The chip shortage disrupted timelines in the automobile industry and just as manufacturers worked their way around this, the market bounced back and how. Customers flocked to showrooms and four-wheeler sales have hit record highs as have waiting periods.
In the case of some popular models, waiting periods only keep swelling, as manufacturers simply don’t have the production capacity to meet demand, or in the case of imports, they don’t have allocations to supply.
In such a scenario, getting timely delivery of the model of your choice takes precedence over seeking a discount, and it’s this that dealerships are taking advantage of. The attitude has shifted from ‘customer is king’ to ‘take it or leave it’. This isn’t limited to dealerships of any particular manufacturer, but is common across the board and across the country.
Buyers are quoted with absurd waiting periods, but impatient ones are offered ready stock ‘which another person just happened to cancel’. Of course, the said car comes with an inflated price tag thanks to accessories, paint protection kits, and other add-ons that the said customer had fitted. You can refuse this of course, but another customer will snap it up and it’s back to the line for you.
While this is still somewhat justified, since as a buyer you are getting some tangibles in exchange for the premium and early delivery, there’s now the concept of ‘on’ or an ‘outright premium’ to jump the queue, spreading to showrooms like a plague. Direct selling agents manage to ‘source’ vehicles, with long waiting periods, from multiple dealerships across a particular state, and command a hefty premium over and above the price of the vehicle, which is essentially their sourcing fee. These premiums range from Rs 50,000-80,000 on some budget CNG cars to Rs 1-3 lakh on mid-sizers; and easily crosses north of Rs 10 lakh for some CBUs which cost eight digits. What’s more, it’s all in cahoots with the dealership which will point customers in the direction of these agents.
Dealerships from smaller towns and cities, which get fewer allocations from the manufacturer, are the ones who suffer the most due to direct selling agents, who source cars from larger towns and cities.
So long as customers are willing to trust these agents, and pay the extra sum there’s little that can be done, and besides while it may be extortion, there’s a monetary benefit to be had. With solid demand and rising input costs, manufacturers rapidly raise prices so paying a premium to jump the queue also means you’re protected from the hike that you would have to cough up as prices are applicable at the time of delivery.
Would you pay a premium and get early delivery, or would you discourage this practice and wait for the model of choice?
Also See:
Opinion: Why Gen Z is shying away from buying cars
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via Auto Wheels 24