New checklist to help second-hand car buyers, dealers

SINGAPORE — With complaints about defective second-hand cars forming the bulk of the cases it has seen in each of the past five years, the consumer watchdog has come up with a list of car parts that potential buyers should check before signing off on deals.

Developed after consultation with motoring industry players such as the Automobile Association of Singapore and the Singapore Vehicle Traders Association (SVTA), the checklist may be downloaded from the websites of the Consumers Association of Singapore (Case) and sgCarMart.
 

Case said that with this checklist, both buyers and dealers may protect themselves better, to help prove that the second-hand vehicle was not defective at the point of purchase. Disputes may arise or be difficult to resolve later if the vehicle’s condition at the time of purchase cannot be determined.

This Standard and Functional Evaluation checklist comprises two sections. In the first, dealers should check — together with consumers at the point of purchase — the air-conditioning, tyres and lights, among other parts. Dealers and buyers should also be present during the inspection of the car before the sale. 

The second half of the checklist is for professional evaluation centres such as STA Inspection or Vicom, to check on such things as fluid levels, suspension systems and the engine. Case urged consumers to get their pre-owned cars sent to these centres for checks before committing to the purchase, noting that the engine and gearbox are most commonly reported to be defective for second-hand vehicles.

Last year, about half of the complaints (1,477 out of 2,916) received by Case on the motorcar industry involved defects in cars. Apart from that, about six in 10 of the filed and assisted cases it handled involved pre-owned cars. 

In the first two months of the year, there were 221 complaints on defective goods in the motorcar industry, forming more than half of the 419 complaints on cars. 

About seven out of 10 consumers who approached Case for help had not sent the car they intended to buy to a professional evaluation centre for checks.

Under the Lemon Law, a car dealer has to prove that the vehicle was not defective at the time of delivery, if any defect was found within six months of delivery. 

At the launch event on Thursday (March 16), Ms Sim Ann, Senior Minister of State for Trade and Industry, said that the checklist would help consumers “minimise the risk of getting a ‘lemon’”. It will also guide businesses “on the quality and performance standards expected from consumers”, she added. 

Consumers and dealers who spoke to TODAY generally agreed that the checklist would make things clearer for both parties involved in the transaction.
 
SVTA will be advocating that all its 380-odd members make use of it, with copies available at all member companies.

For drivers such as Mr Chris Goh, the checklist is a step in the right direction, but he felt that there were some “grey areas” not addressed, such as wear-and-tear issues. 

Mr Goh, who bought his pre-owned car last year but later sold it after problems arose, would like to see a list of accredited car traders or those with good track records. This might help consumers make more informed choices, especially for first-time buyers of second-hand cars, he said. 

Events producer Kenneth Neo, 34, raised some problems that second-hand-car buyers face, such as tampering with the odometer and “fraudulent misrepresentation” of the value of cosmetic repairs to the car. 

There could be serious implications in tampering with the odometer, as servicing cycles and maintenance are based on set mileage intervals, he said. If the mileage has been adjusted without the buyer’s knowledge, they would not have an accurate picture of the car’s reliability.

“The new checklist only addresses a small part of a much bigger problem with the second-hand car industry,” Mr Neo said.