Logistic / Handling Charges By Dealers Are Illegal


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I for one have never paid these handling charges for the cars I have purchased. Same holds true for the all cars we have currently.
Handling/Logistic Charges are money milking things and they add to profits of the dealer. If you ask them, they'll say registration charges, commission etc. All this is absolutely waste of money.
I generally behave in aggressive way when this thing comes, I will ask them to call the agent for whom this money will be credited and suddenly they'll turn numb. Here are 2 steps I do in such case
1. I'll give at max Rs. 250-500 for the temporary registration

2. In case I am paying full amount, I'll minus these extras from on road price or just give sum of Ex Showroom Road Tax Insurance.

If the price list mention as Road Tax Registration Charges, I'll minus the handling charges amount on that one too. Here by doing this I am saving money as well as not paying for unwanted things.

In some cities, like Bangalore where the car is registered before handing over to the owner and post realization of cheque, in such scenario it would be best to use the 2nd option mentioned above.

If you're aggressive in these scenarios the dealer will definitely remove these charges. Because 1 car will make a difference to them in monthly sales target.
 
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Motor dept. raids offices of auto dealers in Kerala
The Motor Vehicles department sleuths have launched a state-wide raid at the offices of auto dealers. The raid titled 'Anti Looting' was conducted following complaints received from customers that the dealers are charging exorbitant amount of money in the name of vehicle registration. Officials have also seized documents from offices proving the fraud.
The preliminary investigation conducted by the transport commissionerate found mass misappropriation. The dealers were cheating customers at a tune of Rs 320 crore every year through improper means. Almost 8 lakh vehicles hit on Kerala roads each year, among this 6 lakh are two-wheelers, taking advantage of the ignorance of the customers, the dealers charged Rs 2000 from each customer in the name of handling charges and many times this went up to 1 lakh on luxury vehicles but in reality the auto manufacturers bear the cost of handling charge. Grievances received from various quarters prompted Tomin Thachankary, transport commissioner to order an investigation.
The trade certificates of auto dealers who were found deceiving customers will be suspended, informed transport commissioner.
[thumbsup]

Source: Asianet News
 
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Re: Logistic / Handling Charges Not to Be Paid in Delhi

After some nitpick, my dealer has agreed to refund the logistics charges. They inform that it's being done especially for me while others who have already booked the car won’t be refunded this amount. Also they offered an option to either take the cash back or compensate in terms of accessories. I’m choosing cash, of course. :smile:

A capture of public notice from TOI:
View attachment 36867

Drive Safe,
350Z
Do you have the original copy of this newspaper mentioning the date of publication as I require it for filing purpose
 
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Handling / Incidental / Other Charges Scam

This is about the Handling/Incidental/Other charges scam which most of the dealers include in invoice even though its illegal by law and many rulings are there against it by consumer courts and Delhi High court. Hope this will make the TAI members aware about this scam and fight against it , like i did and save a few thousand bucks from your invoice while new car purchase. I saved around 10k [:)]

This happened while purchasing my car back in 2015. Still some dealers charge these charges while some don't. But in kerala most dealers irrespective of which manufacturers they represent are charging this.

I was just checking the invoice they gave for me to apply for the loan, and noticed a charge named incidental & document charges. So I called up the SE and asked him about it. He told me it was the handling charge and all manufactures charge it in on road price and nothing abnormal in it. Everyone calls it as they like handling charges,depot charges,incidental charges. Etc. I was like OK let me check the same with my friends working in Hyundai and Maruti, so called them up and they said its collected by them too. I left that matter there. Later on while going through the new happenings in automotive field came across a news where I read that vw is going to increase dealer commission and many other things to boost sales etc. So was curious to know the dealer commission they will be getting ,so googled it and find out the dealer gets it at a price which covers all transport charges including transit insurance and they are charging the taxes and their commission over it to form ex showroom price. So was puzzled about handling charges now. If its not for transport to dealer and handling of that (told by my SE) ,then what they really charging them for? So the search started to find the answer and was shocked to find out its illegal to charge handling charges and they charge it as their extra income for dealership from which they offer the freebies.:mad:

So , I Called up my SE again, asked him again what it is really that you charging me for in the name of handling charges. He was not able to give me a proper reasonable answer. Meanwhile I called my friend who works in Hyundai and asked him about this handling charge. He then asked me what's the matter. So I explained the things I found and told him i need to know what its actually for ,so he said me on a note that don't let this out, that its just a extra profit for the dealership , and its from this some dealers offer the accessories. I was so shocked. He also added that there were incidents one or two customer argued about it and got it waived off. But it was a rare case as most of the customers are not aware. He said you too can get it waived off , but he doesn't have any proofs or anything showing its illegal, so said just to argue and negotiate on it and if they are not willing , threat to walk out of deal saying I am buying from who doesn't charge handling charge. But I am not good at arguing ,so went googling again for proof or some legal documents/judgements about this. Though I made up my mind not to pay a single amount more than the ex showroom and insurance(they got me a insurance for the same quote I got outside) , as I am only getting Temp registration and getting it registered my own. In Kerala most of us do like that. So now need something to prove its illegal. So hunt began !!
 
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Re: Handling/incidental/Other charges SCAM

So after spending a little bit time on google, got the following info.
# Delhi HC had a judgement about this handling charged and made it illegal in April 2012.
#There were many news prints available which shows it is illegal in Delhi as HC made it illegal. Also there were news about this handling charge issues in pune and Banglore where too that was proved illegal and even RTO's stating strict actions such as cancellation of delearship license may done if complaints registered against this.

I was looking for some from Kerala and did find that too , Cochin consumer court verdict against BMW dealer to refund the handling charges+ 10k to the X1 owner. So I got Delhi HC judgement and newsprints for above. Now what? Call SE. As expected same answer . I told him I will talk to higher officials like Manager or AGM/GM regarding this. He told will ask the manager to call me. No calls received. So thought to write a mail to vw . So shot a mail to vw customer care asking why its charged and what's vw India's views on it. Got a call back from vw India in half an hour and asked me the details of dealership and my concern . I explained them its illegal and do vw support this? I was told by customer care executive that will forward the mail to corresponding higher officials for resolution. Got a call from CRM of vw dealership within 15 min and asked me what's my concern as he got a mail from vw. Thats fast i thought, Considering it was 6.30 in evening by then. Told him all info i got till date and its illegal by Delhi HC judgement. He said he didn't know about anysuch things. And said its dealer level charge not manufacturers. I replied I am not getting registration done from them nor my vehicle arrived till date ,so no charges as bribes at reg office nor any handling at yard. For what should i pay the amount then. So here comes. The non-sensible non sense story from VW CRM. According to him , "all vw cars arrive at showrooms with all sensors disabled. Like for abs ,airbag, steering wheel(!!??) . so they enable it in PDI. So the charge is for PDI. " I replied never heard of any such thing. He told can enquire and he is in business for 10-12 years. I said OK. Will enquire for sure. Still if its true by any chance, 10k for enabling sensors through vagcom.!?? And another group dealing with vw in kerala charges 7k. He said price is fixed by Dealership management . Will talk about it with higher officials if you finding it high. I told him it was not the price difference its the handling charge the issue. He said will call you tomorrow.

After the call I enquired about this with my friends from kerala ,they were making fun of this like yes ,its true the sensors won't work,until the ignition is switched on. Then everything gets enabled. I was so mad at that point and felt customer relation manager just made me a fool and I was like how I thought it can happen [frustration]. Thought of shooting another mail to vw regarding this. After sometime got cooled down and thought for a while, if I mail vw again, That idiotic nonsensible CRM will be calling me again to repeat the same story else new one he made up. Why waste time. Play it different. Called my SE and told him I am not a fool and are you trying to play with me. I may not be have the knowledge but can get any info from internet and my friends too working in same industry so i know your games. so ask your sales manager to call me up tomorrow morning , to talk about this, I was thinking of writing to vw again but didn't want to make your dealership in trouble for some idiotic CRM. He said will talk to manager right then and call me back. Called me back in 5 min and told manager will be contacting me in morning. Manager called me in morning and told me CRM didn't know nothing and was taking in a friendly manner. Told him ,let be frank, as you know from all this I know things thats happens at dealerships and the games. So tell me why your dealership charging this. He replied yes,its not pdi,nor any handling ,its as a extra profit to dealership and use this money to cover the expenses of yard and their maintenance and added will talk to management to lower the price as I told a 3k difference with another dealer and as its the price decided by management. He said cant waive it off and everyone charges that. I was cool and calm and told him ,OK I agree with everything. you have expenses , but why should I pay for something I am not supposed to. Its your responsibility to give me the vehicle in showroom condition. Good and clean. That's why I am paying ex showroom. He repeated the same charges and won't be waived can get it lowered. So asked him what if I prove him with proofs, not just any court orders from Delhi HC and even from a Kerala consumer court verdict that its illegal to charge this, do I still need to pay. He didn't spoke for some seconds. He was then going for the same I repeated what if... [glasses]..

He then smiled and told me he knows its illegal but that what every dealer do. I told them that's not I do, paying for things I shouldn't and won't pay a single rupee for your profit as you will be getting it from vw. He said I will try to talk with management. I said am not registering so no bribe at RTO office stuff, nor there isn't any handling And made clear won't be paying anything extra as its illegal. At end he asked me what you getting at? Me: will be paying for ex showroom, insurance and temp.reg. and I have checked temp reg charge at RTO site so don't fool me in that too. Not a single rupee extra as its illegal. He told OK. Cut the call. And same day afternoon called me and told have waived off handling charges ,only actual Temp reg charges,exshowroom and insurance(I already got a quote from outside for insurance and as they matched it i went ahead to buy it from the dealer) to be paid. He also added as mine is a special case he waived it off. He he. Yup. Special may be one who questioned them about this. [;)] so saved ~10k from the robbery they planned and he called me up me in the evening asking me about any more problems in my buying and was friendly. and at the time of hangup asked me to reply to mail from vw stating that my problem is solved and he helped me in that and I am happy to forward with my purchase. He told me they have points for this and they will be losing points if the case not resolved in 48hours. So mailed as he was helpful and frank and didn't try to play games nor make up stories. One call and all sorted. And I haven't forgotten the CRM ,sent one mail to him too. for the Experience and the Help.

So Handling/incidental/Other charges can be waived off as its ILLEGAL. and more people raise their voice against it ,they will be forced to withdraw these charges . If customers are aware of it and question them they do waive it off ,but there is a initial resistance though. Make your point and stand firmly in not paying it as it illegal. Do mail to corresponding manufacturer about it. In my case it made them to admit its dealer level charge and its for covering their expenses.
The one's who reading this don't pay a single rupee as handling charge next time you buy a new vehicle. Hope this would help you guys to save some bucks.
 
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Dealer charging 22000 as handling charges !

Got a quote from Toyota dealer for Innova Crysta 2.4 ZX MT. Thanks to GST the ex-showroom price was reduced by Rs.95000. I was going through the quote and noticed that Road Tax was a little higher. I calculated that 14% of ex-showroom price (Rs.18,99,900) should be Rs.265986. But the SA mentioned it as Rs. 288690. I immediately pulled up the SA and asked about the difference (Rs.22.704). He simply mentioned that it was for handling charges. This is how these dealers are fleecing unsuspecting customers. Non-vigilant customers might pay off thinking that it is the road tax.

I told him that charging handling charges is illegal. He told that I should bargain with the 'Senior Manager' and they would decrease some amount. This is simply ridiculous. The charge itself is illegal and he says I have to bargain to decrease the illegal charge.

I am back home and thinking how to deal with this. We really want to buy Innova Crysta and we dont even have any other dealer nearby.
 
Joined
May 24, 2017
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Meerut
Re: Dealer charging 22000 as handling charges !

Got a quote from Toyota dealer for Innova Crysta 2.4 ZX MT. Thanks to GST the ex-showroom price was reduced by Rs.95000. I was going through the quote and noticed that Road Tax was a little higher. I calculated that 14% of ex-showroom price (Rs.18,99,900) should be Rs.265986. But the SA mentioned it as Rs. 288690. I immediately pulled up the SA and asked about the difference (Rs.22.704). He simply mentioned that it was for handling charges. This is how these dealers are fleecing unsuspecting customers. Non-vigilant customers might pay off thinking that it is the road tax.

I told him that charging handling charges is illegal. He told that I should bargain with the 'Senior Manager' and they would decrease some amount. This is simply ridiculous. The charge itself is illegal and he says I have to bargain to decrease the illegal charge.

I am back home and thinking how to deal with this. We really want to buy Innova Crysta and we dont even have any other dealer nearby.
Same is the case here. The Hyundai Creta price list, I obtained from two dealers, has inflated RTO registration charges. I was under the impression that Creta come under 10% RTO charge, but they have mentioned around Rs.6000 more in the name of RTO charges.

P.S. Does anybody kindly forward me to the website where the latest RTO taxation is listed(for U.P.). I tried searching but couldn;t find any.

Thanks.
 

allhyundaicars

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Not sure what the Rs.4000 parking fees is for. Another way to rip off the customer.

But the dealer here in Guntur, AP is charging Rs.22000 as handling fee !! Ridiculous.
It's a mandatory charge by the government. It's the MCD parking charges.

You can visit the rto and get it regestered yourself or just visit the rto and ask them the amount to be paid.
Else report on twitter.
 
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Is the handling charges are still legal ??
Saw this twitter response from TATA Motors recently where some one asked for "can car makers charge handling charges on car? Tata nexon dealers charging 10k!"

In Reply TATA Motors said " Hello, handling charges are as per price shared by TML & dealers are required to charge it. Please do write back to us in case of any query."

Twitter Link https://twitter.com/TataMotors/status/912981731698978817
 

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Bahrain
My fight for illegal handling charges

First I thank TAI forum and its members for the spot on information that gave me courage.

I booked car around Diwali 2017. Prior to GST hike there were no handling charges but after that concord imposed handling charges for which they have no logical explanation.

After taking delivery I come across some information regarding illegality of the handling charges.

1. http://www.team-bhp.com/forum/attac...na-kerala-too-delhi-transport-dept-notice.pdf

Immediately I wrote a letter to dealer to refund Handling Charges for which they took no action for almost two months.

After that I come across TAI thread
http://www.theautomotiveindia.com/f...ors-nexon-now-launched-rs-5-85-lakhs-146.html

After that I wrote email to customer care.
customercare@tatamotors.com

Immediately I got prompt response and they asked dealer to refund handling charges immediately[clap]

Some more links...
2. SC slams car dealers for illegal charges - Indian Express

3. https://www.cartoq.com/how-a-tata-n...-got-handling-charges-waived-off-you-can-too/
 
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