Used car dealers cry foul over lemon law

The Straits Times reported that just six months after the lemon law was implemented in September 2012, complaints on defective goods in the motorcar industry jumped fivefold to 98 cases, compared to just 19 cases six months earlier.

But some used car dealers claim that some consumers are abusing the law, which compels businesses to repair or replace a product found to be defective within six months.

In the latest reported case, Speedo Motoring was ordered to pay businessman Ong Gek Sing $4,500 for a battery.

The battery had failed two months after the company sold a second hand Lexus GS 450 Hybrid Super Lux to Mr. Ong for $138,000 in 2012. The sale came with a $1,800 discount as Mr. Ong had said no to an extended warranty.

The tribunal ruled, however, that although Mr. Ong could claim for the defective battery, he could not do so for the tyres and brakes, which had suffered 'wear and tear'. Speedo Motoring appealed to the High Court, but lost its case.

Lawyers told the local paper that they have noticed an increase in cases where buyers of second hand cars complained about car parts that were worn out as the car aged, rather than defects.

Lawyer Chia Boon Teck said that the lemon law does not entitle a buyer of a second hand car to demand that the dealer replace all the worn out parts with brand new parts, and the age and condition of the car and its parts are accepted by the buyer and reflected in the used car price.