Monday, June 6, 2011

Used-car dealers against extra checks

About 100 used-car dealers held a demonstration in Kuala Lumpur today, to protest an amendment to the Hire Purchase Act 1967.

From June 15, all used cars will have to be put through an additional 14-point inspection before being transferred to the new buyer.

The dealers claimed that this will only benefit Puspakom, the private concessionaire that has monopoly of computerised vehicle inspection services.

The 14-point inspection, dubbed B7, will be effective on top of the current compulsory 4-point inspection called B5.

Khoo Kah Jin, secretary-general of the Federation of Motor and Credit Companies Associations of Malaysia (FMCCAM) said the B5 inspection is sufficient to protect buyers.

“The new rule does not serve any purpose. The consumers (will be paying) for Puspakom to benefit," he claimed.

Khoo also said extra costs will be incurred by both sellers and dealers as B7 inspection will cost RM90, on top of the RM30 levied for B5 inspection.

The FMCCAM has more than 3,000 members nationwide.
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