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  1. Sumit
  2. New Cars, Reviews
  3. Tuesday, January 13 2015
Every car dealer is charging rs 7000 to 8000 in name of Logistics, dealer handling or car cleaning and delivery charges. Is it legal to ask for as Supreme Court has given a judgement long back that this is not to be paid
How can the dealer can even ask for these. Are all customer paying same
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Admin Accepted Answer
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Pl find below Posts for Dealer Handling Charge Waiver
> Court Judgement -
https://indiankanoon.org/doc/14247221/

> Telangana Commissioner - (check 7th Reply)
> Mid Day -
https://www.mid-day.com/articles/south-mumbai-businessman-secures-landmark-order-for-mumbai-car-buyers/18680187

> Times of India -
https://timesofindia.indiatimes.com/city/surat/RTO-warns-car-dealers-on-illegal-charges/articleshow/48832904.cms
  1. more than a month ago
  2. New Cars, Reviews
  3. # Permalink
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I have purchased Renault make Kwid Climber Car in January 2020 from Unnati Vehicles Pvt. Ltd., Wadi, Nagpur. At the time of booking the executive of the dealer promised that the said car is BS6 norms. But after purchasing the said car I was noticed that the said Car is BS-4 norms also dealer has been taken extra charges by me approx. Rs.25,000/- in the name of RTO, Insurance and Handling/Logistic charges etc. The brochure/pamphlet/booking form or any other documents of the company/dealer show room, nowhere mentioned about important Environmental regarding BS6 or BS4 norms. The said dealer deceived/cheated me as well as other customers. I had complained about the same to the company, well as dealer but the executive of the renault company takes dealer favour not customers. I am not satisfied from company customer services. Thereafter I have served a letter to the dealer of Renault Cars for providing BS6 norms vehicles in stead of BS4 and return approx. Rs.25,000/- additional charges which is paid by me.
Please provide me your valuable guidance.
Manoj Shende
7767043639


  1. more than a month ago
  2. New Cars, Reviews
  3. # 1
Prem Khare Accepted Answer
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Sir,
Hope you are doing well & taking care of your self in this covid 19

This is Prem from Bhopal, Madhya Pradesh.

There are couple of point which i need to share with you and need your expert advice as well.

I visited nearest showroom of Hyundai to buy Creta E 2020, they are asking me to pay Rs 3000 for logistic charge and Rs 5000 Agent fee, when i refused to pay that amount after an hour of discussion then the dealer told me that they are not going to sell the vehicle. This charges are mandatory and you have to pay.

I asked them to give me in written that logistic charge and agent fees are legal but they are not ready to give me in written.

I told them i will buy insurance from market and agent keep forcing me to take Hyundai insurance. They told me if you do not buy the insurance from Hyundai then we will not cell the vehicle.

Please see the below breakup:
Ex showroom: 999000
RTO: 110610
Handling charge: 3000
VAS: 5000
Accessory: 5000
Insurance: 57302
ASS kit: 28568
RSA: 1889

Total: 1207369

I asked for the RTO breakup
RTO 110610
Tax 99900
RC Fees 600
Smart card 200
Trade Fees 1000
Hypothication Charge 1500
online Fees 31.86
Web Fee 42.48

AGENT FEES: 5000

Total: 108274

I asked agent earlier RTO rate you shared with me that was 110610 and when i asked for breakup of RTR the rate is 108274. Difference of almost 2 k then agent told me 2k is dealer margin.
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  1. more than a month ago
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  3. # 2
Sandhya Accepted Answer
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Respected Sir, I have already booked my car tats altroz XE on 10/2/2020.i complained to the authority but crm sent me below statement. Basis the ruling of the Delhi High Court dated 20 April 2012, automobile dealers are entitled to charge handling charges on the overall service which are provided by the dealership. The same ruling was upheld by the Supreme Court as well.



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



· 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

· Transit risk insurance from dealer stock yard to showroom

· Fuel provided during delivery of the car

· Re-polishing, waxing, cleaning, checking of 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)

What I do after that. Please reply
  1. more than a month ago
  2. New Cars, Reviews
  3. # 3
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Sir, I purchase a grand i10 asta and dealer charge me many more charges i.e. Handling charge-3000,T/p charge-3500,and registration charge extra. Please suggest me how to collect excess charge by dealer
  1. more than a month ago
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  3. # 4
Shantanu thorat Accepted Answer
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Tata motors deogiri auto mumbai are still charging 9.5k from me after purchasing hexa xt from them already lodge complain to tata motors bt no response if thy charge thn wil complain to rto and consumer court


  1. more than a month ago
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  3. # 5
james Accepted Answer
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I purchased Honda amaze from Honda vision, Kerala

Dealer charged 6000/ as handling charges.I claimed back but not refunded.I contacted MD Honda India,Noida. Not settled but supporting dealer.

When I verified sale tax invoice on my vehicle They quoted a different Ex show room price.They collected 6,57 000/ from me as Ex show room Price.But in sale tax invoice Ex show room Price is only 6,16,000/. Dealer cheated me as well as the Government of Kerala.Matter communicated to Honda company.Dealer offered me 100000/- to settle.Honda officers r coming on 26 May to Discuss
  1. more than a month ago
  2. New Cars, Reviews
  3. # 6
Admin Accepted Answer
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Update - Honda Dealers also has scrapped off dealer handling charge as checked in latest Price list in New Delhi
  1. more than a month ago
  2. New Cars, Reviews
  3. # 7
Sathish Accepted Answer
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I bought new Honda jazz last week. They charged Rs.12000. As handling charges. Is there any options to fight against this issues. If possible we can save other car buyers in that showroom. Pls let me know ur suggestion.
  1. more than a month ago
  2. New Cars, Reviews
  3. # 8
Admin Accepted Answer
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There is an updated that
> Maruti Suzuki
> Hyundai India

has asked dealerships to scrap in Logistics charges

refer report on :- Handling Charges Scrapped by Maruti, Hyundai

Lets await for other Auto makers to initiate removal of this dubious charge.
Update: Handling charges been scrapped from price list of Mahindra and Tata Motors too
  1. more than a month ago
  2. New Cars, Reviews
  3. # 9
Admin Accepted Answer
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Additional latest info post that Dealer Handling Charges are marked an unauthorized as per Circular report below
https://www.mycarhelpline.com/images/easyblog_images/572/Dealer-Handling-Charge-State-Notification.jpg

https://www.mycarhelpline.com/images/easyblog_images/572/Part2.jpg
  1. more than a month ago
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  3. # 10
dhirenchheda Accepted Answer
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Is this Law same for Maharashtra also,

I want to sue Royalenfield dealer for charging me 4000/- extra fees as dealer handling charges.

Regards,
Dhirne
  1. more than a month ago
  2. New Cars, Reviews
  3. # 11
Admin Accepted Answer
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An update from Kerala - worth to share - where actions are taken against Dealers charging Logistics / Handling Charge
  1. more than a month ago
  2. New Cars, Reviews
  3. # 12
PK Dave Accepted Answer
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Hello,

There is a notification which has come in Times of India Surat - stating that dealers can not charges Handling Charges
Its termed as Illegal charges

Sharing Clipping
As per news 30000 cars are sold in Surat every year - with an estimated Rs 21 crore taken illegally as handling charge
Then - situation is much bigger Pan India - wherein 25 Lakh cars are sold every year - means more than 1500 crore is what charged by dealers as handling charge and is illegal
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  1. more than a month ago
  2. New Cars, Reviews
  3. # 13
Sumit Accepted Answer
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Hope the new Chief Minister of Delhi
whether from Aam Aadmi Party or BJP - take up this route of dubious practice strongly
Every day over 1000 vehicles are sold in Delhi and it implies - 1000* 7000 = 70 Lakh i.e 20 crore i.e 240 crore rupees every year as hard earned money from delhi people is eaten up these dealers.

Let there be a rule which clearly state
> Exfactory
> Exshowroom
> On Road price

If its exshowroom - whats the meaning of dealer handling / logistics charges - car price is available at already stated exshowroom price - let road tax and insurance be the only component which should be paid and no such illegitimate charges be paid

Arent dealers making profit by selling car at exshowroom and procuring car at exfactory price.
Let there be strict law on same !!
  1. more than a month ago
  2. New Cars, Reviews
  3. # 14
Admin Accepted Answer
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@ Sumit

There was a notification from Transport Department - came in long back - 3 yrs +
Attaching same
https://www.mycarhelpline.com/images/easyblog_images/128/b2ap3_thumbnail_Transport-Deptt-Notice.jpg

However - a clause in notification states as - 'Not authorized by Manufacturer'
Dealers have now changed the name of Dubious 'Logistics charges' and termed it as 'fuel expenses, driver and parking expense, & other service related charges" in the Proforma Price List.

Although to what i understand - ideally as there is no value addition to the car - additional charges should not be levied
Like the way the car sold by Manufacturer - is the same car sold, any accessories fitment has separate cost and are paid.

But - If you visit a dealer now - he may claim that the charges constitutes as part of on road cost and welcome buyer to may even speak to manufacturer - as these are one which even a manufacturer will not deny or call it unauthorized !!!

You may check it out with Manufacturer even on it.
  1. more than a month ago
  2. New Cars, Reviews
  3. # 15
Rajkumar Accepted Answer
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Yes.. Every where dealers are asking for this logistics/handling charges.
  1. more than a month ago
  2. New Cars, Reviews
  3. # 16
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