Waiting on cars a marketing stunt?

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Friends as you all know I was hunting for a new Swift Vdi and in the process I contacted almost all the dealers of maruti.

The surprising part is that when I asked for Ready deliver most sales person immediately refused and said not possible. However advised that I place a booking with them so they could allot me a vehicle in case of any cancellations.

I refused to do any booking and advised them to check the stock and let me know once they had a ready delivery due to cancellation or any other reason. If available I shall make immediately book for sure.

Now the surprising part of the story.



I think this is a good way by which dealers pass on the booking to the agents who sell it at a premium in the market, apart from this it also creates a +ve impact in customers mind as they think the vehicle is really good as its having soo many bookings.

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@kushal, there are multiple factors that makes up for the waiting period of a car.

First obviously is the demand for the product, then the production capacity to handle it then other factors creep in.

To me it is difficult to say whether the waiting period for a car is genuine or inflated. As for Swift case, MS have themselves acknowledged that waiting period is high (specially for diesel).

Yes, dealers do tend to offer vehicles with cancelled booking to people who are ready to take them at full down payment (no Bank loans). They tend to do this to reduce their own cost incurred in stocking of the vehicle in case not delivered.

sachins2012-02-09 09:08:48

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This is a big racket going on in our market.  Most of the Dealers do have a  sort of credit period for paying the money to the Manufacturer.  It is the norm in any trade which usually is about a month or two.  In some cases, it even exceeds 6 months (like the case of ACs and Refrigerators...).  So, the Dealers usually try to `book' such `expected to be in great demand' cars, without paying anything to the Manufacturer.  Manufacturer is happy because he can plan the production.  Dealer is happy because he can always `cream off' some extra money from those who can not wait (specially true, if it is a gift for wife or son or for a business deal etc.,).  Without spending a single paisa, these Dealers do such deals so that they can get some easy cash.  The customers are also happy becuase they can get a car of their choice only if it is a success in the market.  Most of the Dealers do not wish to cancel the booked orders.  So, why block the funds and wait for months together.  Pay a little extra (if it is absolutely unavoidable) only if you like the car and willing to pay total cash down.   

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This is interesting topic. But let me tell you, this case is not just with MS, it is with all other brands as well. Even Ford Figo TDCI Lxi is having a waiting period of 45 to 60 days and other variants 30 days when I last checked out the car in Nov 2011 at Harpreet Ford Sector 34 Gurgaon branch.

So I think this is all a marketing stunt.

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I felt the same when a well known friend of my dad went to buy the Swift Dzire(old), that too petrol. Even I feel that this is a scam.

On searching different dealers, I could infer that, not all dealers do this. Yes! waiting period is there and waiting period is not only because of slow production but also stocks of a dealer.

Previously most dealers had a large stock, but the problem of selling target numbers failed with many. So stocks/inventory each one is allowed to hold has been reduced.

It is only recent that demand for cars have increased, and it has exceeded production capacity. For MSIL it has been too much, also big for other manufacturers.

Nowadays, a calculated inventory is maintained near factories, and cars are sent only on request from dealers. So the minimum delay is there. This is actually a loss reduction process. Also a process to ensure maximum sales via authorized shops.

But some dealers estimate a bigger sales volume than they actually do. After the minimum sales target is achieved, the rest goes at a premium.

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