Used car dealer told to return down payment to buyer who backed out


Magendran bought a car from another dealer as it was accident-free.

THE Johor Consumer Claims Tribunal ordered a used car dealer to return the down payment to a buyer who decided to buy a vehicle from another dealer.

M. Magendran went to the first dealer in Johor Baru on April 26 to buy the sedan.

The claimant, who works in Singapore, decided to buy a 10-year-old car for RM64,000.

“I found something wrong with the vehicle’s suspension during a test drive,” he said when met outside the Tribunal at Menara Ansar.

Magendran asked the salesman about it and was told that the car was accident-free and the suspension would be fixed before the car was delivered to him.

He paid RM500 as a booking fee via bank transfer and the salesman informed him that it would take four working days to process the bank loan.

However, he was not issued a receipt for the booking fee.

After making the payment, Magendran asked his friend, a workshop foreman, about the vehicle’s suspension and was told that it could have been caused by an accident.

He was later informed that his loan had been approved.

On arrival at the dealer’s office, Magendran was asked to pay another RM5,900 as down payment.

“I only paid RM3,000 as that was my daily bank limit,” he said, adding that he did not sign any document.

Magendran, however, then went to a second dealer and booked a car for RM63,000.

When he asked the first dealer to return his money, he was refused, prompting him to bring the matter to the Tribunal.

During the hearing before Tribunal president Lim Chee Thim, ordered the respondent to return RM3,000 within two weeks to Magendran.

Outside the Tribunal room, Magendran said he bought a similar 10-year-old sedan from the second dealer as it was RM1,000 cheaper and accident-free.

Those who need assistance on Tribunal matters can call 07-227 1755/1766. ― By ZAZALI MUSA

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