Some local car dealerships have come under fire for corruption and fraud following emergence of allegations of misrepresenting the true condition of the pre-owned vehicles they sell thereby misleading and deceiving unsuspecting customers.
The dealers are being accused of tampering with the odometer, an instrument used to measure the distance a wheeled vehicle has travelled, making cars appear less used than they actually are.
One victim is Maseru-based businessman, Thabiso Majara.
Majara had been looking for a reliable used car to support his growing business needs.
After some research, Majara found a second-hand Volkswagen at a local dealership in Maseru, advertised as a great deal.
He said the vehicle was listed with “low mileage”, only 120,000km, which he considered a good deal given the asking price.
Majara explained that the dealer provided all the standard paperwork, and assured him that the vehicle had been well-maintained.
He said the dealer claimed the mileage had been checked and was accurate and therefore did not inspect the vehicle deeply or ask for a full history report.
Majara was satisfied with the condition of the car and after a brief inspection, he decided to go ahead with the purchase; this was in June this year.
“After a few months of driving the vehicle, I started to notice some concerning issues.
“The vehicle began requiring frequent repairs and recently, the transmission started acting up, followed by issues with the engine and suspension,” he noted.
He took the car to a mechanic who was able to determine that the wear and tear on the vehicle was inconsistent with the claimed mileage.
“I am planning to confront the dealership,” he told this publication this week.
According to two reliable sources employed by import dealerships, tampering with the odometer is a common practice.
One of the sources said for instance, a vehicle that has been driven for 150,00km could be adjusted to display only 30,000km, thus convincing potential buyers that it is relatively new or less worn out.
“This practice significantly inflates the resale value of the vehicle, which benefits the dealership at the expense of the consumer,” the source said.
theReporter learnt that the tampering of the odometer is mostly done by second graders, a term used for dealers who refurbish and resell wholesale vehicles.
It also learnt that during the refurbishment process, the vehicles’ odometers are often tampered with by resetting them, allowing dealers to significantly lower the displayed mileage and making the cars appear less used than they actually are. This enables the dealers to market the cars as low-mileage vehicles, which are typically less expensive than those with higher mileage.
Another source said some of the vehicles, despite having high mileage, are of excellent quality and can still be a good purchase for customers.
“However, corrupt dealers exploit this by lowering the mileage on vehicles imported from countries like Japan or Singapore before they are sold to unsuspecting buyers,” the source said.
“There are dealers whose audit trailers are so strict that they are unable to tamper with the odometer. It records everything, from where the car was manufactured until a client buys it.
“After a vehicle is bought and before it is transported, it goes through a test drive, and this way its mileage goes up a little bit.”
This publication this week visited Munshi Autopart, a dealership at Machache in Maseru and its owner, Mohammed Sammer Munshi, repudiated claims of odometer tampering as untrue.
Munshi said the rumours are baseless and unproven, adding he has heard about them but cannot pinpoint perpetrators.
“The speculation is always there, but it does not make sense because here in Lesotho no one is able to do that.”
Munshi suggested that complaints about high mileage might lead to misconceptions, as customers do not want to buy cars with high mileage, even though such vehicles may still be in good condition.
The Import Car Dealers Association of Lesotho was not available for comment this week, as its founder – who refused to give out his name – said he was out of the country.
A local broker and customs agent, Bokang Seupi said if a car has a ‘ridiculously’ low mileage it is because it may have been involved in an accident and was revamped.
Seupi indicated that although tampering with odometers is illegal, many customers remain unaware of the extent of the fraud.
“Interestingly, some high-mileage vehicles are still of excellent quality and could be a good purchase,” he said.
An auto mechanic who spoke anonymously concurred that tampering is a criminal act but perpetrators get away with it because nobody can see them.
He said there are plenty of dealers who do it in Maseru, and it takes an expert eye to do a pre-inspection before a vehicle is bought.
“The dealers reset or roll back the mileage that is displayed on the dashboard; this is usually done digitally.
“However, several tools can do it mechanically as well. Whether digital or mechanical, odometers play a crucial role in our cars’ proper functioning,” he pointed out.
The mechanic said businesses usually change information to cheat and sell vehicles at higher prices. This is not only unethical but can also cause many legal complications.
“Consumers must remain vigilant, perform thorough inspections, and be wary of unusually low-mileage vehicles.
“Until stricter regulations are enforced, the problem of odometer tampering is likely to persist,” he stated.
The executive director of the Consumer Protection Association, Nkareng Letsie, said it is crucial to detect the stage at which the tampering happens – at dealerships or at manufacturing phase.
“Another issue with buying a second-hand car is that it is sold as is, and therefore one loses warranties and guarantees.
“However, tampering with odometer and doctoring the mileage amounts to extortion. It is a wrong practice, regardless of how you look at it. The law on imported cars is silent.
“I advise consumers who want to buy second hand cars to get an expert to inspect first before buying,” Letsie added.
