Christopher Tan , Senior Correspondent
From this month, you will spot CaseTrust decals on the shopfronts of 39 parallel importers and used car traders.
It may not seem like a big deal, but being accredited by CaseTrust - a consumer watchdog's stamp of approval - is a giant step forward for these motor traders, long deemed the poorer (and sometimes shadier) cousins of authorised dealers.
To secure the accreditation, the companies - selected from 66 which applied - had to meet fairly stringent criteria, including being financially sound and having a decent track record.
They each had to put up a $50,000 insurance bond, which will be used to help settle any customer disputes that might crop up.
These firms will, of course, avoid disputes if they meet all the conditions set out by CaseTrust, such as having clear, fair and transparent sales contracts that spell out what a buyer can expect.
For instance, new cars will be delivered within 90 days, and used vehicles within 30 days.
If cars are not delivered within those specified periods, customers can seek compensation (terms also spelt out).
There will be no false advertising, and any complaint must be resolved within seven days.
In short, they are rules set out to clean up the image of the trade.
To be sure, the firms will try to honour what CaseTrust represents, because the stamp can make a big difference to them.
It gives them a chance to stand out from the crowd (of some 600 motor trading firms), and be on a par with the more respectable authorised dealers.
Indeed, if these traders deliver what they promise as members of CaseTrust, the authorised agents might soon have little advantage besides glitzy showrooms and manufacturer- backed after-sales service.
It hasn't come to that, yet.
But it is a big wake-up call for the authorised agents that if they don't act and act fast, they will invariably have to share more and more of their lunch.
Maybe not tomorrow, but not long after.
The CaseTrust programme demonstrates yet again the unity among members of the Singapore Vehicle Traders Association (SVTA), a body of parallel importers and used car traders.
Members have been able to work together towards common goals, lobbying for several legislative changes in recent years.
Because of their lobbying, unsold used cars can now be used as rental cars; imported used cars are now eligible for scrap rebate; scrap rebates can now be paid in cash; and vehicles retrofitted to run on compressed natural gas are now accorded green tax breaks.
These are among a slew of changes which have benefited parallel importers and used car traders.
In contrast, the authorised dealers have been largely disunited.
In recent years, the Motor Traders Association (MTA) - far older and more established than the SVTA - has appeared to be unravelling.
The biennial Singapore Motorshow, organised by the MTA since 1992, has seen dwindling participation.
In 2006, the major European brands dropped out.
Last year, there were only three participating brands: Honda, Nissan and Subaru.
Car companies have also been resigning from the MTA.
In the last few years, distributors of Proton, Saab, Rolls-Royce, Peugeot, Citroen and Renault have left the fold.
In recent weeks, Daimler, BMW distributor Performance Motors and Audi agent Premium Automobiles quit.
The exodus, as well as the rise of parallel imports, is reflected by sales figures.
A decade ago, MTA sales accounted for over 90 per cent of new car sales here.
Today, the figure is around 77 per cent.
MTA members The Sunday Times spoke to said membership served no real purpose other than the sharing of sales data.
The self-interest of each authorised agency has proven to be the undoing of the association, others said.
For instance, those which sell mainly small cars do not care to lobby for policy changes affecting big cars.
And those selling continental cars do not care to lend their voices to policies - such as emissions standards - affecting Japanese cars.
This disunity will not do the authorised dealers any good, especially in the light of the growing influence and acceptance of parallel importers.
But what is the future for authorised agents, anyway?
In the past decade, we have seen carmakers taking back distributor rights, swopping dealers, and even assuming the role of retailer themselves.
It is not unforeseeable that one day, all manufacturers will become their own importer and retailer here.
Where will that leave the authorised agents?
If that happens, these companies will have to either source for new emerging brands to represent (from China and India, for instance), or resort to parallel-importing. If that is an eventuality, perhaps the MTA should consider an alliance with the SVTA today.
christan@sph.com.sg
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