PARALLEL importers might be giving authorised car agents a run for their money, but they are also notching up the bulk of complaints from buyers.
In the first four months of this year, they were the target of 189 complaints -or 82.5 per cent of the total related to car sales - show figures from the Consumers Association of Singapore (Case).That compares with around 141 cases or 68 per cent over the same period in the past two years.
Parallel importers sell cars sourced from overseas dealers. Authorised agents get theirs direct from the manufacturers, which require them to invest in service and after-sales infrastructure.
When car import rules were relaxed in the 1990s, parallel importers started taking root. But it is only in recent years that they have carved a niche for themselves.
Their share of the car market rose from 5.8 per cent in 2005 to 14 per cent last year. In the first four months of this year, it shot up to 20.2 per cent.Case executive director Seah Seng Choon said complaints against parallel importers often pertain to a refusal to return deposits.
"Typically, the vendor assures consumers that they will have no problem obtaining car loans and ask them to pay a deposit for their cars," said Mr Seah.
"But when consumers find out that their loans are not approved, they are unable to get back the deposit."
Other common grouses include delays - sometimes for months - in securing a certificate of entitlement (COE).
Mr Seah said buyers have complained also about poor after-sales service and about getting cars which differ from those specified in the sales contract.
To be fair, there have been complaints against authorised dealers, too. But their numbers are small when compared to the volume of cars they sell.
For instance, six complaints were filed in the first four months of this year against Toyota distributor Borneo Motors, which sold 6,779 cars in the period. Multi-brand Cycle & Carriage, which sold nearly 6,000 cars, got the same number of complaints.
Parallel importers, which number over 200, each seldom sells more than 100 cars a month. Singapore Vehicle Traders Association (SVTA) president Neo Nam Heng said he is working on setting up a CaseTrust programme for importers willing to abide by best-practice standards.
CaseTrust is a stamp of approval which Case accords to trustworthy retailers."SVTA will come up with a set of criteria for entry, as well as a minimum security deposit of $20,000," Mr Neo said, adding that a mediation panel will also be formed. The security deposits will be used to settle dispute cases.
Mr Neo advised consumers "to be realistic and exercise judgment", adding that some offers are just too good to be true.Of late, advertisements put up by some parallel importers promise a 10-year warranty, cash rebates of up to $26,000 and "$1 drive aways". Customers should check the claims because, as Mr Neo said, even authorised agents don't offer a10-year warranty.
Case's Mr Seah said the association often helps settle disputes amicably. But if an errant retailer is uncooperative, it can seek legal recourse.
Car-related complaints have been among the most common grouses "for many years", Case noted.