Disputes with Car Dealers: What Are My Options?

Last updated on December 19, 2024

Buying a car is a significant milestone for many people, and the process of doing so is largely uneventful. However, misrepresentation and fraud can sometimes occur when an unscrupulous car dealer is determined to make a sale. What then, are the avenues for redress available to an aggrieved buyer in Singapore? This article provides a general overview to some of these options.

Seek Redress from the Motor Industries Disputes Resolution Centre (MIDReC)

First, you may try to seek redress from the Motor Industries Dispute Resolution Centre (MIDReC), which is an an independent and impartial body for resolving disputes between consumers and CaseTrust-Singapore Vehicle Traders Association (SVTA) accredited motoring businesses. Where applicable, we can offer mediation and adjudication services to disputing parties. Going through MIDReC is a relatively cost-effective and hassle-free way of resolving the dispute.

You are eligible to file a claim with MIDReC if:

You are a consumer of a MIDReC member;
Your complaint is lodged less than one (1) year after vehicle handover; and
Your claim does not exceed $50,000.

Stage 1: Submitting Your Dispute

You will first need to inform MIDReC of the dispute by submitting the online Enquiry Form or calling to make an appointment. MIDReC will respond by providing you with a consumer complaint form. You will need to submit the completed form, along with a copy of the agreement/contract bearing the consumer and car dealer names as well as payment of a S$30 registration fee to MIDReC.

Stage 2: Investigation & Mediation

MIDReC will first investigate and resolve the dispute. It will then recommend that both parties attempt mediation if the dispute cannot be resolved. MIDReC will coordinate a suitable day for the Mediation. They will also appoint a Mediator and provides them all documented materials that are related to the dispute.

Prior to the mediation, all parties (including any witnesses) must be briefed on the Mediation Procedure, and sign an Agreement to Mediation. If the Mediation is successful, all parties will be required to sign a Settlement Agreement and given a physical hardcopy of it before leaving.

If the complaint cannot be resolved at Mediation, the car dealer will be informed and told to make a final attempt to resolve the matter, failing which it will be referred for adjudication.

Stage 3: Adjudication

All parties to the dispute (including any witnesses) will be briefed on the Adjudication Procedure, and an Adjudication Confidentiality Agreement must be signed. All parties are also required to sign an Agreement to Adjudication.

MIDReC will appoint the Adjudicator/s and provides them all documented materials that are related to the dispute, prior to the Hearing. You can click here to find out more about what happens during the Adjudication Hearing.

After the Adjudication Hearing, a written Adjudicator Decision will be provided by the MIDReC Adjudicator. If the consumer agrees with the decision, they must sign it to confirm acceptance. All parties will be issued a copy of this written decision.

Submit a Complaint with The Consumers Association of Singapore (CASE)

CASE is a non-profit, non-governmental organisation that handles consumer-to-business disputes. Consumers can submit a complaint with CASE to negotiate with the businesses and work towards an amicable settlement for a small fee.

The complaint resolution is a relatively straightforward process.

Step 1: Submit your complaint

The first step is to submit an online complaint. After submitting an online complaint, CASE officers will assess your situation and advise you on the appropriate next steps during a consultation.

Step 2: Assisted scheme or filed scheme

After the initial consultation, you can choose to be on the assisted case scheme or file a case. Do note that you may be required to pay a small fee with either option.

Assisted Scheme
CASE will help you draft a letter to the car dealer to communicate your grievance and your ideal outcome. You will have to deliver this letter personally to the car dealer in question, and CASE will not follow up on the dispute on your behalf.

File a case
For CASE Members, a Consumer Relations Officer will correspond with the retailer on your behalf to work towards an amicable resolution.

Should the matter reach a stalemate, the officer will advise you on your available options, such as mediation, escalating the case to the Small Claims Tribunals (SCT) or other avenues for legal recourse.

Mediation

Mediation may be the next step in the dispute resolution process if there is a deadlock in resolving the dispute. CASE’s mediation service offers a speedy process for parties to negotiate, compromise and amicably resolve a dispute.

CASE’s mediation service may be a more affordable option compared to litigation and mediation can be arranged within a short period. Each settlement signed is legally binding in court. You can learn more about the mediation process at CASE here.

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Please note that the options set out above are not exhaustive, and we strongly recommended seeking legal advice from a lawyer to explore other possible avenues of recourse that might be available to you. A lawyer would be able to assess the merits of your case and advice you on the best approach to take to get your desired outcome. You can kickstart your search for a lawyer here.