THE motor industry, which accounts for the second highest number of consumer complaints here, has launched a scheme to lead car buyers to trustworthy dealers and away from the 'black sheep'.

From July, buyers can zoom in on 39 firms in the so-called CaseTrust scheme started by the Consumers Association of Singapore (Case) and the Singapore Vehicle Traders Association (SVTA).

The cohort represents about 5 per cent of all authorised distributors, parallel importers and used car traders here.

The 39 were among 66 which applied to be accredited but did not meet the requirements. These include having in place a transparent and fair buyer's agreement and an insurance bond of $50,000 which will be used to settle any customer disputes that might arise.

But Case president Yeo Guat Kwang said the scheme is not bent on dispute settlement, but is one that is 'dispute-avoidance'.

But should disputes arise, the CaseTrust programme has a mediation process in place. It will be chaired by five members, including Mr Dennis Lim, a former magistrate.

SVTA president Neo Nam Heng hopes all motor traders will strive to join the CaseTrust scheme.

The first 39 firms, largely parallel importers, are: