Used car dealers cry foul over ruling

All about buying car, new car, second hand car and used car... the car loan, servicing the loan, hire purchase... car repossession, car repossessor and getting back repossessed car...

Used car dealers cry foul over ruling

Postby admin » Tue May 17, 2011 10:50 am

USED car dealers are crying foul over the Hire-Purchase (Amendment 2010) Act 1967 approved by parliament recently, fearing the value of vehicles will drop.

From June 1, all used vehicles going on sale will have to undergo an extensive B7 inspection in Puspakom comprising 18 visual and four computerised checks before it is certified roadworthy and proceed to transfer of ownership.

Now, only four checks are done on the chassis number, engine number, windows and windscreens, and cut-and-join parts.

Federal Territory Gerakan Youth chief Lau Hoi Keong said many complaints were received regarding the ruling as unfair to certain parties.

He said extensive research including consultation with industry players should be done before implementing such a policy.

“We hope the implementation will be delayed to gather feedback from the public.

“We appreciate the government’s effort in wanting to open more car inspection companies to create competition for better quality.

“However, the used car dealers are doubting the professionalism of Puspakom officers in assessing the condition of vehicles now,” he said.

Lum Ah Kong, a used car dealer for more than 30 years, said the officers’ assessment were inconsistent.

“Three years ago, I bought a van after it passed the Puspakom inspection. I found a buyer three months later and sent it for an inspection again at a different branch but the van was found to have cut-and-joined parts and failed the test.

“I was caught in a dilemma over how to sell the van.

“Two days later, I sent it for an inspection again to the branch I sent the first time and fortunately it passed. So, where is the standard?” he asked.

Another used car dealer Dave Lim expressed the same view, adding that some parts of the vehicles, although old, were still safe to be used.

“Eighteen of the 22 checks are inspected visually, which means it is up to the officers to make the judgment.

“Previously, an owner just needs to let me test his vehicle to assess the condition and value it accordingly and everything will be over within minutes,” he said, adding that inspection at Puspakom takes half a day.

He is also against the ruling that booking fees for used vehicles be set at 10% of the total price with 90% of it returnable if the buyer decides to cancel the purchase.

“Used car dealers have the holding cost. The price of used vehicles is not stable and goes down quite rapidly. The government should take this aspects into consideration, too.

“Based on my experience, out of 10 new cars sold, seven involves a trade-in vehicle.

“Most people expect to get some money by trading in their vehicles to offset the downpayment for new car.

“People will be reluctant to sell their vehicles if it will cost money for repairs,” he said.

Muzafar Ali, who wanted to trade-in his car on Wednesday, was rejected by a used car dealer and instead told to go for the B7 inspection first.

“The dealer said he will only accept my car if it passes the inspection. This is a burden to me as it is a long process and if any fault was found, I will have to repair it before it gets the green light. It will cost me money and reduce the value of my car,” he said.

Lau said another concern was pertaining to modification which was not stated clearly in the Act.

“Many vehicles sold are premodified by the manufacturers, which raises the question of whether this will be scrutinised by Puspakom, too,” he said.

Read the full article:
http://thestar.com.my/metro/story.asp?f ... ec=central
admin
Informer
 
Posts: 3811
Joined: Thu Jan 01, 1970 12:00 am
Location: Kuala Lumpur

Amended Act likely to affect used car sales

Postby admin » Tue May 17, 2011 10:55 am

Association calls for more discussions before its implementation

GEORGE TOWN: The sales of used cars in the country are likely to be affected this year due to the implementation of the amended Hire Purchase Act (HPA) 1967 from next month.

Federation of Motor and Credit Companies Association of Malaysia (FMCCAM) president Datuk Tony Khor said the amended HPA which required the used car dealer to refund 90% of the 1% deposit should the buyer decide not to buy the second hand car.

“The implementation of the amended HPA would create a situation that is not fair to both the customer and the used car dealer and it would slow down the transactions of used cars.

“Imagine these two scenarios. The used car dealer spends two weeks to a month to process the loan documents, reserve the vehicle for the customer and miss opportunities to sell it for a better price and he has to refund a substantial portion of the deposit if the customer changed his mind about buying the vehicle.

“This is not fair to the used car dealer who has wasted his time preparing the necessary sale and loan documents and missed better business opportunities.

“It is also not fair to the customer. If the customer can change his mind about buying the used car, then similarly the used car dealer can break his promise to reserve the vehicle for the customer and sell it at a higher price and he only needs to refund 90% of the deposit.

”The implementation will create a confusing and impractical situation as there is no longer any commitment from either the customer or the used car dealer and this will slow down used car transactions in the country.

”The act will not have a significant impact on the purchase of new cars,” Khor added.

Khor urged the Government to delay the implementation of the amended HPA to allow for more discussions to be held.

He also urged the Government to make the double inspections by Puspakom for used cars before they were transferred to a new ownership into a single inspection.

”This will save cost and time for buyers,” he added.

The used car industry was impacted by the removal of the voluntary scrap scheme in late 2009, which allowed car owners to turn in vehicles of more than 10 years for a RM5,000 discount to buy a new Proton or Perodua, Khor said.

“Last year, the used car industry did not achieve the targeted sales of 600,000 units as the voluntary scrap scheme was removed in late 2009.

“The sales of used cars for 2010 were about 480,000. We hope to maintain more or less the same figure this year, which could, however, be affected due to the implementation of the amended HPA.

”The voluntary scrap scheme should be revived and provide participants of the programme with a wider choice of completely-knocked-down cars to buy.

”This would increase the demand for more locally made automotive parts, hence creating more jobs.

Read the full article:
http://biz.thestar.com.my/news/story.as ... c=business
admin
Informer
 
Posts: 3811
Joined: Thu Jan 01, 1970 12:00 am
Location: Kuala Lumpur

Used-car dealers protest against unnecessary 18-point inspec

Postby admin » Wed Jun 08, 2011 2:54 am

KUALA LUMPUR: Frustrated used-car dealers are protesting against the “unnecessary” 18-point inspection requirement included in amendments to the Hire-Purchase Act 1967.

Effective June 15, all used vehicles for sale will undergo Puspakom's 18-point inspection (B7) to ensure their roadworthiness.

Federation of Motor and Credit Companies Associations of Malaysia (FMCCAM) secretary-general Khoo Kah Jin said the B7 would result in unnecessary costs for consumers.

He said Puspakom's current four-point inspection (B5) - on the chassis number, the engine number, windows and windscreens as well as cut-and-join parts - was sufficient.

“The B7 inspection is unnecessary as the additional 14-point inspection is based on visual checks which can be subjective,” he told reporters during a peaceful protest by about 100 members of the Kuala Lumpur and Selangor Car Dealers and Credit Companies Association yesterday.

The dealers also expressed worry that their business would be affected as the B7 inspection was expected to take a whole day.

Another issue of contention was the 1% maximum booking fee mandated by the amended Act, which requires used-car dealers to refund customers 90% of the booking fee if the deal falls through.

“If we collect RM100 for a RM10,000 car, we will only get to keep RM10 if the customer pulls out at the last minute. This is very unfair,” he said.

Khoo also revealed that Puspakom had inked a deal with Motordata Research Consortium Malaysia (MRC) to provide it with information of vehicles accident history.

He said inside sources had informed him that Puspakom would pay a RM25 fee to MRC for each vehicle it checked.

“Why must Puspakom link up with a public-listed company and charge the public for it? MRC should directly link up with JPJ (Road Transport Department).

“I believe that will be cheaper, rather than having a secret agreement with MRC, the cost of which will be transferred to consumers,” he said.

Read the full article:
http://thestar.com.my/news/story.asp?fi ... sec=nation
admin
Informer
 
Posts: 3811
Joined: Thu Jan 01, 1970 12:00 am
Location: Kuala Lumpur

Firms that can emulate Puspakom are welcomed

Postby admin » Wed Jun 08, 2011 2:55 am

PETALING JAYA: Any company that can set up a workshop to conduct the 18-point inspection for those selling used-cars is welcome to do so, said Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Ismail Sabri Yaakob.

He said he strongly encouraged the Federation of Motor and Credit Com­panies Associations of Malaysia to recommend any company it felt was capable of doing Puspakom’s job.

“Since Puspakom has all the facilities, we said yes. But if there is competition, I will support the competition,” he said, stressing that exclusive inspection rights were not given to Puspakom.

Ismail Sabri also said there would be no postponement to the June 15 deadline for the enforcement of the amended Hire Purchase Act despite the used-car dealers’ unhappiness.

“Consumer safety is our focus. We have to check whether all safety requirements are met and if the car parts are functioning properly,” he said.

Puspakom chief executive officer Hisham Othman said its vehicle examiners all possessed the Certificate in Vehicle Inspection.

Read the full article:
http://thestar.com.my/news/story.asp?fi ... sec=nation
admin
Informer
 
Posts: 3811
Joined: Thu Jan 01, 1970 12:00 am
Location: Kuala Lumpur

Amended HP Act sees RM90 fee for used car sellers

Postby admin » Thu Jun 09, 2011 2:00 pm

Amended HP Act sees RM90 fee for used car sellers, new rules for repossession

PUTRAJAYA: Used vehicle sellers will have to pay a RM90 inspection fee to Puspakom before the sale can be made, in line with the implementation of Hire Purchase Act (Amendment 2010) on June 15.

Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Ismail Sabri Yaakob said used motorcycles were exempted from inspection due to the small number and amount involved.

He said the complusory inspection was to protect buyers of used vehicles and not meant to incovenience sellers or buyers of used vehicles.

Previously, Puspakom inspection was needed for transfer of ownership to ensure that the vehicles were not stolen.

"If previously, checks were on four items, we have added another 14 items to ensure safety. Puspakom will issue a certificate that can be used for ownership transfer and hire purchase agreement with banks."

He said the issue of car dealers returning 90% of booking fees should deals fall through did not arise as it was not stated in the law.

However, sellers may request a 10% deposit from buyers as required under the Hire Purchase Act.

The Government has also set new conditions for vehicle repossessors to protect the interest of consumers. Only those registered and given permits by the ministry will be appointed vehicle repossessors.

Ismail said permit applicants will have to undergo screening to check for criminal record.

"They also must adhere to procedures whereby repossession can only be done from 9am to 9pm daily. No force must be used in the process.

"If the vehicle is in the garage, they can't enter the house compound except with a court order and can be reported to police for flouting it,"

He said this was in line with Hire Purchase Act 1967 (Amended 2010) and Hire Purchase Rules (Permit Acquisition and Repossession Procedures) 2011.

Read the full article:
http://thestar.com.my/news/story.asp?fi ... sec=nation
admin
Informer
 
Posts: 3811
Joined: Thu Jan 01, 1970 12:00 am
Location: Kuala Lumpur


Return to Buy new car, second hand car, vehicle loan & vehicle repossession etc

Who is online

Users browsing this forum: No registered users and 1 guest

  • Lazada Malaysia Lazada Malaysia Lazada Malaysia Lazada Malaysia