KUANTAN: From next year, used car dealers will be required to apply for interim ownership of the vehicles they buy.
Ownership transfers must be made within a week or the errant second-hand car companies could be fined up to RM2,000 for each car.
Road Transport Department director-general Datuk Solah Mat Hassan said the regulation, which has the support of the Malaysian Used Car Dealers' Association, was being finalised.
He said the interim ownership was important as it would absolve car owners of any responsibility after selling their vehicles.
Solah said many car owners had complained of getting traffic and parking summonses even after selling their vehicles to used car companies, and being sued when the vehicles were involved in an accident or used for criminal purposes.
Solah said dealers were reluctant to take ownership of these cars as they had to pay RM100 for each of them and bear the cost of Puspakom's inspection.
"We will ensure the ownership transfer cost is lower than the present rate and the interim ownership will not require Puspakom's approval," he said after a dialogue with car dealers and financial institutions from the east coast in Cherating, near here, yesterday.
Solah said RTD would also spend RM400 million to upgrade its information technology system as the present facility had reached 90 per cent of its capacity.
With the IT upgrade, online registration or "e-registration" for new vehicles could be implemented nationwide from January.
"It will cover the peninsula in July and total implementation in Sabah and Sarawak is scheduled for January."
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