02/02/08 - The National Institute for the Defense Users and Consumers (INDECU) closed 14 car dealerships in Maracaibo and another 40 throughout Venezuela. 

Jorge Domínguez, National Audit Director of INDECU stated that these dealerships will have to demonstrate the transparency of their selling prices and give evidence about their actual buying cost of the vehicles in stock. 

 “There are innumerable reports and much price speculation with vehicle prices. Our operations will be permanent up and down the country. We know that there are irregularities and our job is to protect the consumer at every turn. We are going to check out when vehicles come in, how they are sold, how transactions are carried out, verify any price increases and irregularities such as other means of paying when the transaction is made, if the regulated prices are being respected and if the dealers are obliging the client to buy insurance from the company they want. In this operation the availability of spare parts will be checked as well as problems with guarantees”. 

The daily newspaper Panorama informed that in Maracaibo fourteen dealerships were closed yesterday by the INDECU alter this organism had received many complaints about irregularities when buying a new car, one of which was the excessive price increases being imposed. 

According to INDECU’s regional coordinator in Zulia state, René Carmona, the measures taken will be country wide and will be imposed to stop price speculation in vehicle sales. Inspections took place in dealerships located in Maracaibo, Santa Barbara and the Eastern Shore of Lake Maracaibo itself. The dealerships were closed down yesterday (Friday, February 1st) and will not be allowed to reopen until next Wednesday. 

Upon proving irregularities in sales pricing, dealerships can be fined up to Bs.F.800 thousand (US$372,000) or closed down for 90 days. The operation started yesterday and will continue until the Carnival vacation is over and several businesses were also closed in Caracas. 

Waiting lists for vehicles to be purchased under the “Venezuela movil” program, where sales tax waived and for other vehicles, will also be checked, so that regulations are not breached, stated Carmona. 

“It seems correct to me that dealerships should be closely monitored, since price increases have been too much. A spare part for my car costs me double in Maracaibo compared to other parts of the country. I went to Punto Fijo and Valera and the part cost me between Bs.F 300 – 400 more in Marcaibo,” explained a customer in Centro Vas (Volkwagen) in Maracaibo.

Dollars

Amongst the anomalies which allegedly occur in dealerships is the purchase of US dollars on the black market. 

Carmona indicated that all imported vehicles should be bought with dollars approved by CADIVI – the Exchange Control Commission. “If we arrive at a dealership where vehicles were bought with preferential CADIVI dollars and this is not clearly stated in a sign visible to the customers, this will also be reason for closure.” 

A technical commission of INDECU will undertake the investigations from Wednesday onwards to verify if sales are being conducted legally or not. 

 “We will carry out inspections using the billing mechanisms in the dealerships’ database,” Carmona confirmed. 

Vehicle selling prices were up 40% in the final quarter of 2007 and according to the sector this was due to inflation.

“At the end of December I was interested in buying a Kia Cerato 2007 and the selling price at that time was Bs.F. 52 thousand. The dealership told me that they did not have that model in stock and that a price increase would apply. One week later, in January, the dealership informed me that the vehicle was about to be delivered and that the price was now Bs.F. 56 thousand. Three days later it was priced at Bs.F 58 thousand. One week later, when the car arrived at the showroom, the price was Bs.F. 61 thousand. Finally, when I went to actually reserve the vehicle the manager told me that the price was now Bs. F 68 thousand,” stated Maracaibo engineer, Carla Moreno.  

The INDECU regional coordinator reconfirmed the 14 closures in Maracibo but did not detail the make of vehicles being sold or the names of the dealerships. 

Original Link (Spanish): http://www.aporrea.org/contraloria/n108503.html

Translation by Axis of Logic