BUYING a car but don't know where to buy it? By as early as Jan 1, you can look for showrooms with a stamp of approval from the Consumers Association of Singapore (Case).

The Singapore Vehicle Traders Association (SVTA), made up largely of parallel importers and used-car dealers, is drawing up a consumer protection programme with Case.

It is the first such programme for the motor industry, and a timely one.

Motor-related complaints rank high among grouses received by Case, with those against parallel importers making up the bulk.

Case executive director Seah Seng Choon said the move will help to establish "a white list of motor traders who are committed to fair trade".

"The objective is to get motor traders who agree to put in place acceptable standards of practice to pre-empt disputes with consumers," he added. "It is a move in the right direction."

SVTA secretary Raymond Tang, who first proposed the idea two years ago, said the move will "separate the black sheep from the rest who have good practices".

He said it will help consumers to choose wisely.

The Case-SVTA plan calls for a third-party panel to help settle disputes. It is to be made up of representatives from financial institutions, insurers and retired members of the judiciary, among others. The Land Transport Authority (LTA) has also been approached to be an independent adviser.

Traders joining the programme will need to pay a $50,000 bond, to be used to settle disputes that may arise. The amount must be topped up if it is used.

There are also plans to draw up a universal sales contract "which will be fair to both buyer and seller".

Another common consumer grouse which will be tackled is unrefunded deposits. Many car dealers do not return deposits if the sale does not go through.

Though it is not clear yet how the scheme will deal with the issue, Mr Tang said the reasons why a sale is not completed will be examined.

"Is it because the buyer simply changed his mind, or he cannot get a loan? And if he couldn't get the loan, was it because he did not declare full information about this financial status?

"Both sides are also looking at how to tackle other practices, such as setting up $2 companies as fronts, false advertising and collection of an 'administrative fee' for each sale.

Not all the 200 or so parallel importers will want or be able to join the Case-SVTA programme.

"We will accept only companies which have been in business for more than a year," said Mr Tang. "If not, they must have a paid-up capital of at least $1 million."

Mr Neo Nam Heng, chairman of Cheng Yong Credit Enterprises, one of the oldest parallel importers here, welcomed the plan.

"Let's be honest, this trade does not have a good name," he said candidly. "It's time to change that."

What do consumers think?

Accountant Patrick Chia, 60, who bought a parallel-import Honda Accord last year, felt the plan should address another point, that importers be required to have proper workshops, well-stocked with spare parts and manned by qualified mechanics.

"Otherwise, it's no use," he said.

"I was at this so-called workshop for eight hours recently, and they couldn't even fix the alignment of my car wheels," he lamented.