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Tuesday, June 07, 2011

Used car dealers protest against new inspection requirement

Used car dealers protest against new inspection requirement


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

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

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

He said Puspakom's current four-point inspection (B5) - on the chassis number, 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 will be based on visual checks which are unreliable," he told reporters during a protest by the Kuala Lumpur and Selangor Car Dealers and Credit Companies Association here Tuesday.

Khoo said the new rule would only benefit Puspakom as customers would have to pay an additional RM90 for the B7 inspection on top of the original RM30 for B5.

Another issue of contention was the 1% maximum booking fee mandated by the amendments, which requires used car dealers to refund customers 90% of the booking fee if the deal fell 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.

1 comment:

  1. How's the issue between the car dealers and the gov't officials involved? They should instead hold a dialogue between both sides in order to express the views of both parties and find a way to resolve the problem.