‘Lemon’ law and getting the best deal on used cars

The problem with buying used cars is that some second-hand car dealers are unscrupulous and take advantage of buyers, most of whom have little mechanical knowledge.

That is why the ratio of used car sales to new car sales is less than 1:1 unlike developed markets such as the US or Europe where the level of trust is higher and about two used cars are traded for one new car transacted.

While most of us support a “lemon” law to protect car buyers against exploitation by used car dealers as recently discussed by Alexander Nanta Linggi, the domestic trade and consumer affairs minister, the proposed law should also include new cars.

The “lemon” law originated in the US which used to be the largest car market in the world. It was legislated to protect car buyers from car companies that manufactured badly engineered cars such as the Chevrolet Corvair launched in the 1960.

All lemon laws sprung from American political activist Ralph Nader’s crusade in the 1960s against defective designs and car companies which knowingly manufactured them in deference to cost accountants.

I would like to suggest that buying an extended warranty as suggested by the Federation of Motor and Credit Companies should only be considered if the used car buyer diligently practices the duties as demanded by the terms and conditions of the extended warranty or insurance policy issuer.

Generally, it’s very hard to claim on these extended warranty policies. Good in theory but difficult to prove and claim especially when the used car buyer is not mechanically inclined.

While it’s not an either-or-situation, a lemon law is a far more powerful step in the right direction to protect the used car buyer.

Another practical solution to achieve a satisfactory outcome is to buy from on-line trading platforms such as Carsome, myTukar and the granddaddy of them all, Mudah.

These car trading platforms have their own technical teams that can inspect used cars to verify the legality and the mechanical condition.

The advantage to the seller is a higher resale value if the car is verified as a legit and mechanically sound vehicle while the buyer is more assured that he or she is getting a genuinely pre-loved car and not some flood-damaged car or re-joined wreck.

Vehicle Inspection Management Systems Asia is another independent inspection service provider in Malaysia specialising in high-end cars and with a 1,000 point inspection system provided jointly with a Japanese auction house.

The tampering of odometers is illegal and used-car buyers, especially of Toyota Alphards and Vellfire MPVs with suspiciously low mileages should know that they are protected under the Consumer Protection Act and Hire Purchase Act.

It would be timely for relevant government agencies such as the domestic trade and consumer affairs ministry and the Malaysia Automotive Robotics and IoT Institute (MARii) to enhance the standardisation of these inspection services for the benefit of used-car buyers.

Paul David, a retired industry veteran, said ideally the vehicle inspectors should possess trade certification and at least five to 10 years of experience in the trade.

Talking about lemon cars, I’ve a predilection for used cars stemming from my ownership of used motorcycles as a student, then as an undergraduate.

Also, as a young graduate earning RM900 a month in 1980, it had to be a used car if I wanted to save any money. My first car was a used Morris Minor ragtop. Over the years, I’ve owned most models of the popular brands but always as used car deals.

About four years ago, I acquired a 2010-registered Peugeot 3008 from my cousin in Penang who complained that it was a lemon and who offered it to me on condition that I settled the outstanding but nominal workshop bill.

With his warning still ringing in my ears, I gingerly drove the car back to KL. As the journey progressed southwards, the dread of a breakdown and being towed by PLUS Ronda faded away, to be replaced by the joy of the uneventful drive.

I sent the car to the Peugeot service centre in Glenmarie for maintainance according to the schedule. A few months later, I received a call requesting me to return the car for a recall and change of air-conditioning system free of charge.

I told the caller that he must be mistaken because the car was more than five years old and didn’t qualify for warranty.

His reply that this factory recall was genuinely FOC was a pleasant surprise and a realisation that Peugeot was a car maker who placed a high value on ethics and customer satisfaction.

The car has been performing flawlessly as my daily runner and long-distance transporter since then, maintained by a Peugeot specialist who insists on using the maker’s recommended engine lubricant and coolant.

Car companies won’t go public about recalls unless it is a life-threatening matter such as defective airbags that can be deadly. There is always that minority who will imagine that their car is on a recall even when the chassis and engine numbers are not on the recall list.

My best advice to used car buyers is to buy from someone whom you can trust when he or she says that it’s not a flood-damaged car or a rebuilt wreck.

If that’s not possible, then I’d recommend buying from a car trading platform which has verified the car as an A grade or whatever is the top ranked condition.

Anyway, congratulations to Nanta for his initiative to protect used car buyers and we trust that MARii can also step up to the role of guiding car platforms to standardise a high level of vehicle inspection.

Finally, let’s not forget the Federation of Malaysian Consumers Association which has been pushing for a lemon law since 2007.

As Fomca CEO Saravanan Thambirajah said the law will give consumers more avenues to file complaints. “For now, consumers are not protected if they purchase new or used cars with major defects.” - FMT

The views expressed are those of the writer and do not necessarily reflect those of MMKtT.