be applicable for any Booking Cancellation"

I know I should have taken the Full Refund undertaking in writing, but one cant always think one would be taken for a ride and dot all i's and cross all t's.

I am going to visit the dealership and ask for the refund. What options do I have if they hold back the Rs 1000?

Krishnan

Here's what GTO had to say on the matter:

In principle, I don't agree with cancellation charges on cars simply because that car (unlike a last minute cancelled airline seat or hotel room) can very well be sold to someone else. Even the Consumer Court has usually been of this opinion that, if the product wasn't taken by the customer, then the booking amount should be refunded in full.

That said, who is going to sue over 1000 - 2000 bucks?

Plus, I remember a Maruti circular to its dealers authorising 500 bucks (or was it 1000) in cancellation fees. OEMs don't do anything without the approval of their in-house legal team, so all I can say is = read the fine print. If you aren't okay with a cancellation fee, take a 100% refund commitment in writing from the dealer. To make a sale, they might give this to you.

Here's what BHPian vinu_h had to say on the matter:

My POV - There is time & money spent in making a booking happen including the several sub manufacturers that are invoked thereafter by the principal OEM to complete the booking. Unless the OEM/dealer made a wrong commitment, which in this case, doesn't appear to be, it is the customer's responsibility to bear the exit cost.

Here's what BHPian AjinkyaP had to say on the matter:

When i was out looking for a new car, i had 3 bookings.

Kia Sonet (25000 booking amount, 100% refundable, in writing by the SA)

Hyundai Venue (21000 booking amount , 3500 cancellation charge clearly mentioned on the booking docket and highlighted by the SA while booking)

Hyundai Venue Acko drive (5000 booking amount, 100% refundable, clearly mentioned on the booking page)

I think its the responsibility of customer and moreover of SA to reiterate cancellation policy during booking process.

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