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Hello I am Hardik here from Pune. I purchased Hyundai i10 and at the time of booking dealer has given me the price list as below: Ex-showroom Pric: Rs. 4,39,523.00 Insurance : Rs. 14,803.00 3rd Year Warranty: Rs. 2,500.00 Essential Accessories: Rs. 1,125.00 RTO Individual: Rs. 35,345.00 Total Cost : Rs. 4,93,296.00 In that dealer has given me Insurance free and also some cash discount so both the parties settled down the deal at 4,75,000 Rs. After that I got the delivery and after few days I got the original Challan. To my suprise, I found that 3 different things 1) The Ex-showroom price got changed and the price on Challan(bill) was Rs. 4,26,136 i.e. about 13,387. 2) The Insurance premium what dealer committed to be free I got the amount included in the challan I received and the amount was Rs. 11,584(on Price list it was 14,803 and also free) 3) The RTO Individual price quoted on price list was Rs. 35,345 where as in Challan I got the figure of Rs. 34,330 (Rs. 29,830.00 RTO Receipt + Rs. 4500 Reg. Charges). As per the above scenario I feel that I was cheated as the Insurance has to be bared by dealer and the figure should not be included in challan. Also dealer can't reduce the Ex-showroom price and RTO as the deal was finalized on the Price list which states different figure. I request all the experts to give me your advice on what exactly is the correct billing process. Am I going anywhere wrong? What could be the next step I can take to get my money back. Need your sincere suggestions and help please.
By Hardik 01 January 2011

Give them a official letter for explaination to the dealer and CC the copy to regional manager if still they dont respond send a notice through lawyer or go to consumer court...

Answer by Arpit 01 January 2011

Don't do any thing. you can not get refund, difference Amount goes into sales person and dealer pocket, very positively they will explain you and you will get satisfied, my dear this is automobile industry, Top to bottom all are lier in showroom.

Forget, you concentrate on your progressive and positive way.

Thanks and regds,


Answer by Santosh 01 January 2011

at the end of the day did you end up paying anything more than what you were asked to? if not then shut the topic and forget it.....if yes then go to the consumer forum.

Answer by Rishikesh 01 January 2011

consmer forum

Answer by Rahul 01 January 2011

Consumer forum.

Answer by Abhishek 01 January 2011

So long as you have not paid more than what has been comitted, this should be perfectly fine. Few points to note:

a) Insurance can never be free. For the second year, they will give you discount on premium - If it is free, on what basis would this be done. When they say free, it means they will take that cost. Next year you would pay.
b) Ex-showroom price also reduced - so what is their for you to complain?
c) RTO charges are generally a % of Ex-showroom price. So if that price has changed, this would change too.

In a nutshell, if you have not spent extra, this seem to be perfectly fine.

Answer by Kannan 01 January 2011

first if u book car in dec end & payment & delivery it in jan then the changes in price are royal but if you did it in same month then u can go to consumer forum and company will liable to pay u

Answer by MAHESH 01 January 2011

Hello All,

Thanks for your response.

The actual issue was not that I have paid anything excess than what commited, but the issue was that I have paid as per the price list figures but now the figures got changed. They first gave me discount of 15,000 Rs and then they reduce the price of each heads by some amount so ultimately they haven't given me any discount any they fooled me.

Answer by Hardik 01 January 2011

Refer to Kannan's answer.

Even though you were told that insurance is free, it does not mean that the dealer has not paid for it. Someone has to pay for it, either you or the dealer. This is just a marketing gimmick. Insurance is a percentage of the ex-showroom price. Similarly RTO is also a percentage of the ex-showroom price.

After your negotiations, eventually you were told that you had to pay Rs. 4,75,000. It was an overall figure given. You never said that Rs. 18, 296 is the discount you wanted on the ex-showroom price.

You have not paid more than the negotiated amount.

The dealer hid the fact that the actual discount that he would have to bear would be only on the ex-showroom price. So, learn your lesson. ALWAYS negotiate for a discount on the ex-show-room price. The insurance and RTO amounts reduce automatically.

Now the dealer will argue that the actual discount was only Rs. 13,387 and accordingly you have been charged the insurance and RTO. No point in taking up the issue with consumer court.

You could say that you have been notionally cheated since you were not given the true picture, but you will not win any case. How the dealer shows the negotiated amount in his records /challan is for accounting purpose. He has divided the overall discount given to you under all the three heads viz, ex-showroom price, insurance and RTO.

Learn your lesson and move on.

Answer by Manish 01 January 2011

WOW. The answer given by Manish has hit the bull's eye. It is a lesson for all potential buyers to get the deal written down in a paper with the signature of the advisor. The 'deal' will have to be written on the letter head of the dealer. If there is any deviation from this you could sue the dealer before the consumer court. Now all that you do is to bring this to the notice of your friends after you have given a letter to the dealer about this cheating.
It is surprising that when we buy a car worth lakhs, there is precious little in writing about the various deals that is struck with the customer. The entire thing is so shady. suzuki should interfere in this and ensure that such corrupt practices are stopped at the earliest.

Bring this to the notice of the Suzuki officials also.

All the best.

Answer by SANJAY 01 January 2011

I think if the Dealer has quoted an ex-showroom price for a particular model then it should remain same. If it is shown less, then then the benefit should go to the buyer and same should be refunded to him. In cases where the company hikes the ex-showroom price,the buyer has to pay more so buy the same model.

Answer by Rajeev 01 January 2011

My friend exshowroom price is what the dealer would quote you....and the one thats mentioned on the invoice is the ex-factory cost. i had similar experience when buying car and i called the head office delhi who told me that the price on invoice or website is exfactory price.thanks

Answer by Chandy 01 January 2011

pl. meet regional manager marketing hundai give a letter as your grievence copy to gm. marketing

Answer by Veloo 01 January 2011

When we buy anything, is it not our duty as a consumer to understand what we are paying for and why? When we are spending lakhs and we have worked for hundreds of hours to earn those lakhs, then is it not our duty to at least spend a few hours understanding what we are buying, and what we are paying for? We have to first educate ourselves as consumers and then the companies and dealers will all fall into place.

Hardik's case is an example from which all car buyers can learn. The dealer was NOT wrong in his dealings. He did not cheat Hardik. It is because Hardik made some assumptions without complete knowledge that he feels cheated today.

Many of us may be persons who do business. If I am a retailer who sells onions, do I not add my own margin to the price that I buy from the wholesaler? That is what the dealer is doing. The ex-factory price is the cost to the manufacturer. The ex-showroom price is the cost to the consumer, after adding dealer margin. So, Invoice from the dealer is never the ex-factory price. It is the ex-showroom price. The dealer has offered you a discount from his own margin.

Does anyone know what is the ex-factory cost of a Hyundai i10? I don't think so. We know only the ex-showroom cost which is same, irrespective of the dealer you buy from. If the company is offering a discount, then that is a discount on the ex-factory cost, which is passed on to the dealer. If the dealer is offering a discount, then that is a discount on the ex-showroom price, which is passed on to the consumer.

The problem is that companies and dealers are not transparent. The company will never share the ex-factory cost (i.e cost to dealer). That will give the customer a fair idea of the dealer margin. I am not aware of what the dealer margins typically are in the automobile industry.

Ideally, the invoice should show the ex-showroom cost i.e cost to the customer, less discount given, and then the taxes such as VAT and octroi in case of Pune.

I think Shiva needs to write a comprehensive article on what the various components of a car price are and the pitfalls that consumers should be aware of. It will be of immense value to all consumers and will clear many misconceptions. I hope you are listening Shiva!

Answer by Manish 01 January 2011

What surprises me that Experts of Car Trade India have reamained evasive till now. Then what is this forum for. Experts , are u listening?

Answer by RAJESH NARULA 01 January 2011
Expert`s comment:

As general rule ex showroom price is put according to the price at the time of taking delivery. Tax and insurance vary according to ex showroom price. Also dealer could have altered the price in their permissible limits to coverup the discount offered.In overall there is nothing to worry as long as you are satisfied with the onroad price.Further clarification you can call up the sales manager of dealer to give correct explanation.

Att mr Manish: We would certainly take your feedback and work on it.
Mr Rajesh : Sorry for bit late reply

Answer by Shiva Shankar 01 January 2011

This is day time robbery and every body has a share in the cake. Would any body- manufacturer, dealer, insurance comanies, Experts etc -be honest / transparent and through some light on the issue.

Answer by A V Patil 01 January 2011


Answer by DR MANISHA MATHUR 01 January 2011

If the ex-shoeroom price is fixed for all Dealers and is the same according to the Model and Variant selected by the buyer, then how is that the actual billing price was so different ?The average consumer is being literally taken for a ride and and there is no accountability in the system.The company should intervene and study the case thoroughly and take remedial action if they want to maintain credibility in the market ....

Answer by Rajeev 01 January 2011

If the ex-shoeroom price is fixed for all Dealers and is the same according to the Model and Variant selected by the buyer, then how is that the actual billing price was so different ?The average consumer is being literally taken for a ride and and there is no accountability in the system.The company should intervene and study the case thoroughly and take remedial action if they want to maintain credibility in the market ....

Answer by Rajeev 01 January 2011

Am glad that we are all discussing this issue and hope the experts will clarify pricing issues. Transparency is what will help maintain trust.

As Rajesh says what is this forum for then? Is it a forum by car manufacturers for car manufacturers and dealers only or is it a forum for all stakeholders - and mainly consumers? Mr. Patil is right when he questions the ethics of the other stakeholders - car manufacturers/ dealers/ insurance companies / and even experts.

But let us be fair and give Car Trade experts a chance to clear the air and educate us on this important issue - that is what will help create an atmosphere of trust.

Thank you Shiva for taking up the suggestion of all forum members. We look forward to hearing from you.

Answer by Manish 01 January 2011
Expert`s comment:

Mr Hardik,

If the current price of the vehicle has not changed (you can verify this from the today's price list), then I don't think the dealer has done anything wrong.

this is in response to your comment:

The actual issue was not that I have paid anything excess than what commited, but the issue was that I have paid as per the price list figures but now the figures got changed.

The dealership has various levers with which he can make a price happen. this is the ex-showroom price, the insurance, the accessories and the RTO fees.

For example, instead of giving a discount, he can also give accessories for the same value.

Finally, only the salesman at the dealership will know the exact mechanics since it all differs per dealership and per individual target. A large dealership may have purchased a lot of accessories at a chepa price and then push those to you at MRP in lieu of a discount.

Also, did you buy the car on finance? the bank gives a pay-out to the dealership. He can discount from this pay-out also....

Last but not least, there is the exchange bonus. By playing with the bonus, he can again repackage your deal.

It all reminds me of the life insurance industry, where there are so many levers, that we customers don't know from where the money is coming and where it is going.

But finally, Sir, you need to be concerned of the total price you have paid and which you agreed to....isn't that what you thought the vehicle is worth to you?

Answer by Akshay 01 January 2011

Thanks all for the advice.

As per many suggested, I went to consumer forum and I am glad to inform all of you that I got justice and I got my extra amount back from the dealer via forum.

So what I learnt from this is everytime company and manufacturer can't take the advantage of the customers who has little or less knowledge about calculations involved in the deal.

No dealer or manufacturer anywhere is giving clear picture about the process and so customer will definately have to pay the price as he was not aware about the process.

In my case, I was having enough proof which gave me justice but many a times we gets cheated and we did not have any proofs also.

Thanks Cartrade for the advice and support.

Answer by Hardik 12 December 2011
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