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Used Car Dealers Appeal For End To Excessive Bureaucracies

Anis

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Photo credit: The Star

The government has been urged to simplify the process of obtaining a licence to operate for used car dealers.

Datuk Tony Khor, president of the Federation of Motor and Credit Companies Associations of Malaysia (FMCCAM), has urged the Home Ministry to simplify procedures under the Second-Hand Dealers Act 1946 (Revised 1977).

He emphasised that the current procedure requires many used car dealers to obtain approval and support from six government agencies, including local authorities.

"Used car dealers frequently have to wait a long time to obtain this approval or support, which affects the timeline when issuing licences to dealers," Khor explained. image.png


He emphasised that used car dealers do not deal with waste or scrap metal and instead sell cars from an open space.

"However, local governments have classified used cars as waste or scrap metal," he said at the 45th annual general meeting of FMCCAM in Penang.

He stated that FMCCAM hoped that the police would be able to eliminate or eliminate the procedures that required support from local governments and other departments, allowing used car dealers to apply for licences directly from them.

Khor also proposed that the eAuto system be linked directly to the police, eliminating the need for physical applications.

"Currently, there are approximately 5,000 car dealerships in the country that buy and sell used cars."

"However, less than 2,200 dealerships have successfully registered with the police, accounting for less than half of the total."

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"This is because used cars are classified as waste or scrap metal."

"With many of our shops located along main roads, obtaining approval from a local council's town planners is nearly impossible," he explained.

Khor claimed that the law, which was intended to assist police in tracking down stolen goods, had a negative impact on their business.

"Every used car has an engine and chassis number."

"A licence is required to open a used car dealership."

"Once a licence is issued, each dealer must record every sale in a book that the police can inspect when necessary."

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"We urge the Home Ministry to simplify the process because the dealers are already linked through the eAuto system, where every sale is recorded."

"This system should be integrated with the relevant authorities, providing sufficient protection against stolen goods and unscrupulous dealers," he stated.

Khor also hoped that consumers would be more willing to buy used vehicles rather than new ones, as their average sales had not increased in years.

"Used car sales have remained at an average of 400,000 annually (as of 2022), while new car sales reached approximately 720,000 in the same year," he said.






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Written By

Anis

Previously in banking and e commerce before she realized nothing makes her happier than a revving engine and gleaming tyres........

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JPJ Running Numbers

KUALA LUMPUR

VPS7694

SELANGOR

BSH8761

JOHOR

JYG9478

PULAU PINANG

PRU2037

PERAK

APB3091

PAHANG

CFD5173

KEDAH

KGC3430

NEGERI SEMBILAN

NEH1576

KOTA KINABALU

SJM6634

KUCHING

QAB1877M

Last updated 23 Sep, 2025

Fuel Price

Petrol

RON 95

RM 2.05

RON 97

RM 3.21

+0.03

RON 100

RM 5.00

VPR

RM 6.23

Diesel

EURO 5 B10

RM 2.93

+0.03

EURO 5 B7

RM 3.13

+0.03

Last updated 18 Sep, 2025

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