Dear Mr. Tan
I signed a purchase agreement to buy a used vehicle from a large used car dealer whic his a subsidiary of a large motor distributor.
They were unable to attain a loan approval for the vehicle I have purchased. I wanted to to pay in cash but they refuse to complete the deal. No where in the agreement does it that states that there must be a successful loan for the purchase agreement to be valid. I have also paid a $500 deposit.
As they are so big, they don't even need to be under the CASETRUST-SVTA accreditation. In addition, CASE says that they can mediate and if the dealer does not honour the deal, there is nothing CASE can do about it.
Should a consumer back out from a deal, the dealer would sue the the buyer. However, when the dealer refuses to complete the deal, they get away with it. I have spent much time and effort going through many different cars, it doesn't feel good to be taken advantage of.
This is akin to a new car dealer that sells you a "GUARANTEED COE" new car, and just walks away when COE rises.
The dealer knows that a helpless consumer will not pursue their rights if they are being bullied as it costs too much money and time. They are a big company and have the financial clout and legal personnel to corner the consumer into submission.
Hopefully, you can get highlight this on your website and help prevent other consumers from being cornered and bullied by a large MNC.
JS
There must be certain disadvantages to the dealer when you pay in cash. Of course they are not obliged to disclose this to you.
ReplyDeleteAnd so much so that these outweigh a cash sale.
Otherwise businesswise it does not make sense to reject a cash sale.
There may also be no shortage of buyers whom the dealer think can get their loan approved.
And obviously the dealer knew that you will not go to court but even if you do, you will not win the case.
How about the small claims court?
ReplyDeleteMore than $10k Small Claims No Jurisdiction.
ReplyDeleteDealer get commissions from the loan you take. That's why he refuse to sale in cash.
ReplyDeleteCar dealers have arrangements with the banks to get a commission when you borrow from the banks. That is why your cash deal is rejected. Because they cannot make a commission if you use cash. Macdonalds sell burgers but their business is actually real estate. Courts sell electronics but their business is loans. Car dealers sell cars but their business is......, get the picture yet?
ReplyDeleteNormally the cash price of a car is much lower than that of a car on hire purchase, sometimes by several thousands of dollars. Did u confirm with dealer that the price was to be the same whether thru loan or cash?
ReplyDeleteSteven May 18, 2010 12:14 AM said:
ReplyDeleteNormally the cash price of a car is much lower than that of a car on hire purchase,
That is totally not true! When I bought my car by cash, I had to pay $4k more, simply because salesmen usually get a commission for car loans from the bank.
When I bought my previous car, I had to take a one-year loan minimum, because then it would be cheaper than paying full in cash.
If JS was willing to make up the difference ( pay more ) I'm sure the company would be willing to sell the car to him.
You are quite right, what i actually meant to write was that the cash price is normally higher..
ReplyDeleteMy apologies for any confusion to readers.
Wow!! what an interesting discussion is going on here. Hello everybody i would like to join in this discussion. In my point of view the important thing is the dealer which you have choose should be the right one and gives a good service.
ReplyDelete