SG: Another used car dealer involved in fraud
Another used car dealer is under investigation for suspected fraud. The dealership, KS Automobile, has accepted payments from clients but not delivered the vehicles. The Upper Serangoon Road based dealership is alleged to have used the same method of operation as Galaxy Carz. These dealers work by putting adverts of used vehicles online, and when a buyer responds to it, he/she would pay in part or in full for the car. If the vehicle is then delivered, they would find out that the car is not under their name, but still under the previous owner’s name. The car would eventually be repossessed.
Of course, the fraud cases affect both parties. The former owner of the car usually expects the dealer to pay the remaining portion of the loan to the bank. However, the dealer did not.
The Consumers Association of Singapore (Case) said that 17 complaints have been filed against KS Automobile since January.
One such buyer. Huang Haowei, paid close to $23,000 in February for a used Mitsubishi Lancer, only to discover the car is not under his name. He has had to return the car to the previous owner, and is one of five people who have filed a police report against the car dealer.
The only registered owner of KS Automobile Mr Chong Zhuang Jian, could not be contacted.
To prevent a repeat of such an occurance, the LTA encourages motorists to use the service of CaseTrust-SVTA accredited motor vehicle dealers for great assurance, as the car is covered by insurance of up to $50,000.
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