Judiciary Probes Fardamotors Case; New Pre-Sales Banned Until Overdue Obligations Are Settled

The judiciary has entered the case of Fardamotors customers by halting new pre-sales of its vehicles until prior obligations are settled. Some of these customers have been waiting more than two years for delivery of the cars they registered for. The Fardamotors case has once again brought the issue of oversight of vehicle pre-sales in Iran into focus; a company that ...

0 Posted by: Mustafa Masoumpour on October 21, 1405 at 22:17

By preventing the pre-sale of new Farda Motors cars until the assignment of previous obligations, the judiciary has entered the case of customers, some of whom have been waiting for the delivery of their registered cars for more than two years.

The case of Farda Motors has once again brought the issue of pre-sales supervision in Iran into the spotlight. A company that is faced with about 9,000 undelivered cars in four provinces and now faces a new limitation to attract financial resources from new customers.

According to the published report, during the review of this case, the judicial authorities have announced that Farda Motors will not be able to receive money and create a new commitment through the pre-sale of the car until the previous commitments are fulfilled. Also, in case of violation of this decision, the issue can be followed by legal action and if the necessary conditions are met, it can be accompanied by criminal prosecution.

This decision has been taken in a situation where a number of customers, despite paying their contract amounts, are still facing long delays in receiving the car; An issue that has raised serious questions about how to manage the company's obligations and the performance of regulatory bodies.

From the promise of delivery in several months to the expectations of several years

According to published information, Farda Motors started selling cars with a delivery time of 120 working days from 1402. However, of the 782 vehicles that were overdue, 350 vehicles were delivered to customers in 1404, and the remaining 432 vehicles remained on the backlog.

Some buyers also claim that the gap between the time announced in the contract and the actual delivery of the car has reached about two years or more in some cases. The continuation of such a situation, in addition to imposing economic costs, financial planning and life of buyers will face serious problems.

Meanwhile, evidence points to the company's continued offering of cash and installment sales plans, even with short-term delivery dates, along with outstanding commitments. The same issue has raised criticisms about the proportionality of the actual capacity of car production and delivery with the volume of new sales.

From a consumer rights perspective, the main issue is not simply the delay in delivery; Rather, companies should clearly define their ability to fulfill current obligations before receiving money from new applicants. Fresh sales, without providing a reliable schedule for the delivery of previous vehicles, can widen the range of losses and uncertainty for customers.

Increased costs and disputes over customer rights

Another criticism of customers is related to the increase in prices and side costs. In some sales plans, the increase in received amounts has been met with objections from buyers, and the issue of necessary permits from responsible institutions has also been discussed. Customers also complain about paying costs such as insurance, tolls and other amounts related to car delivery. In addition to these cases, published reports point to a three percent delay profit; According to some customers, even the payment is sometimes delayed until a few months after the delivery of the car.

In an economy where inflation quickly reduces the purchasing power of money, delay compensation with limited amounts cannot necessarily cover the actual loss of the buyer. A person who paid his capital to buy a car months or years ago, in case of a long delay, may face a significant increase in the price of the car and the loss of the possibility of buying a replacement.

Also, the reports refer to the claim of receiving a written commitment from some customers to waive legal pursuit in the car delivery process.

Responsibilities of supervising institutions against unfinished pre-sales

The entry of the judicial system can be a step to prevent the spread of delinquent obligations, but stopping new sales alone will not solve the problem of existing customers. The main priority should be to provide a clear plan for the delivery of the remaining vehicles, announce the exact number of commitments, set a realistic schedule and be accountable for the amounts received.

Along with the responsibility of the company, the performance of the supervisory bodies should also be examined. If the car delivery obligations were not fulfilled for a long time, the question arises why the control of the production capacity, the sales amount and the process of fulfilling the obligations were not done on time and what mechanism was there to prevent the repetition of this situation.

Effective monitoring should not be activated only after the increase of complaints and the entry of the case into the judicial system. Examining the financial and production capacity of companies before issuing a sales license, continuous monitoring of obligations and publishing clear reports on the delivery status can reduce the possibility of repeating such cases. On the other hand, customers should not have to follow up between different companies, agencies and institutions for months to receive the car that they have paid for according to the contract.

Is it still profitable to pre-sell a car? No with the new pricing law!

A facility of 400 million Tomans with 8% interest was approved for the renovation of used cars

The new vehicle supply system of the Ministry of Security will be launched soon

Which car has the highest profit margin in the sales plan of imported cars?

The case of Farda Motors has now become more than a dispute between a company and a group of buyers, it has become a test for the efficiency of the car market monitoring system. The result of this case can restore the lost trust of customers when, in addition to preventing the creation of new obligations, the duties of previous buyers are clarified in practice and with a specific schedule.