After two months of delays and frustration with troubled car dealer Royal Automotive, Ms Jenny Tay was promised a refund of more than $47,000.
But to her dismay, the cheque bounced when she tried to deposit it on Monday.
Despite several calls and messages, she could not reach the boss of Royal Automotive.
To make matters worse, Chinese daily Lianhe Wanbao reported yesterday that the lease of Royal Automotive’s Woodlands showroom will end this month.
When contacted by The New Paper yesterday, director of Royal Automotive, Mr Syed Khairil, 27, admitted it was facing cashflow issues, but insisted it was still in operation and was looking for a new location for its showroom.
WORKING CLOSELY
On the issue of the bounced cheque, he said it is working closely with the affected customer to resolve her issue as soon as it can.
Royal Automotive’s financial problems comeeven as its former employee, Chua Peng Jun, was charged in court today with criminal breach of trust. (See report, above.)
TNP understands that at least 20 victims have made police reports against Royal Automotive.
Similarly, the Consumers Association of Singapore (Case) has received 20 complaints about the car dealer since July.
Executive director of Case, Mr Seah Seng Choon, said the number of complaints against parallel importers is not large, but it has seen more complaints recently. (See report on right.)
Last week, Case told The Straits Times that it was considering whether it should flag Royal Automotive because of the number of complaints.
Mr Syed said he will be meeting over 40 customers this week to explain the situation to them.
He said: “We will try our best to help affected parties with the delivery of their cars, but we must operate in line with our legal obligations.
“We continue to be contactable at our office or through Facebook.”
According to checks with the Accounting and Corporate Regulatory Authority (Acra), Royal Automotive was registered last November.
Two affected customers approached by TNP said they were attracted to Royal Automotive because of its lower prices, which are about $10,000 below the market rate.
HONDA VEZEL
Ms Tay, who declined to reveal her occupation, had booked a Honda Vezel in May.
She was supposed to get the car by the end of August after trading in her old car.
She said: “I was initially sceptical so I asked them to show me their other invoices. They had proof that they were able to deliver the cars.
“It is a lesson learnt. I will make sure that the car is in the showroom before putting down any money.”
A customer, who wanted to be known only as Melvin, 40, also admitted that he should have done more research.
He scrapped his old car in anticipation of a new Honda Vezel by mid-October.
He said: “I work in sales so I really need a car. But I already paid a deposit of $20,000 and I have no choice but to hope for the best.”
We will try our best to help affected parties with the delivery of their cars, but we must operate in line with our legal obligations.
– Director of Royal Automotive, Mr Syed Khairil
