BUYING AND SELLING A SECOND HAND MOTOR VEHICLE (PART 1)

prominent place on the vehicle a list showing for the information of the public, at least the following:

ˆPrice (VIP)

Any other fees and charges payable separately by the consumer (e.g. Registration Fees, Insurance, Third Party etc) Year of Manufacture; Make and Model; True Mileage;

Warranty period/ kilometers covered; Chassis number; Engine number; and Defects, if any.

Consumer Responsibilities before buying a second hand motor vehicle?

Check that the dealer he/she is going to deal with is properly licensed to act as such (A customer can get this information from LTA);

Needs to discuss with the trader the following in regards to the motor vehicle he/she is planning to buy: i. Age of the vehicle; ii. History of the vehicle (the previous owner or use, accident record (if any), how it was acquired, existing defects –etc);

iii. True mileage (Verified by sighting documentations e.g. Deregistration or Export Certificate);

iv. Intended usage of the vehicle (in light of the consumers intended use); v. Make/Model (consult an expert in such issues); vi. Safety features; and vii. Motor vehicle specifications (verify with LTA through their record of export certificate, if the need arises);

Check for the vehicle’s previous registration with LTA;

Check on the availability of spare parts and after sales services;

Test drive the vehicle to gauge performance;

Obtain a second opinion on the vehicle if need be (e.g. from LTA Etc)

Enquire on all costs payable including all applicable fees and charges.

Trader’s responsibilities is selling or offering for sale a second hand motor vehicle?

• Disclose all relevant information about the vehicle that includes but not limited to the following: i. Age of the vehicle; ii. History of the vehicle (the previous owner or use, accident record (if any), how it was acquired, existing defects –etc);

iii. True mileage (as in export certificate); iv. Suitability of use; v. Make/Model; vi. Safety features; vii. Motor vehicle specifications;

viii. Availability of spare parts and after sales services including centers/locations where they are provided; ix. Terms and conditions of sale;

x. All payable costs to be borne by the consumer including any consideration of tax or legal charges. xi. Adopted mode of payment or options thereof.

Provide a copy of the export certificate to the buyerthis certificate includes critical information such as year, make, model, mileage etc.

Prepare a check list of all disclosures made during negotiations with consumer and get it properly endorsed with copies made available to each party;

Prepare a written contract(Terms and Conditions of Trade) that adequately captures all issues agreed to by both parties on the terms and conditions of sale;

Issue proper quotations for financing purposes- this should include the true vehicle identification in terms of year, ,make, model, engine capacity, colour etc;

Receive payment of deposit (if needed under the terms and conditions of trade) and issue proper tax invoices and receipts;

Get all transfer documents including warranties in order for the handover process;

Is a Second Hand Motor Vehicle Dealer Required to Give Warranty?

Under Section 31 of the Land Transport (Vehicle Registration and Construction) Regulations 2000, the operator of a vehicle dealing business MUST PROVIDE on all vehicles sold, including by auction or tender a mechanical warranty of not less than 3 months or 6,000 kilometers, whichever occurs first, complying with the appropriate code of practice. Motor vehicles not covered under the mechanical warranty are:

Vehicle sold to or bought by a holder of a vehicle dealing certificate;

Motor Vehicles which are no more than 10 years old before being sold to its first registered owner;

Motor Vehicle which were sold for less than $8,000.00; and

Motor Vehicles disposed, dismantled for scrap or advised as cease to exist. What does a Mechanical Warranty Cover?

Mechanical components including: Engine; Transmission or Gear

Box;

Differential or the final

drive; Transaxle; 4*4 front differential unit and hub/differential carrier; Propeller shaft Braking System ; Steering; Fuel System ; Cooling System ; Full details of each of these components will be provided in Next Week’s article.

Warranty should be in Writing

Conditions of warranties in the consumer transaction must include in writing the following:

Details of what is covered and what is not covered;

Conditions that need to be followed for the warranty to remain valid;

The geographical scope of the warranty;

Warranty period/ kilometers.

A consumer must be advised about the type of warranty being provided, for example, manufacturers, free extended manufacturers/trader’s, insurance backed or trader’s own warranty.

A consumer must be informed of the identity of the warranty provider and the address to which claims may be directed.

A trader should also give advice to consumers about who they should address their claim to if they have a problem regarding defective parts and accessories not covered under the warranty.

A trader should ensure that warranty work is carried out promptly.

A trader must disclose to the customer the nature of work to be carried out and expected time of completion before any work commences.

What should the parties do during the handover process?

The trader should hand over a signed copy of the documents, stamped copy of transfer documents and all relevant keys and operating gadgets of the vehicle to the consumer and require him/ her to sign off their dispatch book;

The consumer should acknowledge receipt of all the above and remove the vehicle from the trading premises immediately or as agreed otherwise.