Singapore’s Lemon Law: Here’s 8 Things You Need To Know!

Lemon Law, implemented in Singapore in September 2012, is to protect buyers from defective goods, safety, and quality standards determined in the deal at the sales time of purchase. If a car buyer ends up buying a “lemon”, they now have formal legal recourse against their dealers. Below are some Q&A(s) regarding the Lemon Law.

Does The Lemon Law Apply To Owners Who Sell Their Vehicles To Dealers?

The law only covers business-to-consumer transactions. In many cases, under the current Sale of Goods Act, a dealer can still sue a customer for selling him a vehicle that doesn’t comply with the terms that they agreed upon in the deal.

Does The Lemon Law Cover Used Vehicles?

Yes, pre-owned vehicles are covered by the Lemon Law. Individuals of the Singapore Vehicle Traders Association (SVTA) came together and conceived a pre-purchase checklist to protect themselves and their customers after the Lemon Law became effective. However, buyers must remember that used cars cannot perform as well as new ones.

Time Frame To Claim Lemon Law

You can file a Lemon Law claim within 6 months of your purchase should you find any defect in the goods purchased.

What If I Only Discover A Vehicle Defect After Six Months?

The onus will be on the buyer to prove that the fault existed when he took the conveyance of the vehicle.

Are Vehicle Dealers Obliged To Solve Such “Lemon” Issues?

The dealer is legally bound to resolve the issue and complete the necessary repairs when a fault is reported within 6 months. The customer is qualified to request a full or partial refund if the dealer is unable to complete the repairs within a reasonable timespan or makes extraordinary inconvenience to the customer. Should the buyer request for a replacement vehicle, the replacement vehicle doesn’t have to be new.

What If The Dealer Refuses To Remedy The Defect?

You can bring up the issue to the Consumers Association of Singapore (CASE) and have them investigate the issue on your behalf if the dealer refuses to follow through on a faulty product sold to you. CASE is a non-profit, non-governmental organization committed to ensuring the consumer interest.

Is One-For-One Replacement Compulsory Under The Law?

A replacement is not compulsory. The dealer can offer to remunerate the buyer instead.

What Are The Lemon Law Remedies Available To The Buyer?

1. Repair of the faulty product within a reasonable time at the seller’s expense; or

2. Replacement of the faulty product within a reasonable time at the seller’s expense.

However, the buyer may request a reduction in price or a full refund if the expense is impossible for the seller.

 

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