How Special Vehicle Firms Avoid Contract Fraud

A few days ago, Hengtian Automobile Co., Ltd., located in Suizhou, had a major contract fraud case. The cause of the incident was that a dealer who had frequent cooperation with the Hengtian Group introduced to the company an order of 20 sets of 8 dump trucks worth more than 4 million yuan. The customer promised to pay the vehicle within 10 days after the vehicle was delivered, but after 10, the Hengtian Group has not received the payment.

After the Hengtian Group reported the case, after investigation by the public security agency found that because the car buyers owed more than 9 million yuan in debt, these vehicles were used to make mortgage financing. Fortunately, the last 20 dump trucks were all recovered. Although things are in danger at the end, such matters as contract fraud are worthy of attention within the entire private car industry. Then, how do special vehicle companies and distributors prevent contract fraud from happening?

There must be principles for signing contracts

First of all, companies must pay great attention to signing contracts. For large orders involving large sums of money, special vehicle companies or dealers need to check with the company's lawyers when signing contracts, and strictly follow the requirements of the contract. Companies and dealers should not give up the principle that they should be because the orders are too tempting.

Some users have moved their brains out of the car in order to allow the car to pull goods. As a special-purpose vehicle company at this time, it must have a very clear sense of law, and all orders that violate national laws and regulations must be resolutely abandoned. Because such a contractual agreement is ultimately invalid.

Comprehensive understanding of car buyers information

The payment method of the user is related to the final payment situation. In general, there are three payment methods for individual users to set a car, namely, the way of paying the car after the first payment, the car to the payment and the deposit plus the final payment. In most cases, the user’s payment method tends to pay a portion of the deposit first, and the payment is paid after the vehicle arrives. For car buyers who often cooperate with companies, their payment method is usually car to payment.

If the user is paying the full amount before picking up the car, then the company and the dealers can have a good night's sleep, but this situation is generally very small. In most cases, the deposit is added to the balance. This situation is more risky for the enterprise. Therefore, the special vehicle company and sales personnel should minimize the amount of the final payment, so that even if the final payment is difficult to recover, the impact on the company and individuals Not too much.

If it is car-to-pay, then companies need to sign a payment agreement with the car buyer in advance. Of course, with this agreement, there is no guarantee that the final payment can be successfully recovered. This requires companies to have one more eye and one more investigation. Enterprises and marketing personnel must understand the economic strength and social credit status of car buyers in many aspects. The contract fraud case that Hengtian Group emerged was largely based on the fact that the user’s economic situation was not understood in advance, but it was based solely on the trust of the better-disposed dealers.

Where are the funds for the unit order?

Orders of government and government agencies due to the large volume of purchases, the amount involved is large, the payment method may be to take a part of the deposit in advance, after the car to pay the final payment. Therefore, when signing a contract with government and government agencies, the company needs to know more about the sources of funding for government and government agencies.

If it is the country's special procurement funds and project funds, companies can safely sign contracts with these units. However, if the source of funds is the self-financing of government and government agencies, enterprises must be very careful when signing contracts with these units.

As far as the entire private sector is concerned, the situation of non-receivable receivables is prevalent in every enterprise. Because of this, special car companies and dealers have a good understanding of the requirements of car buyers and car buyers, the signing of car purchase contracts, and the source of funding.

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