3. Parliamentary replies
Written reply to PQs on Trend where defects in leased or hire purchase vehicles were not reported but vehicles were bought back and resold at higher prices
8 April 2025
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Questions
Dr Tan Wu Meng: To ask the Deputy Prime Minister and Minister for Trade and Industry (a) in the last two years, how many reports have been received by the Ministry where defects in vehicles on lease or hire purchase agreements were discovered within six months but belatedly reported; (b) how many cases involved vendors buying back defective vehicles and selling them at a price significantly above the buyback amount; and (c) whether there is evidence of such practices becoming an emerging business model to extract disproportionate amounts of profits from uninformed purchasers.
Dr Tan Wu Meng: To ask the Deputy Prime Minister and Minister for Trade and Industry (a) how many reports were received by the Ministry in 2023 and 2024 of hire purchase firms allowing buybacks of cars sold with undisclosed defects, under express or implied assurances that penalties for contractual breaches will be waived, but which then levy such penalties on hirers and their guarantors; and (b) what assistance is available for hirers of limited means in such situations.
Written Answer by Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong
1. In the past two years, the Ministry of Trade and Industry has received only one report matching the description that the Honourable Member has outlined in his questions.
2. Under the Lemon Law outlined in the Consumer Protection (Fair Trading) Act, businesses must repair, replace, or refund consumers for defective goods if a defect is found within six months of delivery. Consumers may approach the Consumers Association of Singapore (CASE) for assistance in seeking redress from suppliers, including errant car dealers. CASE can represent a consumer in negotiating a settlement or mediating with the car dealers. If negotiation or mediation fails, consumers may file a claim with the courts, including the Small Claims Tribunals.