2 Well-Known Car Dealerships In Singapore Allegedly Closed Down Without Prior Notice

UPDATE (23 Nov, 4.51pm): TODAY Online reports that Karz Automobile remains open for business at a different address. It is currently operating at a different address at West Coast Car Mart.

As Karz Automobile has been operating as per usual, the dealership’s manager said Case’s alert has impacted their business. Their lawyer has written in to Case, seeking explanation. Read the full report here.

One may think that buying pre-owned cars from ‘legitimate’ dealers in Singapore is safe.

However, that may not be the case as 2 of these dealers just closed shop without giving customers their vehicles, leaving car buyers in the lurch.


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According to The Straits Times, customers of Universe Motoring, located at Turf Club Roaad, and Karz Automobile, located at West Coast Rd, lost a total of $331,600 when the 2 car dealerships closed down without a reason.

Closed business without giving customers’ cars

Consumers Association of Singapore (Case) said that they have received a total of 5 complaints about the 2 dealerships between Sept and Oct.

In the complaints, customers stated that they had signed contracts with the 2 dealers to purchase pre-owned cars, and that the dealers had agreed to transfer the ownership of the vehicles within a few weeks.


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However, after the customers had made the payments, the 2 dealers failed to transfer ownership of the vehicles to the car buyers.

Since the complaints started, the 2 dealers have closed down without notice and vacated their premises.

As of 22 Nov, Universe Motoring’s Carousell account and Facebook page have been deactivated, while Karz Automobile’s website still appears online.


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$820k lost in 10 months

Between Dec 2018 and Sept 2019, Case received 26 complaints from customers regarding the closure of 7 motorcar dealers.

These customers lost around $821,504 in all because the dealers did not transfer the ownership of vehicles to the customers.

 
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Reminder to consumers

Case has sent out reminders stating that since 26 Nov 2018, vehicle sellers and buyers had to use their SingPass to apply for and confirm the transfer of a vehicle’s ownership on OneMotoring.com.sg.

Upon sending the application for the transfer, the buyer should receive an SMS from LTA to accept the transfer of ownership.


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For the transfer to be complete, the vehicle should not be under financing or have any outstanding matters such as unpaid summonses with the LTA.

We hope the car buyers will sucessfully seek redress through the right channels.

Featured image adapted from SgCarMart.