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Due to the Circuit Breaker measures, only businesses providing essential services can continue operations between 7 April 2020 to 4 May 2020. Unfortunately, the sale of cars is not among the list of essential services.
However, that does not mean it is impossible to purchase a vehicle during this period.
In this article, we’ll discuss everything you need to know about purchasing a car without breaking the Circuit Breaker measures.
Can I Purchase a Car from a Used Car Dealer?
Unfortunately, the answer is no. As mentioned, the sale of used cars is not considered an essential service. Whichever way you look at it, it is impossible to visit any second-hand dealer as most, if not all, are closed during this period. If you’re upset over this, put yourself in the shoes of these business owners. Just imagine a fleet of used cars that is left collecting dust while their COE lifespan continue to run down!
Can I Purchase a New Car?
Similarly, the answer to that is a resounding no. Although Authorised Dealers and Parallel Importers usually have an abundant supply of Temporary COEs (TCOEs) to meet any unexpected demand, their business operations are temporary halted. This means that no matter the arrangement, it will be impossible to come out with something without breaching the law.
1st Alternative: Arrange For a Private Transfer
Vehicle ownership can be transferred between a buyer and seller. It does not need to happen from a showroom, nor any specific places. Both parties simply have to make arrangements with accordance to current safe distancing measures.
However, the official handover of the vehicle would still require physical presence, which would breach the social distancing measures.
One possible solution, would be to delay the physical handover of the vehicle. If both the buyer and seller are agreeable with the selling price, a physical transfer can take place after the end of the Circuit Breaker.
2nd Alternative: Get A Consignment Agent
If the process of a private transfer is too complicated, especially if bank loans are involved, you should get a consignment agent
Consignment agents are just like second-hand dealers, except they do not have a shopfront, nor do they have an inventory of cars.
Their job is to simplify the entire process for both direct buyer and sellers. The agents will assist them with the entire process, like the signing of sales agreement, application of bank loan, insurance and LTA transfer. Having necessary paperwork in place helps protect both parties from potential blind spots and avoid any headaches.
Typically, they provide their services for free if you approach them to assist with the paperwork. They only charge an admin fee between S$500 to 1% of the sales if you need their assistance to find a buyer or seller.
Depending on the arrangements of the consignment agent, you can still strictly adhere to the rules and regulations without infringing or flouting any laws.
For instance, any paperwork can be done digitally, and signatures will be obtained through a courier service.
Who Should I Enquire about Consignment Deals?
At Motorist, we have a list of used vehicles that are readily available for purchase. These vehicles have been closely evaluated by our professional representatives prior to the implementation of the Circuit Breaker.
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