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
ECRL Project Hits 87% Completion by August 2025 – MoT

ECRL Project Hits 87% Completion by August 2025 – MoT

The ECRL project has recorded 87% overall completion as of August 2025, said Transport Minister Anthony Loke.

23-09-2025
Auto News
Amir Hamzah: No Back-to-Back Pumping of RM1.99 RON95 A Day

Amir Hamzah: No Back-to-Back Pumping of RM1.99 RON95 A Day

Amir Hamzah: Govt. won't allow multiple subsidised refuels in a day as BUDI95 takes effect Sept 30.

Auto News
Petron Lubricants Gains SIRIM Certification & Label

Petron Lubricants Gains SIRIM Certification & Label

Petron Malaysia acquires SIRIM genuine product licence certification and label for engine lubricant product line-up.

23-09-2025
Auto News
Govt Will Allow Commercial RV Rentals from 2026 - Loke

Govt Will Allow Commercial RV Rentals from 2026 - Loke

Starting January 2026, RVs can be licensed for commercial use, making self-drive RV holidays safer and regulated.

23-09-2025
Auto News
BUDI95: RON95 Ban on Foreign Cars Still On, RM1.99 for Malaysians

BUDI95: RON95 Ban on Foreign Cars Still On, RM1.99 for Malaysians

BUDI95 keeps foreign-registered cars out of subsidised RON95, only Malaysians with local vehicles can pump at RM1.99 per litre.

Auto News
Rapid Rail Set To Launch Real-Time Crowd Tracking & AI Security

Rapid Rail Set To Launch Real-Time Crowd Tracking & AI Security

Rapid Rail will introduce a live tracker showing coach crowd levels so commuters can board with less stress.

23-09-2025
Auto News
Rafizi: Budi95 Quota Won’t Deliver Savings or Fairness; T20 Gains the Most

Rafizi: Budi95 Quota Won’t Deliver Savings or Fairness; T20 Gains the Most

Rafizi Ramli says Budi95 quota will keep subsidies at RM10–15 billion a year, but wealthier households enjoy biggest share.

Auto News
Budi95: JPJ Extends Operating Hours; JPN to Issue Free MyKad Replacement

Budi95: JPJ Extends Operating Hours; JPN to Issue Free MyKad Replacement

More than 16 million Malaysians stand to benefit from Budi95, but only with both their MyKad and valid driving licence.