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