May 26, 2006
Buyer beware
A weekly look at what to watch out for in the world of consumers. Figures, case study and tips come from the Consumers Association of Singapore (Case).
The world of cars
116 No. of cases filed (January to December 2005)
Top complaints
1. Misrepresentation
2. Failure to honour contract
A consumer signed a sales agreement with a car dealer to purchase a new car, and put down a deposit of $2,000. In the terms and conditions, it was stated that the deposit would be refunded if the hire-purchase loan was not approved.
The loan was eventually not approved but the company refused to refund the $2,000. The consumer approached Case to request the company to honour the terms of the agreement.
Case wrote in on behalf of the consumer and highlighted that the terms in the agreement clearly allowed the consumer to get a refund of the deposit paid if the hire-purchase loan was not approved.
The company agreed to refund the deposit.
1. Know the procedures and policies involved in a car purchase. First, a certificate of entitlement (COE) has to be obtained; next a hire-purchase loan has to be obtained.
The Land Transport Authority (LTA) website (www.onemotoring .com.sg) provides information on procedures and policies - for example, how to bid for a COE.
2. Put verbal agreements in writing. As it is not easy to enforce verbal agreements, it is prudent to put it in writing - for example, free leather seats, delivery within one month, and so on - including refund arrangements if it is not mentioned in the contract.
3. Read the sales agreement. The Motor Traders Association (www.mta.org.sg/guide.htm) provides a checklist. For example, are the first year's road tax and insurance included in the price? How many free-service checks are included?
4. Do your sums before you sign. The LTA website mentioned above also provides a detailed breakdown of car costs, which enables consumers to calculate the profit mark-up of car dealers.
5. Do not sign blank forms. Signing of blank forms is akin to signing a blank cheque and it could result in fraudulent entries without you knowing it.
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