Link Copiedcheck_circle
Auto News

Used Car Dealers Appeal For End To Excessive Bureaucracies

Anis

Share via

image.png

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."

image.png

"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."

image.png


"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.






Gallery

Tagged:

used car dealers Malaysia
used cars Malaysia
Share This Article

Written By

Anis

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

Share via

Related News

Auto News
Odometer Tampering Still Rife In Local Used Car Market

Odometer Tampering Still Rife In Local Used Car Market

Up to 70% of used cars in Malaysia may have rolled-back mileage to appear newer and fetch higher prices.

12-08-2025
Auto News
Used Car Prices Dropping As Car Prices Expected To Rise Next Year

Used Car Prices Dropping As Car Prices Expected To Rise Next Year

Used car dealers cutting prices by up to 15% as car prices expected to increase next year.

07-11-2023
Auto News
Sales Of Used Cars Expected To Moderate

Sales Of Used Cars Expected To Moderate

Used car sales are expected to slow for the rest of the year.

21-08-2023

Latest News

Auto News
LRT3 Shah Alam Line Expected To Open In June

LRT3 Shah Alam Line Expected To Open In June

After years of delays, the LRT3 Shah Alam Line could finally begin operations in June, pending final safety tests.

05-02-2026
Auto News
First Johor Bahru–Singapore RTS Train Hits Woodlands

First Johor Bahru–Singapore RTS Train Hits Woodlands

The first Johor Bahru–Singapore RTS Link train has arrived in Singapore on Wednesday, as confirmed by LTA.

05-02-2026
Auto News
MTSB Bill in the Works to Streamline Transport Safety

MTSB Bill in the Works to Streamline Transport Safety

The MTSB Bill is being drafted to integrate agencies like MIROS and AAIB, ensuring efficient transport safety management.

Auto News
MITI Tightens EV Import Rules to Protect Local Ecosystem

MITI Tightens EV Import Rules to Protect Local Ecosystem

MITI’s tougher stance on EV imports aims to safeguard the local automotive ecosystem.

Auto News
Updated Fuel Prices From 5 To 11 February

Updated Fuel Prices From 5 To 11 February

The Ministry of Finance (MoF) has announced the retail prices of all fuels in Malaysia, for the coming week of 5 to 11 February, 2026, the rates are as such.

04-02-2026
Auto News
JPJ Steps Up Checks On Second Drivers Ahead Of Chinese New Year

JPJ Steps Up Checks On Second Drivers Ahead Of Chinese New Year

JPJ steps up checks to ensure express buses have second drivers, aiming to reduce fatigue and enhance passenger safety during CNY.

04-02-2026
Auto News
Jetour Rolls Out New Stylised ‘JT’ Logo In Malaysia

Jetour Rolls Out New Stylised ‘JT’ Logo In Malaysia

Chinese marque Jetour rolls out new logo in Malaysia featuring stylised ‘JT’ lettering.

04-02-2026
Auto News
M’sian Calls Out BMWs Blocking EV Chargers, Slams Mentality

M’sian Calls Out BMWs Blocking EV Chargers, Slams Mentality

Non-electric BMWs parked in EV charging bays spark frustration and highlight mindset issues among Malaysian drivers.

04-02-2026