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Dealers overcharge for the Renault Kwid

Dealers overcharge for the Renault Kwid
Ninad Mirajgaonkar Ninad Mirajgaonkar Wednesday 30 March 2016, 18:03 PM

The Renault Kwid on-road prices are much higher than ideal, as the dealers are overcharging under various grounds. The customers end up paying Rs 15,000 to Rs 30,000 more than what should be the correct price for the Kwid, with the additional cost for the delivery and essential accessories.

The profit margin on the small cars is very less and the dealers seem to be working to ways to capitalise on the demand. Most dealers are charging in the range of Rs 5,000 to Rs 10,000 as logistics or delivery charges and another Rs 5,000 for essential accessories. Neither of these are justifiable reasons for charging customers – the logistics charges are from the dealer’s end and have nothing to do with the official cost of the car. Even in case of accessories, these have to be presented as option with customers having the right to decide whether or not to pay for them. However, in many cases, the dealerships are not willing to accept the bookings without the commitment of buying these accessories.

We also found out that the zero depreciation insurance and the extended warranty are made part of the on-road price, without the customers having the choice of opting out. All these put together add up to 5 per cent or even more of the overall cost.

 

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