The Consumers’ Foundation said yesterday that large discrepancies exist among sellers of used cars, ranging from the types of vehicle safety tests conducted to misleading advertisements on warranties, calling for the enforcement of standard contracts to better regulate the market.
The consumer rights watchdog said that three out of every four cars sold in the country is a used car, but because pricing and product information is not transparent, many consumer disputes arise when used cars are purchased.
Last month, the foundation conducted a survey of six used car dealerships and asked them questions about safety testing and certification and found that large differences exist between sellers, and that it was difficult for consumers to make informed decisions when it came to buying second-hand cars.
For example, certain dealers check 11 items when performing safety tests on the engine system, while others performed up to 26 tests, said Hwang Yu-sheng (黃鈺生), secretary general of the foundation.
Road tests on vehicles could also range from checking only five items to as many as 15, he said.
Other tests and certification systems on transmission and directional control mechanisms also showed wide variations between dealers.
Different dealerships also vary widely on their policies for providing warranties, making it difficult for consumers to shop around and make comparisons among dealers to get the best deal, he said.
The foundation said that although the Consumer Protection Commission has introduced a standard contract for buyers and sellers of used cars, the standard contract is not mandatory and therefore has not had much effect.
The standard contract includes important terms and conditions that are sometimes neglected, such as clauses on a three-day review period of the contract and the amount of mileage accumulated on the vehicle.
The foundation called on the Ministry of Economic Affairs, the government agency that supervises sellers of used motor vehicles, to make the terms and conditions included in the standard contract mandatory, so as to provide better protection for inexperienced consumers of used vehicles.
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