Renault dealers overcharging for the Kwid

Renault dealerships across the country are overcharging the customers for the Kwid. The customers are being asked to shell out an excess in the range of Rs 15,000 to Rs 30,000 over what should be the ideal on-road price, under the pretext of delivery charges, compulsory accessories or some other heads.

The most common pretext used by dealerships for charging extra money is the delivery charges – these are not official, but imposed by the dealerships, probably as an additional source of income. These, in case of the Kwid, are in the range of Rs 5,000 to Rs 10,000 depending upon the location.

The dealerships are also making the customers buy compulsory accessories for the Kwid. Accessories are supposed to be optional, but in case of the Kwid, the showrooms want customers to spend a minimum of Rs 4,000. A couple of dealerships also told us that opting for the extended warranty worth Rs 4,670 and zero depreciation insurance worth at least Rs 1,800 was a must for booking the car.

For a car that is worth around Rs 4 lakh on road, additional charges add almost 5 per cent to the overall cost. Headers like the essential accessories and logistical charges are completely unfair and amount to almost Rs 15,000. Additionally, the extended warranty and zero depreciation insurance should be optional, not something that should be forced on the customer, like most dealers are doing at the moment.

While there is no justification for overcharging the customers, the plausible reason is the fact that the profit margins for the dealers on the small cars are very low. And since the car is in demand, this is the easiest way to maximise the profits.