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

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

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

21-08-2023

Latest News

Auto News

Updated Fuel Prices From 07 To 13 August

The Ministry of Finance (MoF) has announced the retail prices of all fuels in Malaysia, for the coming week of 07 to 13 August, 2025, the rates are as such.

06-08-2025
Auto News

BYD Zengzhou Carrier Vessel Made Maiden Voyage to Malaysia

BYD’s own Zengzhou carrier vessel just made its maiden voyage to Malaysia, capable of carrying up to 7,000 vehicles.

06-08-2025
Auto News

JPJ Warns Against ‘Kopi-O’ Licences As Fake Driving School Goes Viral

JPJ warns Malaysians against fake “kopi-o licences” offering driving permits without tests or training.

06-08-2025
Auto News

2025 Proton Saga Details Leaked – New 1.5 4-cyl Engine, No MT, Dual-Screens

Alleged details plus snapshots of new 2025 Proton Saga leaks online, new 1.5 4-cyl engine, no MT option, and dual-screens touted.

06-08-2025
Auto News

KKR: MLFF Will Be Privately Funded Under B2B Model

The MLFF toll system will be delivered through a B2B model, with private firms striking direct deals with highway concessionaires.

Auto News

ETS Segamat–Johor Bahru Extension is On Track, No Delays – MoT

Transport Minister Anthony Loke says the ETS extension project from Segamat to Johor Bahru is on track with no delays.

06-08-2025
Auto News

Report: Malaysia Takes Lead in Southeast Asia’s Auto Market

Malaysia for the first time has surpassed Indonesia in quarterly car sales driven by strong local demand.

Auto News

Zero Tolerance Ahead For Untaxed Luxury Cars - Experts

Road safety experts are urging tougher penalties for luxury car owners who skip road tax and insurance.

06-08-2025