[From next month, accredited dealers will sport this decal, which signals that they provide better service.]

By Christopher Tan

SEVERAL car parallel importers have moved to clean up the image of the industry, which is known for its high number of customer complaints.

Thirty-nine dealers have received accreditation under a CaseTrust scheme for motor trading firms, and from next month, will begin sporting decals which signal that they provide better service.

The dealers form just over 5 per cent of the 600 or so motor traders - including used-car dealers and authorised agents - here, but more are expected to join in the coming months.

They were among 66 parallel importers that applied to join the scheme, created by the Consumers Association of Singapore (Case) and the Singapore Vehicle Traders Association.

When contacted, firms that did not apply for accreditation either said they planned to do so, or refused to comment.

Those that secured the CaseTrust decal were required to prove, among other things, that they are in good financial health and have transparent and fair buyer's agreements in place. They also had to furnish an insurance bond of $50,000, which would help to settle any customer disputes that might arise.

Case said the aim of the scheme was not to settle disputes, but to prevent them from flaring up in the first place.

Said the consumer watchdog's president, Mr Yeo Guat Kwang: "There's no point setting up a mechanism for fire- fighting. You should prevent fires from starting in the first place. That is the spirit of CaseTrust."

If disputes arise, however, there is a mechanism in place for mediation. It takes the form of Case's Motor Industries Dispute Resolution Centre, whose governors include impartial parties such as Hong Kah GRC MP Ang Mong Seng and former magistrate Dennis Lim. CaseTrust motor firms will be bound by the centre's decisions. But consumers - who have to pay $30 to file a complaint - can pursue further legal action if they wish, said Mr Yeo.

In recent years, complaints against the motor trading industry have numbered between 1,500 and 1,700 annually. This is second only to the 2,100 to 2,700 grouses filed annually against time-share schemes.

Parallel importers and used-car dealers account for most of the complaints. Mr Raymond Tang, managing director of used car trader Yong Lee Seng, one of the first CaseTrust dealers, said he had been pushing for such a scheme since 2005, because he believes in raising the service standard of the trade.

Motorists contacted were generally positive. Mr Jeremy Chan, 33, said the scheme was "helpful", but described the $50,000 bond as "a small measure of security". Said the IT professional: "A car costs as much. And what if the company closes down?" Another motorist, 53-year-old regional manager Steven Teo, said the CaseTrust scheme will -definitely lead to a higher level of acceptance" among car buyers for parallel importers.

Case's Mr Yeo called on buyers to pitch in and ensure the success of the scheme by voting with their wallets.

"If consumers don't support this initiative, then eventually they won't be able to create a fairer trading environment," he said.

He added that the scheme will not lead to higher car prices, as there is "not much additional cost" involved.

When approached, big parallel importers that were not among the 39 accredited gave mixed responses. Ms Valerie Tan, managing director of Pinnacle Motors, said her company would apply, and was "in the midst of preparing documentation".

Mr Chua Thiam Chok, a director at used-car dealer Hin Lung Credit, did not wish to comment. Meanwhile, The Straits Times understands that Case is targeting the spa industry - another complaint-riddled trade - for the CaseTrust scheme.

christan@sph.com.sg

What buyers can expect

VAGUE and one-sided purchase agreements have been the bane of those who buy cars from parallel importers.

A favourite ruse of some dealers is forfeiting deposits when buyers fail to secure car loans. Other shady practices include delaying vehicle deliveries and persuading buyers to "top up" what they have paid because of rising certificate of entitlement rates.

CaseTrust accredited dealers, however, will offer "clear, fair and transparent" contracts, which will specify several things, including: New cars will be delivered within 90 days. A used vehicle will be delivered within 30 days. If cars are not delivered within those specified times, the buyer will be compensated. The terms of compensation are spelt out clearly.

The company will sell what it advertises.

It will set aside a sufficient stock of gifts and promotional items promised, and will offer compensation if such items run out.

Complaints will be resolved within seven days.

Deposits must be refunded if buyers fail to secure a loan. However, a dealer can apply an administrative charge of up to $500 - the exact charge is made clear to the buyer at the point of sale.

The seller must ensure the quality of vehicles sold.

The new Motor Industries Dispute Resolution Centre will hear cases pertaining to CaseTrust companies. Consumers pay a $30 fee to file a formal complaint.

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