I refer to the letter "Buying a new car? Take note", ST Jan 22, contributed by Seah Choon Lim.
It is timely such advise is provided to would-be car buyers in view of the current reports of overwhelming sales. I am one of those aggrieved by such changes last year in 2003.
I booked a Toyota Corolla in January 2003 subsequent to which tax changes were announced and implemented effective April 2003. I took delivery of my car in May 2003. It was clear that the tax changes resulted in reduced duties paid for importing the car and additionally translated in reduction of Open Market Value and scrap values of the vehicle.
I attempted to seek clarification from the agent, Borneo Motors, as to why these reductions are not passed on to the customer when the booking was earlier made on the pretext of prevailing tax conditions. The response came as follows:
"We wish to inform you that the reduction in OMV helps the distributor to lower operation costs and this is in turn passed on to our customers via other means such as the improvement of our service centres' facilities so that we may serve our customers better. This uplift from the Government also varies from company to company."
My initial attempts to highlight this case publicly was unsuccessful. CASE advised that they can mediate but do no more. After much consideration, I decided not to pursue it any further though the entire episode created severe dissatisfaction. My search of internet exchanges indicated that some car distributors were more honourable than others in allowing refunds for this excess windfall which rightly belongs to the consumer in the first place.
As the writer had pointed out, it would be wise for car buyers to insist on stipulations allowing for such refunds in the event of taxation changes favouring the buyers. Intervention by the authorities or CASE to ensure a fair deal goes through would be most welcome. I still cannot fathom how corporate irresponsibility and greed of some agencies can be allowed to exist to extract this extra windfall at the expense of unsuspecting or ignorant customers as well as those who do not have the legal muscle to insist on fair deal.
You should reply to straitstimes!!!
I just booked a Vios from BM not long ago and delivery will be during March/April... hope I won't get affected...