Lemon Law for Used Cars: What Am I Protected From?

Purchasing a used car may help you save some money compared to purchasing a new car, but it comes with a whole new set of problems.

A new car is simple, the mileage is at 0 kilometers, there is no wear and tear yet, and basically everything is brand new.

But, with a used car, it is a completely different ball game.

You may not know what the previous owner(s) may have done with the car, whether or not for a fact the vehicle has been in any major accidents, or even if the mileage on the car has been tempered or not.

There are a whole set of different problems with second-hand cars.

So, the big question is:

“What happens if I realize my car is faulty after I drive it off from the dealership?”

Here is where the lemon law comes into play.

In Singapore, all used cars sold are protected under the lemon law for 6 months.

This means that should there be any defects on the sold vehicle within the first 6 months of purchase, the buyer may seek compensation or redress for the car.

“What if it has been over six months?”

If there is a way to prove that the defect on the car happened at or before the time of handover to the customer, then the seller in this case will still be liable and responsible for the repairs.

“What kind of reimbursement can I seek?”

1. You can request for the seller to fix the defects.

For example, if it is a minor scratch or paint job chip, you can send it back to the car dealership to get them to redo the spray job at the small area for you.

2. You can return the car and request for a refund.

Should there be a major problem with the car, e.g. engine or chassis damage, if you can prove that the damage was done before the handover of the car to you, you can request to return the car for a full refund.

3. You can ask for a reduction in price.

If there is a defect with the car, but you are not looking to return it for a refund, this may be an option. You can ask for a partial reduction in the price of the car sold and do the necessary repairs.

“Is there anything I can do to to protect myself before a sale?”

Before purchasing a car, you can request for the used vehicle to be inspected by a third party provider such as STA or VICOM to check for any existing damages or wear and tear that may be present.

However, these costs will be borne by the buyer unless the seller misrepresents the state the car is in. (e.g. telling you that the car has no problems, but STA or VICOM’s inspection shows otherwise)

The buyer can request the seller to fix all the existing problems found before handover. However, when this route is taken, the buyer is no longer covered under the 6 months of lemon law.

“Does this mean that I can claim for the repairs of an accident within the first 6 months of purchase?”

NO.

There are exclusions to the lemon law, of course. You will not be covered under the lemon law if you do any of the following.

1. Misuse or send the car for any kind of unauthorized repair.
2. If the defect is caused by wear and tear, not an existing defect on the car.
3. If you knew that there was an existing problem with the car when you purchased.
4. If you feel like changing your mind.
5. If you purchased the car from a personal seller, and not a car dealership/company.

“What is the difference between warranty and the lemon law?”

Warranty can be issued from the original agent that sold the car. For example, a BMW can still have it’s warranty under Performance Motors.

The lemon law covers all vehicles sold, regardless of whether or not the company you purchase it from offers you an in-house or agent warranty.

Some used cars when purchased still have their existing agent warranties that may last for a couple of years.

Thoughts

In Singapore, car prices can be exorbitantly high. Depreciation costs can easily go over 5 digits a year here for mid-range luxury cars.

Price is a concern and deciding factor for most car buyers. It is important to understand your rights and protection against sellers who may understand the vehicles more than you do.

If you’re looking for a car dealership that covers you under the lemon law, take a look at Carro’s range of used cars here! Contact Clarice @ 91824752 for a discussion on your new vehicle today.