CASE sees rise in complaints over pre-owned cars; mileage tampering among issues flagged

Industry insiders warn that rising competition in the pre-owned car market is driving some unscrupulous dealers to tamper with odometer readings. In the first eight months of this year, the Consumers Association of Singapore (CASE) received 163 complaints about pre-owned cars, compared to 116 over the same period last year. Of these complaints, 22 involved suspected mileage tampering.

A CNA reporter accompanied a car dealer, identified as M, to an inspection where vehicles were examined before being bid on in an online auction. Dealers check the condition of cars' interiors, the engine compartment, and verify mileage, which is a crucial factor as lower-mileage vehicles generally sell faster. During the inspection, a car with a recorded mileage of around 125,000km was observed. Three days after the auction, the same car appeared on a popular car website with reduced mileage of 88,000km.

M explains that dealers may be able to verify the mileage by comparing it with earlier servicing records from an authorized distributor. However, if several years have passed since the last service, it becomes more challenging to verify the mileage. A false reading can obscure potential issues with the vehicle and lead to warranty disputes. Some warranty policies exclude wear-and-tear parts, leaving buyers unprotected if problems arise.

The Singapore Vehicle Traders Association (SVTA) acknowledges that some dealers tamper with mileage and urges the practice to be discouraged. Members are reminded to operate with transparency and integrity. Dealers mentioned that margins in the used-car trade have shrunk as online platforms make it easier for buyers and sellers to compare prices.

Profits have fallen to around S$1,000 to S$3,000 (US$780 to US$2,350) per car, down from previous figures of S$10,000 to S$20,000. With fewer profits, dealers are forced to sell more vehicles to maintain their revenue. High-mileage cars tend to attract fewer inquiries and sell more slowly, tempting dealers to tamper with mileage to make the vehicles more marketable.