Used Car Dealers Appeal For End To Excessive Bureaucracies

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.

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."

"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."

"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.