HOW TO BE A SMART PARALLEL IMPORT CAR BUYER
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Parallel importers purchase car directly from exporters in Japan and then re-sells it at their own price, which are unlike authorised dealer gain rights to sell directly to the consumers on behalf of the manufacturer. The latter usually have more overhead costs, which results in higher purchase costs of the car.
As we all know, buying from a parallel importer is indeed cheaper than purchasing cars from an authorised dealership. However, there is a rising number of people that were scammed from these parallel importers and lost over thousands of dollars. So how can we be a smarter PI car buyer and not fall into these traps?
Research on the company
There are many parallel importers out there, some are legitimate while some could be not legitimate and unreliable. Hence, it is important to check on the company before heading down to seal the deal. Look through the company’s background, their track records and reviews given by others. Usually, the reviews would provide you with a good overview of the company – is it good and credible or is it dishonest and dodgy? To aid in your research, you can check out CaseTrust-SVTA Accreditation for motoring business. This provides a whole list of legitimate car dealers in Singapore, hence you can be assured when dealing with these companies.
Negotiate for payments by instalments
Unbeknownst to many, there are unethical cases when car dealers leave their consumers in the lurch after receiving large sums of deposits from them. Hence, opting for a full upfront payment is in fact a risky move by consumers. It is best to go for a company that discourages full upfront payment and one that allows for progressive payments, thereby minimising your loss if anything happens. Furthermore, when payments are broken down into different phases, it holds both consumers and the car dealers accountable, and car dealers are less likely to default on their part. One example could be breaking down the payments into 3 parts: firstly, by providing a low initial deposit of $5000 or 20% of the Open Market Value of the car, then the COE bidding deposit payment and lastly, final balance payment.
Getting the additional details
ompared to authorized distributors, parallel importers are required to provide warranty and aftersales services themselves, but most parallel importers do not have their own aftersales facilities, so they relied on 3rd party vendors/contractors to do so resulting in low quality and slow aftersales service when issues arise. As such, consumers are again left in the lurch if the parallel importer does not have their own aftersales facilities. Hence, if you would like extra assurance, then it is better to do a little more research and find a parallel importer that has their own workshop. Although this may come at a higher cost, this would give you a sense of security that your car will still be good and reliable hands even after purchase.
With these tips, you are now a smarter parallel importer car buyer!
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