Buy Car Must Take Loans/Buy Insurance Same Place???

[Vulcann]

From ST Forum:

 

http://www.straitstimes.com/STForum/Story/...ory_694341.html

 

Anti-competitive

 

'Almost all car dealers insist buyers take up motor loans and insurance from companies they have tied up with.'

 

MR LEONG SZE HIAN: 'I bought a new car recently and was told by the manufacturer's sole agent that I must take up its motor insurance policy with an insurance company. This was despite the fact that I could get a cheaper net motor insurance premium and a lower claims excess from another insurance company. This is clearly anti-competitive behaviour, which I understand is prevalent in the motor industry here. Thus, is it any wonder that motor insurance premiums have been going up in recent years, when consumers are forced to take up more expensive policies with less benefits in the event of a claim? My understanding is that almost all car dealers insist buyers take up motor loans and insurance from companies they have tied up with. What this means is that even if the buyer can obtain a car loan with better terms, he cannot do so.'

[SimonTan]

The buyer forgot that the new car price has discounted already.

 

I thought most jap car price list clearly has the column stating the additional discount given if buy in-house ins n loan?

 

Just like COE packaged...if you bid Coe yourself....then have to pay higher price for the basic car itself!

 

This man simply wants to get the best of both world!!

Cheap skate!

 

[Satria_neo]

Yes, for my case the sales person said I have to buy insurance from them. Its not a big issue for me since its just 1yr from them then I can go back to my usual insurance person.

 

Also, I have been on AXA all the time so I just specify that I want AXA.

 

Regarding loan, I let them handle it for me instead for ease of mind. This is because its easier for them to get a loan for me from the bank compared to me getting it myself.

 

Also, if they are unable to get a loan for me, then they have to refund me my deposit (I ensure its written down in black and white).

 

If I am getting loan myself and I failed to get any, they do not have to refund me anything. Thats something I do not want to happen.

[Acieed]

I thought it's optional ? If you buy from AD, you will be entitled to special discount price. If not, you will buy at retail price. You always have the option to buy at retail price, and then get your own loan ? No ? Usually, it's worse of a deal because the interest rates are identical. And if you buy in cash, the retail price is also slightly higher.

 

 

 

 

 

[Dldm]

wat to do? the AD n PI oso need to earn $$ for living from bank loans, insurance other than the markup profit of the car price.

[Throttle2]

once again, it's better to buy from direct owner especially when paying full cash.

[SimonTan]

Paying full cash?

You different social class. Respect!

 

[Satria_neo]

once again, it's better to buy from direct owner especially when paying full cash.

 

It may or may not be better.

 

Cause it entirely depends on the condition of the vehicle.

[Beachboy7718]

The buyer forgot that the new car price has discounted already.

 

I thought most jap car price list clearly has the column stating the additional discount given if buy in-house ins n loan?

 

Just like COE packaged...if you bid Coe yourself....then have to pay higher price for the basic car itself!

 

This man simply wants to get the best of both world!!

Cheap skate!

 

You are obsolutely right. There is nothing to complain when there is such clause above for new car with promotional package discount or even ask for more free gasgest/accessories for your new car. How much can you save from insurance afterall just few hundred the most or not even hundred. But 2nd year, it is your choice to choose any insurance. Maybe he is new car buyer. Wanna save more, make sure your NCD is 50% + 5% bonus ...

[Throttle2]

It may or may not be better.

 

Cause it entirely depends on the condition of the vehicle.

 

 

All else equals, it is better.

 

My personal experience.

 

Plus the paperwork is so simple.

Buy insurance via website

transfer ownership within 5mins at LTA.

 

Whhooohoo

 

 

 

 

 

[Satria_neo]

All else equals, it is better.

 

My personal experience.

 

Plus the paperwork is so simple.

Buy insurance via website

transfer ownership within 5mins at LTA.

 

Whhooohoo

 

If everything is equal, yes, I agreed that getting from owner is better.

 

Doing transfer at LTA is indeed very simple. Just feel up the form, pay the transfer fee and its down. Only troublesome part is both seller and buyer have to go LTA together so got to arrange. Unless seller trust you with his/her IC.

 

 

[Beng2]

Mr Leong SZ bought a new car, not resale. When I bought my car from the AD, I chose their in-house insurance because of the rebate (usually $1000 - $1500). I believe Mr Leong is right because the ADs are essentially "forcing" people to get their insurance from them because not many car buyers are able to source for alternative insurance coverage for premium $1000-$1500 less that what is quoted by the AD. It makes no sense to source for a policy $500 cheaper than what is quoted by the SE when you have to forgo the "rebate" of $1000-$1500.

[Johnparker]

well in my case i have taken loan by selecting loan company from www.yellowpages.com.sg/category/Loans/4294923180

 

The advice has helped me to pay back loan smoothly

[Loveisallaround]

It's the same for 2nd hand dealers, they insist for you to use their insurance brokers, they earn a cut off them, or they may be affiliated, I don't think it's a must, but as long as they find me a good quote I think it's okay.

[Shihui82]

now car COE so expensive!