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  1. Prasenjit
  2. RTO Registration & Tax
  3. Saturday, May 07 2022

I have booked Tata Punch on 15th April (paid Rs. 5000) and was told that the vehicle has been allotted on 29th April. The dealer now wants me to pay the full amount.

I read some of the posts in the website mentioning to make payment but hold registration and insurance amount. My question is what are the steps to make sure that the dealer does not register the vehicle before doing PDI ?

Look forward to your response.

Best regards,
Admin Accepted Answer
Dear Prasenjit,

Hi, Sure
See Passenger Car Sector Market dynamics changed offlate, Now is a scenario which is faced by many buyers offlate where dealer showroom take advantage of waiting list as seller market and dictate there own unilateral terms.

The steps which can prevent is to follow ideal booking to Payment delivery process

Step 1. Make Initial Booking with Dealer Showroom with clear breakup of
> Final Receivable Amount (i.e., amount you need to pay against ex-showroom, insurance, registration,
TCS, hp charges, extended warranty, accessories, RSA etc with clear breakup and after applicable
discounts in form of consumer offer, exchange bonus, corporate discount, dealer discounts etc)
> Free Committed Accessories, Packages with Deal Discount clearly referred including Breakup
> Financier HP clearly referred (if on finance)
> Insurance including zero depreciation, engine protection and other add on covers to be offered should
be specified in booking form with premium and IDV value (with name of insurance company to choose
from - if going with dealer showroom)
> Model Variant including Color clearly referred with Tentative delivery Date clearly referred
> Extended warranty with tenure if going for same (optional)
> Cancellation Charges (if any) - although you wont cancel but still better to mention if any such charges
> Also, do mention to sales consultant that you will need VIN before maing further payment and will also do PDI (Pre delivery inspection) before paying off Registration & Insurance Amount and that’s must.

Step 2 - When going with Finance
If going on finance - apply for Car Loan Finance - only when dealer gives you confirmation that car is in
Stock and/or dispatched from Plant or delivery expected in next 2 weeks by submitting necessary
documents for loan approval and post loan sanctioned, dont sign loan disbursement documents till the
time the car in stock.

Step 3 - Wait for Further Payments till time Car arrives in dealer stockyard
Ask for VIN Chassis number, and ensure to always get through Email or through Whatsapp.

Step 4 -, Once VIN number is satisfactory, Ask dealer on when can do pre delivery inspection (as and when car in
You can release in any balance amount as you wish but except
a) Registration Amount
b) Insurance amount
and ask for Pre Delivery Inspection.

If taking finance - you may make balance margin money payment to showroom but except
a) Registration Amount
b) Insurance amount

May sign Loan agreement and other loan kit but dont sign ECS and neither handover Security PDC till
time vehicle inspection is done.

Step 5 - After Vehicle Inspection
Do PDI and After doing a Pre Delivery Inspection of Car, and if to satisfaction release in
> registration amount and
> insurance amount
provided delivery planned within next 5 days at max.

If taking car on finance, release in ECS, security PDC and registration amount and insurance amount to
dealer. Once dealer submit in your ECS and SPDC as final document - bank disburses loan amount to
dealer showroom.

If going with exchange of Old Car - you can now handover Old car to Dealer Showroom too for
adjustment against registration and Insurance.

Step 6 - Take Car Delivery on specified date
Then take delivery on specified date,

Now coming to Query on steps to make sure that the dealer does not register the vehicle before doing PDI ?
A dealer will only register the car once he is in reciept of
> registration & road tax payment
> valid insurance on records

A car can not be registered without insurance policy been issued. Also - if you have not paid for applicable road tax & registration fee - a dealer will never use his own funds to register car - atleast a scenario never ever heard.

So only after doing PDI and if to same satisfactory then only release in RTO fees to dealer showroom.

Hope should help !!

  1. more than a month ago
  2. RTO Registration & Tax
  3. # 1
Prasenjit Accepted Answer
Thanks for replying to my query.

I had some confusion earlier. The total price quoted by dealer is 10.5 lakhs (includes ex-shoroom, road tax, registration, accessories , extended warranty). The total loan requested is 8 lakhs. The dealer wants to make payment of balance amount i.e. 2.5 lakhs before 10th else vehicle will be alloted to someone else.

My question now is should I pay 2.5 lakhs if dealer provides in writing that car will not be registered without the consent of owner/customer? Also, the price quatation does not include insurance and the dealer is fine to have it later. This might further ensure that car cannot be registered as insurance is mandatory.

The dealer has shared VIN number and expect that car will arrive in stockyard next week and I can go for PDI, however the delivery date has not been confirmed (but assuming 5-6 days after PDI)
  1. more than a month ago
  2. RTO Registration & Tax
  3. # 2
Admin Accepted Answer

There are 2 stages of loan
a) Pre Sanction - documents as required for loan approval
b) Post Sanction - documents as required for loan disbursement

I presume your loan is already approved. But Did you signed in ECS Papers and Loan Agreement Kit (as post sanction docs) ?
If yes - I suggest to speak to showroom manager and let him know that you
a) already submitted in loan complete set
b) and ready to make payment equivalent to exshowroom price, accessories and warranty

and post PDI the very same day will issue in registration and road tax payment.
Pls be clear to not to release in RTO Fees in any case, as there been instances where dealer register the car and customer is legft with no say.

Else if loan papers not signed (essentially the post saction documents) - i dont foresee any harm in releasing 2.5 Lakh and let you sign in
a) Loan Post Sanction documents only after doing PDI
b) Gave it in writing to dealer through Email or whatsapp to not to register car before a satisfactory PDI is done by yourself and take there acceptance at time of making payment of this 2.5 Lakh

Hope should help
  1. more than a month ago
  2. RTO Registration & Tax
  3. # 3
Prasenjit Accepted Answer
Thanks again for replying to query.
  1. more than a month ago
  2. RTO Registration & Tax
  3. # 4
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