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    Thread: Incidental/Service/Transportation/ Charges Levied by Dealers

    1. #1

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      Incidental/Service/Transportation/ Charges Levied by Dealers

      So While i am in the hunt for my next vehicle i have visisted multiple showrooms in Bangalore.
      Gone through a lot of quotations.
      One thing i have found common across in the quotation is this Incidental/Service/Transportation charges.
      There are other names to it as well but above are the ones in fashion these days.

      This amount is generally nominal as compared to the total price of the vehicle.
      My query or argument is that why is it even charged .
      The explanation i got from one of the dealers is that it includes the transportation charged for bringing the vehicle from the factory to showroom or from stockyard to showroom and what not.
      My understanding is that the ex showroom price includes the transportation charges and the only other charges to be levied is the RTO and RC and TCS etc.

      I wanted to know how to avoid it/what argument can we give to get it waived off and more than that is it even Legal/Ethical.
      On one of the ford dealerships i found that they have Not inluded any such charges.Not sure if its company policy or what?

      Please share your thought as to how to get over this if its possible at all in the first place
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      Quote Originally Posted by Dilpreetpuri View Post
      My query or argument is that why is it even charged .
      Earlier it used to be "Handling charges" which was ruled by a Supreme court order, that charging customers in the name of handling charges is illegal and hence the new terminology.

      Related article here

      These charges boil down to the free 5 liter or 10 liter fuel, driving down the vehicle from trucks which carry them from Factory and moving the vehicle to Stock yard, Stock Yard to RTO office, RTO office back to Stock Yard, Stock Yard to Showroom for final delivery, cleaning the vehicle and getting ready for delivery, driver charges, the bribe for RTO agents who the dealership employs, etc and a lot more of charges which the dealership typically encounters and all of them will be finally landing on the customers head.

      Quote Originally Posted by Dilpreetpuri View Post
      My understanding is that the ex showroom price includes the transportation charges and the only other charges to be levied is the RTO and RC and TCS etc.
      No it doesn't. Its just the invoice amount of the vehicles cost.

      Quote Originally Posted by Dilpreetpuri View Post
      I wanted to know how to avoid it/what argument can we give to get it waived off and more than that is it even Legal/Ethical.
      You've every right to ask for the split up and if you feel its not justifiable it should be removed. Be stubborn or bold enough to argue and ask for why they charge that despite the ruling.

      Quote Originally Posted by Dilpreetpuri View Post
      On one of the ford dealerships i found that they have Not included any such charges.Not sure if its company policy or what?
      Do they enforce you to buy mandatory accessories from them ? That's also a way they insist sometimes to make money.

      End of day no body runs a business for charity. They will have to make money by pushing some of these on to customers. Selling Cars by setting up such fancy show rooms, paying the SA salaries, Land rent everything adds up to the cost and they'll look for every avenue to make money. Off late Car selling is not a high money making business anymore. Companies especially in the sub 10L segment do sell with cut throat competition and slim margins. They make more money in Service than in Sales. Day by day Labor is also increasing and they've to keep up to the demands and retain the trained mechanics (again training those mechanics will be a cost that will be borne by the dealers)


      As a customer you've to be vigilant and see what's justifiable and acceptable and what's not and take a call. Its a generic rule which holds good across all car dealers / companies. Some are genuinely good some go nasty and reap as much as they could from the unsuspecting customer.

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    3. #3

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      Quote Originally Posted by Lvramanan View Post
      Earlier it used to be "Handling charges" which was ruled by a Supreme court order, that charging customers in the name of handling charges is illegal and hence the new terminology.

      Related article here

      These charges boil down to the free 5 liter or 10 liter fuel, driving down the vehicle from trucks which carry them from Factory and moving the vehicle to Stock yard, Stock Yard to RTO office, RTO office back to Stock Yard, Stock Yard to Showroom for final delivery, cleaning the vehicle and getting ready for delivery, driver charges, the bribe for RTO agents who the dealership employs, etc and a lot more of charges which the dealership typically encounters and all of them will be finally landing on the customers head.



      No it doesn't. Its just the invoice amount of the vehicles cost.



      You've every right to ask for the split up and if you feel its not justifiable it should be removed. Be stubborn or bold enough to argue and ask for why they charge that despite the ruling.



      Do they enforce you to buy mandatory accessories from them ? That's also a way they insist sometimes to make money.

      End of day no body runs a business for charity. They will have to make money by pushing some of these on to customers. Selling Cars by setting up such fancy show rooms, paying the SA salaries, Land rent everything adds up to the cost and they'll look for every avenue to make money. Off late Car selling is not a high money making business anymore. Companies especially in the sub 10L segment do sell with cut throat competition and slim margins. They make more money in Service than in Sales. Day by day Labor is also increasing and they've to keep up to the demands and retain the trained mechanics (again training those mechanics will be a cost that will be borne by the dealers)


      As a customer you've to be vigilant and see what's justifiable and acceptable and what's not and take a call. Its a generic rule which holds good across all car dealers / companies. Some are genuinely good some go nasty and reap as much as they could from the unsuspecting customer.
      I agreed wth you on those points.
      The crux is to get a detailed breakup and check if you are being cheated or not.
      Moreover if the dealer is not pushing you for accessories and insurance then essentially you are only paying extra for the service charge which is again Ok depending how much is it.
      Another question i have is from where should one buy the extended warrenty ? Dealer or from a authorized company service center? Will there be a difference in the price?
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      Quote Originally Posted by Dilpreetpuri View Post
      Another question i have is from where should one buy the extended warrenty ? Dealer or from a authorized company service center? Will there be a difference in the price?
      From the dealer always while buying the car itself. Be it Extended Warranty or AMC or whatsoever. BTW dealer will be having the authorized service center as well No ? Is that different in your place ? The difference in price will come the more you delay it. Meaning if you buy it when the car is new it will be minimal. The more you delay the more costlier it will become. After a certain point in time they won't be available as well if I'm right. So better to buy it along with the car purchase to avoid any hassles later.

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      In Jun 2018 the extended warranty shield for XUV W10 FWD was costing me 22k plus.....delayed it...and now on 31st March 2019 i bought it for 26+K....earlier the better. Buying early one looses interest...buying late one pays more. But I still feel earlier the better.

    6. #6

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      Quote Originally Posted by vehfreak View Post
      In Jun 2018 the extended warranty shield for XUV W10 FWD was costing me 22k plus.....delayed it...and now on 31st March 2019 i bought it for 26+K....earlier the better. Buying early one looses interest...buying late one pays more. But I still feel earlier the better.
      I agree that earlier the better but my question is that will there be a price difference if you buy it from the delaer and if you buy it from a service center authorised by the manufacturer?
      Also I received a call from Mahindra Dealer's Sales manager and he quoted that the service charges are Authorized by Mahindra which is kindaa odd .
      But i guess you cant fight them if all the dealers are charging it .
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      Quote Originally Posted by Dilpreetpuri View Post
      I agree that earlier the better but my question is that will there be a price difference if you buy it from the delaer and if you buy it from a service center authorised by the manufacturer?
      You still didn't get the point. It will be both the same. Dealer who is selling the car and he's the same entity who will be servicing your car. There should be no difference in price when it comes to the Warranty or AMC costs offered at the same time.

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      Quote Originally Posted by Lvramanan View Post
      Dealer who is selling the car and he's the same entity who will be servicing your car. There should be no difference in price when it comes to the Warranty or AMC costs offered at the same time.
      Actually, that's not quite correct. It should be the same but it's not. The reason is when the dealer/sales rep sells the car with a warranty and AMC he gets a portion of this as commission for up-selling it. He may choose to pass on the commission(a portion of it) as a discount to you for getting your business. But the same package if bought from the service center will have different costs because they will not have control over the price set by the company as the company will not offer any commisions or discounts for providing extended warranty to a car which is going out of warranty period soon. This is all hear say, so i am just pointing out that there is a chance it will be different.

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      I bought the shield on WITHYOUHAMESHA app...and got a discount of INR750/- I never tried asking the dealer, which I thought cannot be cheaper then Mahindra.

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      Quote Originally Posted by vehfreak View Post
      I never tried asking the dealer, which I thought cannot be cheaper then Mahindra
      This you should have tried. Though I am not sure how much would it have helped. I bought my extended warranty along with the car for 21k. I was sure I am keeping this car for long and that extended warranty was no brainer for me.

      Quote Originally Posted by Lvramanan View Post
      No it doesn't. Its just the invoice amount of the vehicles cost.
      If it doesn't include, then why call it "ex-showroom"? They should find a new terminology for it.

      I always felt this "charge" was their convenience fee for getting car registered and delivered to you along with number plate and some customary things. I don't remember paying any such charge for XUV500. And I was not an easy customer for them.

      Take any of the quote from showroom, and email it to CC and have them clarify it. They may call it to be service center dependent thing. If it is the case - it is in your total purview to negotiate and get it waived off.

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