Loot in Guise of "Cancellation Charges" By Apex Honda in Mumbai

[Megha Gupta]

This is wrt my intended purchase & subsequent cancellation of a "Honda Accord" with Apex Honda which is an authorised dealer of Honda in Mumbai. I gave them a token amount of Rs. 1,11,000/- on 29th March. However, the contract form had not been signed. Based on the pricing offered, I decided a day later to cancel the process with Apex Honda and asked for a refund. The next day the company representative brought a contract letter along with him and got it signed by me saying that they need the sign before processing my request for cancellation and refund. On 6th April 2011, the refund cheque of only Rs. 68240/- (versus the Rs. 1,11000 /- paid) was made in my name by the company and they claimed 2% of ex-showroom price as cancellation charges. This cancellation charge was not mentioned to me earlier - most importantly, it is not a part of the order form they got my sign on or the receipt acknowledging the rs. 110000 payment from my side. This is sheer loot - also, the contract letter (order form) had not been signed at the time of receipt of the cheque!!! Another large authorised dealer charged only Rs. 2500/- against the Rs. 5 lakh booking amount paid to him as cancellation charges just a week earlier. This loot (Rs. 42000/-) by an "authorised" Honda dealer is unprecedented and shocking! I would like to drag the company into consumer court to make good the balance payment immediately and the dealer be taken to task for unfair looting practice and harassment to customer.

 

[HoLySaTaN]

Re: Looting in the guise of "cancellation charges" by Honda Dealer - Apex Honda in Mu

Hi Gupta,

Welcome to TAI!

A very unfortunate incident is what you have mentioned! If you are pretty sure that, the showroom had not mentioned you about the cancellation charges, I guess you have every right to sue them. Do take this issue forward and teach the showroom fellas a lesson that they deserve!

 

[Akash]

Re: Looting in the guise of "cancellation charges" by Honda Dealer - Apex Honda in Mu

Hi Megha,

Welcome to The Automotive India. Sad to know about the incident.

You should first contact the Honda India customer desk and tell them about this incident. Also i would like to know whether you have any receipt of the 1.1lacs you paid to the dealer. If yes, then getting a complete refund wont be a big issue. Contact the Honda guys, hopefully they will resolve the issue very soon. The dealerships often try such tricks of making money when booking is cancelled. And any day, 42k as cancellation charges is simply disgusting and doesnt look like a genuine act.

 

[Mr.Boss]

Re: Looting in the guise of "cancellation charges" by Honda Dealer - Apex Honda in Mu

Hi Megha, Welcome to TAI.
42k cancellation charge? This smells fishy.
Take up this with Honda Customer care.

BTW Maruti is far better that they never charged me anything for 2 of my booking cancellation.

 

[mastersquall]

Re: Looting in the guise of "cancellation charges" by Honda Dealer - Apex Honda in Mu

unless someone book personally customize car . NO company can charge for cancellation . This is definitely fishy here

 

[350Z]

Re: Looting in the guise of "cancellation charges" by Honda Dealer - Apex Honda in Mu

This is wrt my intended purchase & subsequent cancellation of a "Honda Accord" with Apex Honda which is an authorised dealer of Honda in Mumbai. I gave them a token amount of Rs. 1,11,000/- on 29th March. However, the contract form had not been signed. Based on the pricing offered, I decided a day later to cancel the process with Apex Honda and asked for a refund. The next day the company representative brought a contract letter along with him and got it signed by me saying that they need the sign before processing my request for cancellation and refund. On 6th April 2011, the refund cheque of only Rs. 68240/- (versus the Rs. 1,11000 /- paid) was made in my name by the company and they claimed 2% of ex-showroom price as cancellation charges. This cancellation charge was not mentioned to me earlier - most importantly, it is not a part of the order form they got my sign on or the receipt acknowledging the rs. 110000 payment from my side. This is sheer loot - also, the contract letter (order form) had not been signed at the time of receipt of the cheque!!! Another large authorised dealer charged only Rs. 2500/- against the Rs. 5 lakh booking amount paid to him as cancellation charges just a week earlier. This loot (Rs. 42000/-) by an "authorised" Honda dealer is unprecedented and shocking! I would like to drag the company into consumer court to make good the balance payment immediately and the dealer be taken to task for unfair looting practice and harassment to customer.

Hello Megha, Welcome to The Automotive India. Are you sure that you read their complete Terms and Conditions before booking the car and paying that amount? Because there is no rule as such for cancellation charges, and it more or less depends upon company and dealer. If they have mentioned about the 2% deduction on Ex.Showroom price as cancellation charges then I doubt if we can do much, but if not, then the ball is in your court.

Another large authorised dealer charged only Rs. 2500/- against the Rs. 5 lakh booking amount paid to him as cancellation charges just a week earlier.

This case also in context to Honda Accord?

Drive Safe,
350Z

 

[mukeshus]

There is no where they can deduct a single penny.

Even i had paid 50,000 as booking amount for my car.
After they failed to deliver the car on mentioned time, they were giving excuses to refund the amount.
Then i spoke to the owner of showroom.
Who gave a cheque of the full amount.

So these Sales advisor's do such tricks and try to sell you car.
So better drop a mail to the highest authority of Honda .
And sure you will get a response.
And do mail to CCM of Apex Honda, as well as regional CCM.

 

[ilango[speed thirst]]

man! 42k for cancelling the booking !

Must kill them then and there. did you write to Honda?

 

[350Z]

There is no where they can deduct a single penny.

Even i had paid 50,000 as booking amount for my car.
After they failed to deliver the car on mentioned time, they were giving excuses to refund the amount.
Then i spoke to the owner of showroom.
Who gave a cheque of the full amount.

So these Sales advisor's do such tricks and try to sell you car.
So better drop a mail to the highest authority of Honda .
And sure you will get a response.
And do mail to CCM of Apex Honda, as well as regional CCM.

I think we discussed on this elsewhere too. Your issue was different because dealer could not deliver the car on specified time (So they were to be blamed from all side). Though here OP is asking for the cancellation and if Honda Dealership has placed a factory order for Accord, they might charge the cost of uncertain cancellation. But now the question brings up to how much they should charge, because deducting such a huge sum is not fair enough, unless it is already stated in their policies, which must be read before placing an order.

Drive Safe,
350Z

 

[mastersquall]

@350Z but they didn't told him and also it wasn't mentioned anywhere that they will charge him.

 

[AMG]

I feel the cancellation amount is normal.

After all, all that they have deducted is 2.5% of the price of the car.

 

[ilango[speed thirst]]

I feel the cancellation amount is normal.

After all, all that they have deducted is 2.5% of the price of the car.

isn't it a loot. some how they are going to sell the car.
so simply throwing a 40+k is huge

 

[AMG]

I feel the cancellation charge should be relative.

So deducting 42K as cancellation charge on Nano is not justified, but 42 K on Accord seems to be justified to me, atleast.

The dealer ordered the car, took pains, did follow-up with the customer, and doesnt the poor guy deserve anything?

 

[cooldhaya]

Cancellation charges is anyday a loot! Be it 2k or 40k! The dealer is anyways going to sell the car to another customer then why the cancellation charges , these dealers make good money by doing such gimmicks!

 

[AMG]

@ cool and everyone else

Please keep in mind the dealer also