Ceylon Motor Traders set standards for vehicle deals in Sri Lanka

Sep 02, 2015 (LBO) – The Ceylon Motor Traders Association last week ceremonially launched their ethics code as a move to boost public credibility in the automobile industry.

The ethics code includes 46 key proposals that are to be adhered to by 26 member firms of the association.

The membership of the 95-year long association is solely confined to those holding a franchise or distributorship of brand new motor vehicles.

Associated Motorways, David Pieris Motor, Diesel & Motor Engineering, Lanka Ashok Leyland, Prestige Automobile, Toyota Lanka, United Motors Lanka, Stafford Motor and Senok are few members of the association.

Listed below are key proposals that would clear possible disputes with consumers.

Quotations for sales and service

The preparation of a quotation by a member will be treated with care, as the acceptance of a quotation may constitute the basis of a contract between the member and the consumer.

– Quotes will be as per the current exchange rates and not based on previous rates unless if a customer specifically has a need to make a purchase at a future date.
– A validity period is a must.
– Indicate all charges to be borne by the customer so that it avoids and surprises at latter stages of the contract.

Invoicing

Invoices issued by a member will:
– Give full details of the work carried out and charges for labour, spare parts, materials, parts disposal, environmental levies and subcontractors used; and
– Record dates and odometer readings where applicable

Declaration of CIF values

A member expected to declare the CIF values of the vehicles imported by them for the purpose of valuation by the authorities as per given guidelines and to the exact purchase value.

All members have to stick to the above principle and at no instance the values should be tempered with. However this rule does not block the possibility of special pricing for bulk purchases, subject to it not deviating by a maximum 30 percent.

Contract of Sale

When selling a vehicle, a dealer will use a contract of sale from which makes clear to both parties all terms and conditions upon which business is being done.

Warranties

Before delivering a new vehicle, a dealer will draw to the attention of the consumer the terms of the manufacturer’s warranty and provide the consumer with any relevant documents.

Any commitment made to a consumer which is not inclufed in, or covered by, the manufacturer’s warranty or any other warranty form will be clearly set out in writing and signed by the parties before.

Financing

A dealer will not:
– Ask a consumer to enter into contract to finance the purchase of a vehicle without explaining the repayments and charges required by law
– Advertise a method, or indicate that a method is available, for financing the purchase of a vehicle which is not permitted by law or is misleading.