Logistic / Handling Charges By Dealers Are Illegal

[NH08]

In today's Times of India, there is a public notice from Transport Department which says that many dealers in Delhi are levying additional charges such as logistic/handling charges from customers. It has warned that any excess amount charged from customer, which is not authorised by manufacturer, would be in violation of various rules of government and action would be taken against them like withdrawal of trade certificates, cancellation of self registration powers and/or imposing of penalty.

The Department has advised all buyers not to pay any such charges in the name of logistics/handling/misc. charges.

Source: ToI, Delhi edition, page 15

 

[350Z]

Re: Logistic/handling charges not to be paid in Delhi

Excellent news. Since day one I was quite suspicious about the unnecessary charges that dealers normally include in the on-road price. I cleared up about separate break up of each additional amount before booking already. Just informed my sales person about this, let’s see how they react now.

Drive Safe,
350Z

 

[Umang]

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

this great news buddy! thanks for sharing but why its for delhi only. dont dealers in other cities charge it?

 

[NH08]

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

I can understand if Dealers are still doing this but they have the audacity to publish the details of these charges openly on their website?? Just came across this-

carnama

What Transport Dept. is doing?

 

[350Z]

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.

A capture of public notice from TOI:


Drive Safe,
350Z

 

[NH08]

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

That is good you were refunded these charges. While some are taking in the name of 'handling charges' and 'incidental charges', one Hyundai dealer is taking this as 'Stockyard/driver/fuel charges'.

http://www.samarahyundai.com/pdf/prices.pdf

What is this driver charge? New innovation in looting the customer?

 

[350Z]

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

My amount was recently refunded. Did anyone else insist their dealer for same? Buyers do need to act fast to prevent this daylight robbery from happening.

Drive Safe,
350Z

 

[basis]

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

This is a great news. Buy why only for Delhi? Not for other cities? Pl. confirm about Bangalore. Here all car dealers charginf such extra. How should I say NO; and if paid hw to get the full money back?

 

[Umang]

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

i agree with basis but maybe only delhi govt issued notice..people from other city also have right to ask for refund!

 

[cooldhaya]

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

I also want to know why only for Delhi and not other cities? Is there any specific reason?


@ 350Z That's great that your dealer refunded the amount in cash.

 

[NH08]

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

This is a great news. Buy why only for Delhi? Not for other cities?

i agree with basis but maybe only delhi govt issued notice..people from other city also have right to ask for refund!

I also want to know why only for Delhi and not other cities? Is there any specific reason?

This has been issued for Delhi as there was a public interest litigation (PIL) filed in the Delhi High Court against levy of these additional illegal charges. Court asked senior officials from Transport Department to appear before it and I think the pressure from the court forced the department to do something.

 

[NH08]

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

This is a great news. Buy why only for Delhi? Not for other cities? Pl. confirm about Bangalore. Here all car dealers charginf such extra. How should I say NO; and if paid hw to get the full money back?

i agree with basis but maybe only delhi govt issued notice..people from other city also have right to ask for refund!

Update

A court in Delhi has instructed for registration of FIR against MD, Volkswagen, dealer of the company and Transport Department official relating to payment of these charges.

carnama: Criminal case against MD, Volkswagen and others

Complainant has said that levy of these charges is in violation of -
1. Motor Vehicle Act and
2. Specific notification from Transport Department, Delhi

See if there are such notifications in other states also. I am not sure how MD, Volkswagen is coming into the picture.

 

[freakdude]

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

when does this come into effect? Can we ask for refund if we have purchased our car say 6 months back??

freakdude.

 

[NH08]

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

I think it should be so. Considering that in the case mentioned above, the car was purchased in March last year, I think you can ask for refund of these charges. If some illegal charges have been taken from you, these are required to be refunded. If you have receipts for these charges, I think it is quite enough to pressurise the dealer. You can also write to the officials of the concerned car company.

 

[350Z]

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

when does this come into effect? Can we ask for refund if we have purchased our car say 6 months back??

freakdude.

There’s no specific deadline. It is illegal since beginning. I think it would be difficult to ask for refund after considerable time gap. It's better that some owners should unite who bought the car from a dealership and insist for total refund, otherwise choose the legal method. How much amount did they take by the way?

Drive Safe,
350Z