Buying a new car is often an emotional milestone. It represents progress, comfort, and achievement. Unfortunately, this emotional excitement is also what makes many buyers vulnerable to manipulation, misinformation, and unethical practices by dealerships. While most car dealers operate fairly, there are recurring grey-area practices and outright scams that every buyer must be aware of before signing the cheque.
This article aims to create consumer awareness by
highlighting the most common problems faced during new car purchases and how
buyers can protect themselves.
1. Inflated On-Road Prices and Hidden Charges
One of the most common issues faced by car buyers is the
lack of transparency in pricing.
Dealerships often quote an “on-road price” that includes:
- Handling
charges
- Logistics
fees
- Stockyard
charges
- Mandatory
accessories
Many of these charges are illegal or optional, yet
they are presented as compulsory. Buyers, eager to complete the purchase, often
accept them without question.
What buyers should do:
- Ask
for a detailed price breakup in writing
- Cross-check
ex-showroom prices on the manufacturer’s official website
- Know
that “handling charges” are not legally mandatory
2. Insurance Manipulation
Dealers frequently insist that buyers take insurance through
them, often at a significantly higher premium than market rates. They may use
fear tactics, such as delayed delivery or warranty issues, to discourage
external insurance.
In reality, buyers have the legal right to choose their
own insurance provider.
What buyers should do:
- Compare
insurance quotes online before visiting the showroom
- Clearly
state your intention to buy insurance independently
- Remember:
warranty and delivery cannot legally be denied for this reason
3. Accessories Forced on the Buyer
Car accessories are one of the biggest profit centers for
dealerships. Items like floor mats, seat covers, mud flaps, underbody coating,
and paint protection are often bundled and presented as mandatory.
Many buyers are unaware that:
- Most
accessories are optional
- The
same items are available outside at far lower prices
What buyers should do:
- Ask
which accessories are truly mandatory (very few are)
- Decline
bundled packages if not needed
- Purchase
accessories independently after delivery if required
4. Old or Test-Drive Vehicles Sold as New
In some cases, customers receive cars that:
- Were
manufactured several months earlier
- Were
used for test drives
- Have
been registered temporarily or moved across the stockyards
While this does not happen frequently, it is one of the most
serious violations when it does.
What buyers should do:
- Check
the VIN (Vehicle Identification Number) to confirm the manufacturing
date
- Inspect
the car thoroughly before registration
- Ensure
odometer readings are minimal at delivery
5. Loan and Finance Commission Tricks
Dealers often push specific banks or finance companies, not
because they offer the best rates, but because they provide higher commissions
to the dealership.
This can result in:
- Higher
interest rates
- Unfavourable
loan terms
- Unnecessary
add-ons like loan insurance
What buyers should do:
- Compare
loan offers from multiple banks independently
- Negotiate
interest rates directly with lenders
- Read
loan agreements carefully before signing
6. Delayed Delivery and False Promises
Verbal assurances regarding delivery dates, discounts, or
features are often made during booking but conveniently forgotten later.
Since most of these promises are not documented,
buyers struggle to hold dealers accountable.
What buyers should do:
- Get
all commitments in writing (email or booking form)
- Avoid
relying solely on verbal assurances
- Pay
minimal booking amounts until clarity is achieved
7. Emotional Pressure and Urgency Tactics
Sales executives are trained to create urgency:
- “Only
one car left.”
- “Price
will increase next week.”
- “Offer
valid only today.”
These tactics push buyers into rushed decisions, reducing
their ability to negotiate or verify information.
What buyers should do:
- Take
time to think—cars are high-value purchases
- Never
rush due to artificial deadlines
- Be
prepared to walk away
The Bigger Picture: Why Awareness Matters
The car-buying process in India still heavily favours
dealerships in terms of information and control. Most issues arise not because
buyers are careless, but because information asymmetry exists.
An informed buyer:
- Asks
better questions
- Negotiates
confidently
- Avoids
unnecessary expenses
- Encourages
ethical business practices
When consumers become aware, the system slowly corrects
itself.
Conclusion
Buying a new car should be a joyful experience—not one
filled with regret and confusion. While dealerships play an important role in
the automobile ecosystem, buyers must take responsibility for being
informed, alert, and assertive.
Awareness is not about mistrust—it is about balance.
