Important notes from the Competition Authority that car buyers must know.

The desire to buy cars for the Lunar New Year holiday and the reduction of import taxes on cars within the ASEAN region from 30% to 0% effective January 1, 2018, are the main reasons why the car market is so vibrant in the days leading up to the 2018 Lunar New Year.

However, in reality, there have been many cases where customers have been disadvantaged when signing car purchase contracts without fully understanding the terms and conditions.

To protect the legitimate rights of consumers, the Competition and Consumer Protection Department of the Ministry of Industry and Trade advises on several points to note regarding deposits for car purchases and cases of price changes at the time of transaction.

You will receive double your deposit back if you do not receive the car.

Typically, when a vehicle is not yet available at the dealership, the dealer will require the consumer to pay a deposit to confirm the purchase. According to the 2015 Civil Code, this deposit is intended to "ensure the conclusion or performance of the contract" (Article 328 - 2015 Civil Code).

However, in reality, there have been instances recently where, when there were no vehicles available to deliver according to the signed contract, the dealership simply resolved the issue by returning the deposit to the consumer.

Car buyers need to be aware of some important information when making a deposit to ensure their rights are protected.

According to Article 328 of the 2015 Civil Code: “If the depositor refuses to conclude or perform the civil contract, the deposited property belongs to the recipient of the deposit; if the recipient of the deposit refuses to conclude or perform the civil contract, they must return the deposited property to the depositor and an amount equivalent to the value of the deposited property, unless otherwise agreed.”

Therefore, during the deposit and contract signing process, consumers should carefully read the regulations in the deposit agreement between the two parties. Unless otherwise agreed, if the dealer has received the deposit but does not have the vehicle to sell to the consumer, the dealer must return the deposit and an additional amount equivalent to the deposit paid by the consumer.

For example: If a consumer places a deposit of 100 million VND to buy a car but the dealership fails to fulfill the transaction, the dealership must pay the consumer the equivalent amount of 200 million VND.

Dealers are not allowed to change the price when delivering the vehicle.

Recently, many consumers have complained about being forced to buy cars at prices higher than those stipulated in the contract when placing a deposit. In reality, when faced with such situations, consumers often follow the dealer's instructions, such as writing a voluntary withdrawal request or accepting the higher price. However, by doing so, consumers are allowing dealers to infringe upon their legitimate rights.

According to Article 16 of the Law on Consumer Protection, businesses are not allowed to include clauses in standard contracts and general terms and conditions when entering into agreements with consumers that permit organizations or individuals trading goods or services to set or change prices at the time of delivery of goods or provision of services.

Therefore, before signing a contract with a dealership, consumers need to carefully read the terms and conditions. If they find any clauses that allow for price changes at the time of vehicle delivery, they can request the dealership to remove these clauses from the contract.

Furthermore, the Competition and Consumer Protection Department has recently received numerous consumer complaints regarding dealerships delivering cars without accompanying parts and accessories such as spare tires, tool kits, and owner's manuals. Therefore, before accepting a vehicle, consumers should carefully check the included parts and accessories that are publicly listed on the car manufacturers' websites.
The Competition and Consumer Protection Department stated that in case of needing advice, consumers can contact the consumer support hotline: 1800.6838 (toll-free) or Email:[email protected].