Beware! Unethical Practices By Various Dealerships Across India

Thread Starter #31
Feb 28, 2012
The whole problem happens because in India we don't have consumer protection laws that is the reason we are taken for a ride .
imagine how many people who dont have technical knowledge or don't have access to reputated forum like TAI were there are some knowledgeable guys who help are been looted and cheated every day . It is high time that some strict laws are implemented in the interest of the consumer.
Sep 15, 2009
The whole problem happens because in India we don't have consumer protection laws that is the reason we are taken for a ride .
imagine how many people who dont have technical knowledge or don't have access to reputated forum like TAI were there are some knowledgeable guys who help are been looted and cheated every day . It is high time that some strict laws are implemented in the interest of the consumer.
We do have a great set of Consumer Protection Laws and there are Consumer Disputes Redressal Forums spread out across the length and breadth of the nation as well. The Forums are also pro consumer in nature.

The problem lies in the fact that the awards made through orders and judgements are not that great when compared with many other nations like for instance the U.S. But then again, The penalties imposed here are also meagre when put into comparison.

Another issue is that the time that is taken to reach a verdict is pretty long, But still it is far better than other Courts and I do see a lot of auto manufacturers and dealerships getting sued through Consumer Disputes Redressal Forums here in Kerala. Almost 90% of the time the verdict will be in favour of the consumer.

I think people need to be made more aware about consumer protection laws and then only will the unfair practices come to an end.
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Honoured Member
Sep 7, 2014
Delhi-NCR/ Mumbai
Ambiguous Practices by Indian Car Dealers


Buying a new car is a dream for every individual and a moment of sheer happiness for the entire family. With our hard earned money, we go to available brand's showroom to book the dream car.

Over there we always come across their "ambiguous" policies. I recently faced this so would like to share and know your views over the same.

I am looking for a D-Segment premium sedan with a budget of 15 Lacs. Hence, Foremost I approached Toyota Dealers here in Noida apart from others like Honda et al.

Me and my dad went to check the 2014 Corolla Altis and there the ordeal began. The unjustified policies of the dealers here that I could not digest were:

1) INR 51000/- as the booking amount. They were not ready to accept anything less than this as their "system" won't generate an order number.

2) INR 1500/- for temporary registration in Noida itself since they did not have the car in stock and would arrange from their Delhi outlet. For their lack of stocking why are the customers made to pay the extra charges. The SA did not have any reply for this.

3) They are providing a bill for logistic charges but not ready to give an itemized statement for this. As it is this is illegal for dealers to charge the logistic charges. They are not ready to cancel those charges.

4) The car is delivered and billed to customer as per the price on delivery day which is ok. But Toyota dealer here in Noida did not give us even slightest of the info about the forthcoming price rise. They did not even tell that prices might increase during booking.

5) Yesterday after test drive of Corolla, the SA informed that it is costly now by INR 20,000 (G Variant). I spoke to higher management of the dealership and they said we did not inform our sales team since we were not aware of the amount of price rise. Can't the Sales team simply inform that prices might rise soon too? I made the booking on 1st and on 4th I am told the price is increased, they said the decision of price rise was done on 01st October 2014. I did not understand the logic of this. Even after lot of efforts of coming to a mutual agreement the deal did not go through as they were adamant for INR 51,000/- My dad assured them of paying it by 10th of this month since banks shall open on 7th and 2 days it will take for financing yet they did not agree. We were even ready to take delivery of the car on 12th October i.e Sunday as we don't buy new stuff on a Saturday.

6) Once the DD for the car is made as per invoice by authorized dealer then if on delivery the price changes, who is going to pay for the DD Cancellation and new DD charges? Again the customer is going to be penalized.

7) Went to Honda Dealership, I asked the SA where is it written that Honda has told you to charge a booking amount of INR 51000/= ? He could not reply to it and showed me his dealership booking slip of 51000 which they charged. It is not a policy of the OEM rather it is a fancy idea of the dealership only. The SA said "Humari agency mei 51000/- se booking hogi" (In our dealership the booking is from 51,000 only).

8) By paying 51,000 are they trying to establish the authenticity of the customer? What is the guaranty that the person who is paying 51,000 is genuine and the person paying 10,000 is fake? I bought my earlier cars with a booking amount of INR 10,000.

9) The Toyota dealer was not keen on taking booking amount and simply said we will generate your order. I found this fishy since no where the dealers are so kind to book a car without any advance. Later, I came to know there is one Pearl White Corolla in the Delhi showroom that is left. So they were trying to get rid of it. Though my choice was never the White color but due to waiting period I agreed. However, after knowing this hidden story I simply refused to deal with them.

10) I booked an Ertiga ZXi in June 2014, paid INR 5000 as booking amount but the ASC were reluctant in giving VIN which we eventually tried to get. AS my uncle is there in with ASC so after refusal of VIN by showroom I cancelled the booking of Ertiga recently for Corolla since my parents did not agree for it and I wanted a car on Diwali.

I finally have postponed my purchase from Noida and would be buying the car from Delhi.

What are your views on the above points? Please share your experiences and views.


May 23, 2014
Hi, great share ,
First of all no dealer must charge for transportation if charged we can file a case .
Booking amounts vary by company and model but not dealer, its the company fixes the booking amount, to know booking amount check manufacturer website under book a car link,
You can also feel free to post a complaint about dealer to company directly in their website then they will face severe consequences,

You had chosen a good car (ertiga ) my personal altime favorite
I have TD many cars since 3 years even premium cars ,
But driving feel and comfort of premium cars and practicality was great in ertiga , also space and driving dynamics .
You are good to go ,watch for diwali offers
Happy diwali ahead !


Since we are in a process of buying a car we went to couple of dealerships for a test drive with my family .
First stop was at tata they had a test drive vehicle for aria so we took the test drive that was nice same with the grande too but when it came to safari the SA said he will arrange tommorow .
The next day he called me I went to the showroom which is like 5 min away from home and I was shocked to see a brand new ex model safari with plastics on the seats and it had a temp reg board the odometer was disconnected so I sensed something wrong I asked is this a test vehicle the SA said yes of course I told him let me talk to your manager suddenly he said it is actually of a customer and the delivery is tommorow so since you wanted a test drive I thought I can arrange it infact the manager told him to do so . I was shocked I gave him a good lecture and refused to take the test drive and I left ......
Awesome! Bro , these dealerships must be treated like this, make a complaint in company
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Apr 7, 2014
Same incidents happend when we booked our Dzire ,we were charged certain logistic and handling charges, but i was firm on the point that the Ex-showroom price consists of all the cost up to the showroom and any cost further like registration and insurance are chargeable. And at last the amount was 'adjusted' not levied. [anger][gun][frustration]
May 13, 2015
Chennai / Coimbatore
6 Months ago here in Chennai I went one of the Ford showroom for all new fiesta test drive, however they don’t have Fiesta at present so SA asked me to try ecosport even they don’t have diesel TD but petrol TD car was available. I test drove it few kilo metres and somehow ecosport petrol model I am not satisfied then again back to showroom. SA asked , sir how was test drive ? when will you book sir?. I told actually I just came for Fiesta test drive but unfortunately you don’t have right now so I am planning to leaving & call me once TD vehicle ready. Meanwhile SA asked to another SA like is there any all new fiesta came for service? For giving to me to test drive.[frustration]

I strictly told to SA I don’t want to customer vehicle for TD and warned don’t do such a things. I just wonder how dare they are ready give customer vehicle for TD, what happen if owner found this and incase of any accident what they will say to customer.

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