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MG Dealer won't sell me Gloster if I dont buy their insurance

I would actually have paid that but I felt that they would come up with another roadblock since I never felt they wanted to sell the car at that point.

astrodex recently shared this with other BHPians.

I had a very strange car buying experience that had me question how much money does a dealer make when they sell insurance?

I had booked a Gloster (Sharp 7-seat Variant) in October 2020 and was promised delivery by early December. Since it was a new car, they were not offering any discounts. During booking, I was clear to mention that it was going to be a company booking and the quotation etc was all made in the company name with additional road tax. I had approached my bank for loan and they offered me an attractive rate, provided I take the bank's insurance. Since it was coming to be cheaper than what the dealership offered, I agreed and didn't think much about it.

Come December and the dealership could not get the car yet. They offered me a Savvy 6-seater in a different color that was readily available. Since I wanted a new car for my upcoming drive, I agreed to pay full price. They sent me the updated quote and I got the bank loan amount updated. Everything was good and I went there to do the paperwork and then things went awry. The moment I told them that I was doing insurance and financing from HDFC (which I had told the sales guy before, but apparently the sales manager did not know) there was a perceptible change in their demeanour and they kept requesting me to take their insurance.

Long story short, they finally asked for another Rs 5,000/- additional in cash for RTO and when I refused, they said their management could not approve the sale. It all felt surreal that these guys didn't want to sell a car, since I really didn't initially think too much about insurance. Anyway, I walked away from the deal and even put in a request to refund my money.

I still can't believe they would cancel a 44 lakh car sale for Rs 5,000/-.  I would actually have paid that but I felt that they would come up with another roadblock since I never felt they wanted to sell the car at that point. I thought they never had the car in stock, but I got confirmation later that they indeed had it in their yard. So I was wondering how much money do these guys make for insurance (and/or financing). And why would they deny a car sale just because of it. It is also a marketing loss, since I, as a customer, am put off on the MG brand now.

Any ideas how much the insurance gets them? Are such experiences common?

Thanks to astrodex once again! Check out BHPian comments for more insights & information.

 
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