[Awareness] Car Dealers loopholes?

[7hm]

I'm also looking for advice here now, in particular about in-house financing. Is there usually a con to this or does it just purely depend on the terms e.g. interest rate?

[Azhiwen]

Hello everyone,

 

Have not buy any car for 9 years already. Nowadays, the down payment for new car is around 40%-50% of car price. So the amount is actually quite big. Can anyone advise when and how do we paid up the down payment?

 

I remember it used to be on car collection date and I paid for it with a bank issued CO. So is it the same now?

 

Hi bro,

 

Yes, for me, its pay up prior to registration of the car. Remainder of the downpayment by CO or cheque.

[tyco_kia]

I'm also looking for advice here now, in particular about in-house financing. Is there usually a con to this or does it just purely depend on the terms e.g. interest rate?

 

If i'm not wrong, in-house financing is just meant for SE to earn commission easier I guess?

[Coltplussport]

 

Hi bro,

 

Yes, for me, its pay up prior to registration of the car. Remainder of the downpayment by CO or cheque.

Thanks for replying, but cheque takes time to clear, so we issue cheque on collection day or a few days before for the cheque to clear?

[Azhiwen]

Thanks for replying, but cheque takes time to clear, so we issue cheque on collection day or a few days before for the cheque to clear?

 

For me, the SE told me to bring down either CO or cheque, meaning to say, they will collect both at the same time. Perhaps for cheque, they will wait for it to clear before going ahead with registration.

 

Again, it was payment before registration and not car collection day. So if cheque bounced, I guess they won't go ahead with the registration.

Edited May 10, 2015 by Azhiwen

[terencesg]

I just want share in this post my experience with PI : my first and I'm not sure that I will do it again.

I booked a car with a PI. The sales person was very friendly and reassuring.

This PI offered one of the seemingly best deal in the market for the car I wanted.

- Best price.

- Guaranteed COE / delivery.

When I decided to go ahead, he highlighted that I needed to take a mandatory loan (a condition of the promotion price). I thought that was reasonable. I went ahead to book placing the standard $2K deposit.

I left and when I reviewed the agreement, I found that there was no COE rebate - something that was stated in the agreement but left blank. The salesperson also did not highlight this.

I called to query and was told that the promotion price did not come with a COE rebate. I was concerned as I believe the rebate gives a protection against a freak COE result. The salesperson was helpful in providing a COE rebate option (for an additional $2K) with rebate at $57K (typical market rebate appears to be $60k - $65k). But I was given a Hobson's choice : basically 2 not so great options.

If I didn't go ahead, I would lose the deposit. If I stay with original package, I risk a COE freak result without a rebate protection or pay extra $2k to get a rebate that was below the market.

With these gaps coming up, I decided just to check the market interest rate for car loans. The bank that had this promotion said that the rate was indeed as stated by the salesperson but the benefit was that the buyer would get $1K off the car purchase price. I presume that was the package that the PI had offered. I found out also that there were other car loan offers in the market that was about 0.4% - 0.8% better. At 0.4% for a 5-yr $60K loan, it would be at worst neutral (but you get to decide if you want a loan, etc).

Overall, it did not seem so bad but I decided to drop the deal. And of course, the PI told me that I would lose the $2k deposit (even though I highlighted that the terms were not favourable and not clearly highlighted up front. There is I think no such thing as a cooling off period for car purchase in Singapore (like 7 biz days) so I have to likely absorb this loss.

There seems to be a high level of uncertainty dealing with PIs. The reasons that I decided to drop include primarily the peace of mind that you should get when buying a high value item like a car. I do not want to have to worry at every stage eg next stage would be COE bidding, then delivery and the 3 year warranty period. What would come up during these stages with a PI?

 

Maybe I'll still buy from a PI but my advice to everyone is to take your time and work through EVERY detail. If there is such thing as an experienced buyer whom you know, bring him along. The more ngiow one the better cos for such deals, my $2k lesson tells me that you will need it.

[Blacksnow]

Anyone knows of any in-house financing where you can loan up to 80% of car price and yet interest rate is similar to bank.

 

I know you cant have a cake and eat it...but in case there really is such a deal

[BobbyTan_74287]

Hello everyone,

 

Have not buy any car for 9 years already. Nowadays, the down payment for new car is around 40%-50% of car price. So the amount is actually quite big. Can anyone advise when and how do we paid up the down payment?

 

I remember it used to be on car collection date and I paid for it with a bank issued CO. So is it the same now?

I bought from AD. First I pay a booking deposit of S$10k for AD to bid the COE. After secured COE, I issued the balanced downpayment (40% less $10k) using my own cheque to the SE. Then on the same day the cheque cleared, AD registered the car. Later I waited for another 6 days (including Saturday and Sunday) to collect the car.

If no personal cheque can buy Cashier Order from the bank. As CO is a guaranteed payment, the AD will register the car when receive the CO.

[Mockngbrd]

Anyone knows of any in-house financing where you can loan up to 80% of car price and yet interest rate is similar to bank.

 

I know you cant have a cake and eat it...but in case there really is such a deal

 

no . .

[BobbyTan_74287]

I like to ask a question mainly on the variations of guaranteed COE bids.

i have just come across one with guaranteed bids but NO rebate. I have seen many with 1 bid, rebate at $60K, 4 bids, rebate at $65K etc.

This one with no rebate is the one that I need to understand. is it a common practice?

When it is stated guaranteed bids w/o top-ups with a time line like delivery by say July, is this normal rather than within a certain number of bids?

With so many variations, car buyers can be caught. Shouldn't there be more stringent guidelines for this agreement so that dealers cannot play with the ambiguity of the terms?

I would propose that there must be a mandatory rebate pegged at a minimum % of the current COE eg at 65% if current COE so if the current COE is at $100k, the COE rebate level must be set at least $65K or higher.

 

What should one do if a deal is signed with no rebate. Guaranteed bids. Expected delivery Jul / Aug. I think other than to wait for the delivery, there is no other option? Comments of advice ?

I do not think guaranteed bid but NO rebate is a common practice. Normally car dealer work out the car price by adding the COE component. So COE rebate is a discount to us car buyer if the COE falls below the rebate level.

Guaranteed bid means 100% sure secured the COE. So whether 1, 2, 4 or 6 bids is not important as long as we get the car. Delivery by July maybe they need to wait for the stock to come in. COE rebate always is $12k to $18k lower then the actual COE AD will bid so that AD will not risk giving discount to the car buyer. This also gives a impression that AD is subsidising the COE which in fact not 100% true. Maybe only in the event if COE really go sky high. However we always look at the car price and how attractive before we sign the deal and compare the price with other car dealer. The only option is either buy from other dealer or buy other car.

[Damienic]

Anyone knows of any in-house financing where you can loan up to 80% of car price and yet interest rate is similar to bank.

 

I know you cant have a cake and eat it...but in case there really is such a deal

No such deal. Can get loan of 80% but interest rate is much higher at 3.68% (it might have gone further up by now)

[terencesg]

I do not think guaranteed bid but NO rebate is a common practice. Normally car dealer work out the car price by adding the COE component. So COE rebate is a discount to us car buyer if the COE falls below the rebate level.

Guaranteed bid means 100% sure secured the COE. So whether 1, 2, 4 or 6 bids is not important as long as we get the car. Delivery by July maybe they need to wait for the stock to come in. COE rebate always is $12k to $18k lower then the actual COE AD will bid so that AD will not risk giving discount to the car buyer. This also gives a impression that AD is subsidising the COE which in fact not 100% true. Maybe only in the event if COE really go sky high. However we always look at the car price and how attractive before we sign the deal and compare the price with other car dealer. The only option is either buy from other dealer or buy other car.

I think so too that such deals are not common and dealers use it to catch buyers who are unaware or until it's too late.

As I mentioned in my other post, I've decided not to buy at all (likely risk losing the deposit) as I do not believe in doing business with the dealer when it had started all wrong. Buying would just give them more profit thru their unethical practice. Others should just be aware - check the rebate which I didn't as I took it as the standard 60K. Be aware even if the dealer is premium dealer etc cos I think most if not all dealers will hustle when they can for every advantage to make an extra buck.

[Pinobii]

Hi, hope u will get the deposit back, maybe try CASE?

[terencesg]

Hi, hope u will get the deposit back, maybe try CASE?

Thanks. Will see if CASE will help and also, what is interesting is in the fine print, there's a clause that buyer agrees not to approach small claims !! Is this even legally enforceable? Just noted this.

One more alert for buyer : pl read the real fine print because while they say it's standard, it is NOT. No fair seller will disallow you to approach small claims unless they already intend to do something the could be ruled against them. OMG !!

[BobbyTan_74287]

Thanks. Will see if CASE will help and also, what is interesting is in the fine print, there's a clause that buyer agrees not to approach small claims !! Is this even legally enforceable? Just noted this.

One more alert for buyer : pl read the real fine print because while they say it's standard, it is NOT. No fair seller will disallow you to approach small claims unless they already intend to do something the could be ruled against them. OMG !!

A clause that stated "that buyer agrees not to approach small claims" is not valid and I am sure the small claim will still accept if the buyer is right.

[Pinobii]

Thanks. Will see if CASE will help and also, what is interesting is in the fine print, there's a clause that buyer agrees not to approach small claims !! Is this even legally enforceable? Just noted this.

One more alert for buyer : pl read the real fine print because while they say it's standard, it is NOT. No fair seller will disallow you to approach small claims unless they already intend to do something the could be ruled against them. OMG !!

This doesn't sounds proper for sure, try to your best get the deposit back, all the best!

[Eveei]

Need Urgent advise.

 

I have paid about 15k to PI out of full downpayment of 30k, 2 weeks ago before 9 Nov COE bidding. End Oct signed agreement, guarantee COE by 30 Nov. PI very confident can deliver by mid-nov, but since 9 nov, give excuses boss not around and can deliver only on 24 Nov. I believe there was no COE for me, so delay me, just my personal guess.

 

21 Nov, today, they confirm to me that I can collect my car on 24 nov 3pm but I have to make remaining 15k payment by 23 nov 2pm at their premise, at the same time can VIEW MY CAR.

 

So, I believe 23 nov they bid COE, 24 nov only can register in my name. I also don't have cheque book and can only buy cashiers' order (CO), but CO can't post-date.

 

1. Should I pay them the remaining CO on 23 nov?

2. What if they give excuses again and I don't get my car on 24 nov 3pm?

3. Technically, if they bank in the CO by 23 nov, it would have been clear into their bank account by 24nov 2pm. So, I also don't have anything to hold them if they don't deliver as promised. Any advise?

4. Is it normal to pay up full downpayment before they register the car in my name, 1 day before I can collect my car?

 

With recent case of PI run road, really get very worried, even though this company don't have bad review.

 

 

 

 

[Wt_know]

you already paid $15k which is more than $10k deposit to bid coe

with $15k already collected and still not able to show you your coe ... means they have done nothing yet

if they have no cashflow and need another $15k from you ... sounds sibei serious

they might need the "extra" $15k to order from another PI? just saying

buy from PI cant sleep cant eat and cant shit ... sibei stressful

Edited November 21, 2016 by Wt_know