Welcome to Mycarhelpline Community Blog

Car Dealer Loot. How to waive Dealer Handling, Logistic Charge

Car Dealer Loot. How to waive Dealer Handling, Logistic Charge

Concerned that your Car Dealer Showroom charging you Handling or Logistic Charge in Several Thousand. Here is How can get Waive this Charge with Tata Car as Example

 

How to get Dealer Handling Charge Waived. Tata Car Real Life Example Shared

When we approach a Car Dealership to Buy Car, Sales Consultant share Quotation having components as

  • Ex-Showroom Price
  • Registration Charge
  • Insurance Premium
  • Logistics Charge
  • Accessories Kit
  • Car Care Kit
  • Warranty, Maintenance Package

There are too many components which just increases the Price of Car.

 

Why the Issue & How to Solve

Many Consumers Faced issue in Past and reported that Dealer is Stating that Its Mandatory to pay for Logistics, to buy Insurance from Showroom only, pay for Warranty and Accessories.

So - once for all we decided to take a stand, and not as any Automobile Journalist, but as a Consumer to see how Difficult is it to get all Excess Charges Waived or how Easy for a Consumer who is a Learned Consumer about Dealer End Practice.

I approached Tata Motor Dealership about recently launched Altroz XE Rhythm Pack worth Rs 5.54 Lakh as Ex-showroom Price shown in, see how it turned expensive to Rs 6.53 Lakh at Dealer Showroom

Surprised, How the Price Increased. Well - its is not a stand alone case of Altroz XE Rhythm, but every Model turns a lot expensive of the price what you see in Papers to the price what you see at Dealer Level

 

As a Consumer important to note about these 3 Components forming Part of Dealer End Price List

  1. Essential Accessories as Mentioned on Price List are 100% Optional
  2. Extended Warranty is also 100% Optional
  3. AMC Maintenance Packages are also 100% Optional

If you wish you can get these removed.

I had a word with Dealer Sales Consultant, and he immediately agreed.

Learning for Consumer: Its your money, all these Packages of Warranty, Essential Accessories, AMC Maintenance are Optional. If you want to avail, then pay, Else Skip. No one can compel you to pay for it

 

Insurance Discretion

Now - Dealer Price Lists shows Tata Motor Insurance at Rs 27,552. Now as per IRDA Rules a consumer can buy Car Insurance through any Agency, any Insurance company, any Product - 3rd Party / Comprehensive / B2B - Bumper to Bumper or B2B with additional Engine Protector Cover

You can definite ask for Covers, Benefits provided and compare with Other Insurance Companies and choose in offering Best Value Proposition.

So we asked Tata Motor Dealership to remove Optional and Insurance will be bought Online directly, and share the Final Quotation other than it

Learning for Consumer: Compare Benefits provided with Covers and compare sale Online. Its your Money. IRDA (Insurance Regulatory Development Authority of India) as Nodal Agency to Insurance companies, clearly defined Consumer Rights

IRDA Car Insurance

 

Logistics Charge (Dealer Handling Charge)

Now as you see in the Quotation - Dealer is charging Logistics Charges

When the Sales Consultant of Dealership called us about receipt of Quotation - I immediately raised that why is Logistic Charge been added in Quotation

Sales Consultant reply was its a Charge towards

  • Transportation Cost from Stock Yard to Workshop
  • Polishing, Cleaning
  • Fuel Filling

Been Explained - The Quotation is charged on Ex-Showroom Price and not Ex-Stockyard Price. 

When the Price is Ex-showroom and not Ex-Stock yard, How can the Dealer charge me Logistics as add on charge over Ex-showroom Price. The Car am going to buy is from Showroom and the Price am paying is Ex-showroom Price which anyway includes everything about Logistics, Cleaning, Polishing etc.

But, Tata Motor Sales Consultant, his Team Leader Denied and replied that its Mandatory to Pay this Logistic Charge of Rs 6250 as per the Quotation 

For Consumers - Refer Notification from Transport Department

https://www.mycarhelpline.com/images/easyblog_images/128/b2ap3_thumbnail_Transport-Deptt-Notice.jpg

 

How this Dealer Handling Charge is Waived

First Email

We sent a Mail to Tata Motor Customer Care Explaining about this 

1. In Quotation as given to buy car (as attached) - the dealer has referred in Ex-showroom Price and not Ex-Stockyard Price - so is incorrect to charge any Logistic charge on over and above Ex-showroom Price 

2. About Indian Express Report dating back to 2012 where if a Dealer charging in name of Polishing, Fuel Filling - Supreme Court Stand

Mail Copy is referred below

 

Follow up Email 

When nothing heard from customer care at almost around 48 hours, escalated by sending email to Tata Motors MD and Zonal Head along with Customer Care with a copy of Previous Email

 

Dealer Confirmation that Handling Charges are Waived

Very same day of Escalating Email - Dealer Team Leader called and said that 'Handling Charges' are waived and sent a Confirmation Email for it

 

No Brokerage Fees on Registration Charges

When we inquired for Breakup of Registration Fees, Dealership referred that as its a NCR based Registration - they are going to charge a small sum towards Brokerage Fees and not going to give it in 'Black and White' as Writing for that Brokerage Fees. 

Which we declined to pay as nothing beyond Official Charges needs to be paid.

Team Leader agreed for same too and offered waiver for Brokerage Charges for Registration, and agreed to charge only Registration Fees as per Official Fees only.

New Cars

Check Prices with Complete Features

Make
Model
 

 

 

Learning For Consumers

  • You are buying a Car on Ex-showroom Price and not Ex-Stockyard Price. How the Question of Logistic Charges appear. refer about - Dealer Handling Charge
  • If you Want to know about Insurance Premium, EMI, Registration Fees head over to Online Car Calculator section on MyCarHelpline, you will get Instant Update on Fees, Charges for your New Car
  • Only Agree for Official Fees

For a consumer, he can save in easily Rs 8000 to Rs 10,000 by following the above Practice.

Remember - Informed Buyer is a Smart Buyer, Do Share this Post on Social Media to help other Buyers to turn to be Informed Buyer

BS6 Hatchback Cars with Rs 50K Discounts in Feb-Ma...
Hyundai Grand i10 Nios Vs Aura. Top 5 Differences ...

Important: If you seek advise or recommendation, pls raise query in Car Forum instead of posting in comments

 

Comments 6

Guest - Kumar Gaurav on Sunday, 29 March 2020 18:22

Dear Sir,

Greetings for the day!!

This is in reference to your feedback shared with Tata Motors regarding Handling charges.

Basis the ruling of Delhi High Court dated 20th April 2012, which was upheld by Supreme Court on 5th Jan 2017, automobiles dealers are entitled to charge handling charges on the overall services which are provided by the dealership. The same ruling was upheld by the Supreme Court as well.

However, these charges are not governed by Tata Motors Ltd, and hence do not come under the Purview of TML.

Handling charges are on account of below mentioned expenses incurred by dealership:

. Stockyard services/ Warehousing charges

. Fuel expenses for bringing the vehicles from stockyard to the location for delivery purpose.

. Fuel expenses for taking vehicle to Registering authority for registration purpose (if required)

. Driver cost towards bringing the Vehicle to concerned location and to RTO

. Fuel provided during delivery of the car

. Re-polishing, waxing, cleaning, checking the vehicle

. Delivery ceremony

. Other expenses incurred towards making the car ready for delivery



These charges are within purview of the Supreme Court & High Court Ruling (Rulings attached)



Please let us know if there is any query .We will be happy to serve you.


What should i do now?? Need your advice on that...

Dear Sir, Greetings for the day!! This is in reference to your feedback shared with Tata Motors regarding Handling charges. Basis the ruling of Delhi High Court dated 20th April 2012, which was upheld by Supreme Court on 5th Jan 2017, automobiles dealers are entitled to charge handling charges on the overall services which are provided by the dealership. The same ruling was upheld by the Supreme Court as well. However, these charges are not governed by Tata Motors Ltd, and hence do not come under the Purview of TML. Handling charges are on account of below mentioned expenses incurred by dealership: . Stockyard services/ Warehousing charges . Fuel expenses for bringing the vehicles from stockyard to the location for delivery purpose. . Fuel expenses for taking vehicle to Registering authority for registration purpose (if required) . Driver cost towards bringing the Vehicle to concerned location and to RTO . Fuel provided during delivery of the car . Re-polishing, waxing, cleaning, checking the vehicle . Delivery ceremony . Other expenses incurred towards making the car ready for delivery These charges are within purview of the Supreme Court & High Court Ruling (Rulings attached) Please let us know if there is any query .We will be happy to serve you. What should i do now?? Need your advice on that...
Guest - Bhavin Thummar on Sunday, 01 March 2020 10:25

Hello sir, I am going to buy a Tata Altroz XT - BS4 Model. The same problem am also suffering with.
They are asking for the handling & processing charge i.e 6500 rupees here at Pune dealership.

I already sent an mail to customer care but didn't get any response.
Can you please share contacts of sales head or zonal head for maharashtra.

Hello sir, I am going to buy a Tata Altroz XT - BS4 Model. The same problem am also suffering with. They are asking for the handling & processing charge i.e 6500 rupees here at Pune dealership. I already sent an mail to customer care but didn't get any response. Can you please share contacts of sales head or zonal head for maharashtra.
Guest - Vikash Kumar on Tuesday, 25 February 2020 10:22

Cloud you Please share the email ids you used for Escalation

Cloud you Please share the email ids you used for Escalation
Admin on Wednesday, 26 February 2020 16:13

@ Vikash Kumar
We cant share Email of concerned official due to privacy reasons
However, I suggest to send email to Customer Care at - customercare@tatamotors.com
If revert not received within 48 hours may again send followup on same, am sure they will allocate to respective Territory sales manager who will do needful

@ Vikash Kumar We cant share Email of concerned official due to privacy reasons However, I suggest to send email to Customer Care at - customercare@tatamotors.com If revert not received within 48 hours may again send followup on same, am sure they will allocate to respective Territory sales manager who will do needful
Guest - Rohit prasad on Monday, 24 February 2020 21:14

Hello sir, I am going to buy a Tata altroz. The same problem am also suffering with. They are asking for the handling & processing charge i.e 5000 rupees here at Jamshedpur dealership.

I have also sent the mail to the customer care service of Tata motors regarding this, but I haven't got any response yet.

So, can you please help me out.

Hello sir, I am going to buy a Tata altroz. The same problem am also suffering with. They are asking for the handling & processing charge i.e 5000 rupees here at Jamshedpur dealership. I have also sent the mail to the customer care service of Tata motors regarding this, but I haven't got any response yet. So, can you please help me out.
Admin on Wednesday, 26 February 2020 16:08

@ Rohit prasad
Ideally a response should be sent in 48 hours. If not, Pl send reminder
Customer Care Team of Manufacturer can not simply ignore it

@ Rohit prasad Ideally a response should be sent in 48 hours. If not, Pl send reminder Customer Care Team of Manufacturer can not simply ignore it
Guest
Thursday, 09 April 2020

Captcha Image