Dealer Decreased Ex.showroom Price Instead of Giving Promised Discounts


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Hi
Kindly advise me regarding this as I have to do some thing asap

I bought a new etios liva this month and took delivery today. He offered me a discount of 25000 on insurance premium and 5000 as corporate discount. But after reaching home I realised that he applied the discount 30000 on ex showroom price; ie from 6.58k to 6.28k
So the road tax will be less and the IDV is also less. So he managed to save more in terms of premium and road tax (8% of 30000) He can claim the 30000 discount from toyota too. Now I wanted to know, can I do any thing here. Vehicle price is determined by whom, the company or the dealer. Is it a crime as per oue law (to pay less tax)
 
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Re: Dealer decreased ex-showroom price instead of giving promised discounts

ex-show room prices are determined by company.The true dealer cost is decidedly less than the ex-show room price. It's the way of dealers paying lesser taxes by reducing the ex-show room price.

the right way to provide the discount is ex-show room price+insurance+registration and tax- discounts.

the rto will consider the orginal ex-show room price of 6.58 and you will pay the life time tax for 6.58k. Are you sure that you have paid the life time tax for 6.28k or 6.58k?
 
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This is a very classic issue. And there are two schools of thought on the same.

1. Discount is applied on Ex-showroom price (as in above case). This reduces road tax (as it is calculated as % of ex showroom). Consider this - if road tax more than 5.0 lacs is 14% and if your discounted ex -showroom is 4.XX lacs you save a lot. On the flip side the IDV is less (but that should be ok as you are anyway paying less for the car)

2. Discount is given on the road price i.e - ex-show room price+insurance+registration and tax- discounts.
Though you get the discounts you could have saved more in terms of taxes and insurance.

Cheers,
Anshuman
 
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They have promised to to give 25000 discount on insurance premium and not on the exshowroom price. Here the idv is 6.28l only. will that affect me in the future if any claims are made.


Can I do anything here. Can I demand a new insurance policy.
And is it a crime . Can I complaint to the rto/irda or any other authorities.
 
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This is a very classic issue. And there are two schools of thought on the same.

1. Discount is applied on Ex-showroom price (as in above case). This reduces road tax (as it is calculated as % of ex showroom). Consider this - if road tax more than 5.0 lacs is 14% and if your discounted ex -showroom is 4.XX lacs you save a lot. On the flip side the IDV is less (but that should be ok as you are anyway paying less for the car)

2. Discount is given on the road price i.e - ex-show room price+insurance+registration and tax- discounts.
Though you get the discounts you could have saved more in terms of taxes and insurance.

Cheers,
Anshuman

1. They have clearly mentioned in the proforma invoice that exsr price is 658000. Road tax is 8% of that.
Insurance premium is 24400
Now the new exsr price is 628000. Road tax amount is shown as the same. They didn't give me the tax paid receipt, saying that they will deliver it within 2 days. So it is likely that they wanted to pocket that 2400Rs from road tax

The new IDV is 628000 and the new premium increases by 200 :eek:
 
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if you would have go the discount on the road price, you would have been benifited. instead the discount is made on the ex-show room price and the still the customer pays the tax for 6.58.

my advice is not to take the matter forward or for legals actions. just enjoy your new car.
 
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Ok. If I am not pointing it out, can the authorities blame me for not paying the exact amt of roadtax (like income tax) isnt it my duty to pay the tax
 
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Ok. If I am not pointing it out, can the authorities blame me for not paying the exact amt of roadtax (like income tax) isnt it my duty to pay the tax
You can hold the dealer responsible for that as he is the entity who registered the car on your behalf.

Do not worry too much on this and enjoy your car.

Where are the pics ?
 

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