Car purchase compussory insurance tie in

[Caston]

After navigating the world of COE, PARF, ARF, depreciation, OMV etc we are in the process of purchasing a second hand car. We have negotiated a price with the dealer who is selling on consignment for a private seller. We have had to pay an admin fee to the dealer (we factored this into our price offered), the vehicle has been evaluated by STA and has come up as B grade as agreed and the finance has been agreed. So we are almost there. Today the dealer rang with 3 insurance quotes which turn out to be about $100 more than what we can get direct with the insurance companies. The dealer has said we our bound by our contract (in which there is no mention) to take the insurance through them. Here are my questions. Is this true? He has said it is in their terms and conditions which we have never seen and to which the contract doesn't refer. We know he is receiving a commission from teh insurance but what are our rights? any ideas I know $100 is not a lot but I am just a little sick of these extra fees, are we been taken for a ride????

[taxico]

some used car dealers will insist you take the insurance package through them... not always, but not uncommon, especially when you're doing financing through them.

if i've paid in full for the car and if it's not stated anywhere on a piece of paper you've signed, i would argue my way out of it.

that what i did the last time when the salesman's boss stepped in to inform me the salesman had "neglected" to inform me about the insurance shebang.

but in your case... i might just take it as a lesson learned if they refuse to give in.

[Strong Eagle]

They won't lose the sale over $100 on an insurance policy. First, ask them to meet the quotes you have. Second, threaten to walk away.

[ScoobyDoes]

The dealer has said we our bound by our contract (in which there is no mention) to take the insurance through them. Here are my questions. Is this true?

Just ask him to show you where it says so in the contract.

[taxico]

the dealer has his/her deposit, so... kinda at their mercy, i think.

plus their insurance "commission" is probably more than $100...

[Strong Eagle]

the dealer has his/her deposit, so... kinda at their mercy, i think.

plus their insurance "commission" is probably more than $100...

There is the first mistake... I would never give a dealer a deposit, never. When the loan is approved, I'll bring my down payment. No car is worth a deposit in Singapore that I've ever seen... there are too many of them... and the COE/PARF stuff means that similar cars are very similar in price... can always go find another one.

[Caston]

Thanks for the advice. The dealer did in fact back down. I guess you can't blame the guy for trying.