He changes mind about buying car when he fails to get 100% bank loan, but is told:

[Billcoke]

source: http://newpaper.asia1.com.sg/news/story/0,...,143089,00.html?

[RadX]

http://newpaper.asia1.com.sg/news/story/0,...,143089,00.html

[Route88]

Hyperlink la

 

http://newpaper.asia1.com.sg/news/story/0,4136,143089,00.html? ://http://newpaper.asia1.com.sg/news/s...43089,00.html? ://http://newpaper.asia1.com.sg/news/s...43089,00.html? ://http://newpaper.asia1.com.sg/news/s...43089,00.html? ://http://newpaper.asia1.com.sg/news/s...43089,00.html? ://http://newpaper.asia1.com.sg/news/s...43089,00.html?

 

WHEN dealing with some parallel car importers, read the sales contract carefully before signing.

Click to see larger image

Mr Chen registered his complaint against the parallel car importer with the Consumers Association of Singapore). -- Picture: KUA CHEE SIONG

 

Otherwise you might be saddled with a loan you don't want.

 

If you refuse the loan and decide not to purchase the car, you might end up with a demand for a hefty penalty.

 

And it is all legal.

 

One buyer, who wanted to be known only as Mr Chen, is facing a possible lawsuit after a loan failed to work out as he had expected.

 

He signed a contract to buy a new car from a parallel importer earlier this year.

 

Said Mr Chen, who is in his 40s: 'I told the salesman that I needed a 100 per cent loan. He told me not to worry about the loan applications and to go ahead and sign the sales contract as he was confident the loan would be approved by a bank.'

 

But a few days later, the salesman called to tell him that he had managed to get only 70 per cent of the loan from a bank.

 

The remaining 30 per cent would come from the company's in-house financing, he added.

 

The interest rate was the same for both. But, while the bank loan was for 10 years, the in-house loan had to be repaid in two years.

 

Said Mr Chen, a manager: 'I told him I was not keen on the arrangement. After all, I had to pay instalments of more than $700 to the bank each month and over $400 to the company. Why would I agree to pay so much?'

 

Mr Chen said that from his previous experiences with the other dealers, he assumed that was the end of the matter.

 

SHOCKED

 

But two months later, he was shocked to receive a lawyer's letter asking him to pay for the car and legal costs.

 

He declined to reveal further details.

 

He said he went to meet the owner of the company and offered to buy the car on the spot to settle the matter.

 

But the owner told him to write to the management, which would then decide whether to sell him the car or to proceed with legal action.

 

After writing in, Mr Chen received a call from the company telling him that he would have to pay a few thousand dollars to cancel the agreement and he would still have to buy the car under a new contract.

 

Mr Chen refused and sought help from the Consumers Association of Singapore (Case), which has received seven complaints against the company this year.

 

'I felt they were really twisting my arm since they had not even bid for the COE or registered the car,' he said.

 

Case wrote to the company to allow him to continue with the sales contract but it replied that it would continue with the lawsuit.

 

Mr Chen has not heard from the company for a month.

 

He felt buyers may not be aware of what they are getting into when they sign the sales contract.

 

'I would warn others not to sign the form even though the salesmen assure them that they won't have to go through with the purchase,' he said.

 

BE ON GUARD

 

Case executive director Seah Seng Choon said that when a consumer signs a sales agreement form to facilitate applying for a loan from a bank, it is legally binding. He advises consumers to be on their guard before committing to any agreement.

 

Mr Seah explained: 'Companies can use these agreements against the consumers in the event of a dispute stating that consumers have already stated in black and white that they had agreed to the terms of the agreement. Such scenarios would put consumers at a disadvantage.'

 

The owner of a parallel import company at Turf City told The New Paper that banks require the agreement forms to facilitate loan applications, but the companies can use the forms to 'tie down' the customers.

 

The dealer, who declined to be named, said: 'There are dealers who force their customers to take the car once the loan is approved, and I think they have the legal right to, once the forms are signed.'

 

He said he chooses not to do so.

 

Said the dealer, who has been in business for 20 years, said: 'We accept it if buyers give a good reason why they want to cancel the agreement. We even refund their deposits.

 

'Who knows, they might return to us one day or refer us to their friends.

 

'There is no point in upsetting the customers. So far, we have no complaints against us.'

[Mzrmazda3]

Buy new car, buy until kena law suit

Edited September 27, 2007 by Mzrmazda3

[Guest Julio369]

sometimes these contract's T&C so DEEEEEEP, need a lawyer to understand... we average joe sure die lah.

[Penthousepauper]

I sympathised for the buyer. Maybe, he shouldn't be commiting on a new car, if his finances are tight.

[Crius]

yeah but part of the problem is salesmen that are either tell you the wrong thing, or conveniently forget to tell you alot of things..

[Sniperben]

the risk of being a walk-in customer is that you never know if that company got sure weird policy or not. so, the best is to buy from SE that got good record, so that they will not eat your deposit.

[Hoppie24]

heh ben,

 

Guess this company is one of the blacksheep in your industry. Hope it's not from your company. Guess this will lower the number of people going for PI cars. This kind of bxxxxxd company should close shop. Curse them whole company go bankrupt.

[Nolink]

Won't close shop because so many innocent buyers may commit to the deal without knowing, best option is to reveal these blacksheeps' company names and hope the public would avoid them.

 

I really can't understand how they can sleep at nite.

[Sniperben]

 

surely not my company. actually SE can influence the decision to refund or not. it is also up to individual SE to fight for their client rights.

[Prodigysaint]

this is mainly PI problem lah... those AD where got like that..

 

that's why dun buy from SMALL PIs..

[Paul78]

How come these bad company never named by CASE or whoever? In that case, they can continue to do this kind of things ma????

[Comfy]

have u heard of "not guilty until proven" ?

[Ultramega]

i think that is because these bad companies are doing things which are leagally right (but ethically wrong) so CASE has no case against them.

[Turbonetics]

maybe the SE will earn from part of the deposit.

that's why they don't want to help.

that is very unethical.

Edited September 27, 2007 by Turbonetics

[Acemundo]

funny how all the accusations seemed to be pointed at the PI. even if they are unethical or unprofessional enough to promise him 100% loan, this guy has only to blame himself on

 

1) Gullible enough to believe the 100% loan possible representation made by the PI. He is borrowing the money from the bank not from the PI

2) Did not have a contingency plan to service the installment in case 100% loan assumption fails

3) Rejected the in house financing due to high overall installment quantum. That means he probably overstretched himself to get a new car or an expensive car

4) At his age, didn't even know roughly how banks assess creditworthiness or saddle himself with too many other loans and still hope the banks to extend out the olive branch to him? he should know his own income and gearing better than the PI agent

 

oral misrepresentation is so common in this commercial world. even SE of reputed AD, property agents also has misrepresented at one time or other. it is always better to depend on ourselves than on the words of the CSO (with vested interest) serving us.

Edited September 27, 2007 by Acemundo

[Sniperben]

i won't deny what you just said.