Fomca defends new rule for used cars
Susan LoonePublished: Jun 8, 2011 2:19 PM | Updated: Jun 8, 2011 4:09 PM
The Federation of Malaysian Consumers Associations (Fomca) has defended the amendment to the Hire Purchase Act 1967 which requires all used cars to be put through a 14-point inspection.
The Federation of Malaysian Consumers Associations (Fomca) has defended the amendment to the Hire Purchase Act 1967 which requires all used cars to be put through a 14-point inspection.
The new rule, effective June 15, will be mandatory for all used cars before these are transferred to new buyers.
Fomca vice-president K Koris Atan (left) said the amendment by the Domestic Trade, Cooperatives and Consumerism Ministry will benefit consumers and ensure their right to information, protection and safety when purchasing used cars.
Car dealers who oppose the amendment, Koris said, may have a "hidden agenda" to do away with problematic cars by calling for enforcement to be postponed.
“There is an element of dishonesty in their request,” he told a press conference in Penang today.
“At the end of the day, who will suffer? Only the consumers,” he added, saying that no one should stop the new rule from being properly implemented.
Koris stressed that the new regulation, approved only after 44 years of pressure from consumer rights groups, will apply to the two million used cars which are currently registered with the Motor Data Research Consortium.
It is learnt that the ministry had allowed Puspakom to ink an agreement with the MDRC, another private company, which collects vehicles’ accident history.
But Koris welcomed the consortium, urging all those who felt cheated after buying a faulty used car to now come forward and publicise their case, saying that “some car dealers have got away with this”.
“The public should know so that consumers can boycott dealers who fail to comply with regulations... consumers must know their rights and the power they have,” he added.
He was referring to the 100 used car dealers, represented by the Federation of Motor and Credit Companies Associations of Malaysia , who held a peaceful rally in Kuala Lumpur yesterday, to protest the new development, saying it will only benefit Puspakom.
The private concessionaire has a monopoly of computerised vehicle inspection services.
FMCCAM, with 3,000 members, expressed suspicion of a conspiracy within the ministry “to benefit certain quarters and burden the people”.
The 14-point inspection, dubbed B7, will be effective on top of the current compulsory four-point inspection called B5.
The B5 inspection determines if the car was stolen, if the engine has been tampered with, whether there’s any ‘cut and join’ on the body, and on the condition of the windscreen.
‘Look at the bigger picture’
Koris said consumer rights groups have been fighting for these elements for years and complimented the ministry for finally taking the initiative to endorse the law.
On the extra costs incurred by both sellers and dealers as B7 inspection will cost RM90, on top of the RM30 levied for B5 inspection, Koris urged all sectors to look at the bigger picture.
“What is RM90 if a buyer can spend thousands (of ringgit) on buying a used car?
“This certificate is necessary to ensure that he does not buy a ‘cut’ car or one that is not roadworthy,” he said, adding that there were 9,125 ‘useless’ cars on the road last year alone.
“This argument by the dealers is not acceptable,” he quipped.
On the concern that the B7 inspection will prolong the current two- to three-hour B5 inspection to a whole day, Koris said Puspakom has given an assurance that it will operate on Saturdays and Sundays to overcome the problem.
The concessionaire had also stated in a meeting with the ministry and consumer rights groups recently that it will open nine more branches all over the country.
“So why jump the gun and oppose this new rule?” he asked the car dealers.
On possible corruption to get a good report from Puspakom, as alleged by the car dealers, Koris said that “anything is open to abuse”.
However, he said that the Malaysian Anti-Corruption Commission “is doing a good job” and will handle matters like this.
“We must move forward, we cannot be petty... as there are bound to be corruption here and there,” he added.
Meanwhile, FMCCAM had held a dialogue with Deputy Minister Tan Lian Hoe, but the ministry rejected the federation’s demand to postpone the enforcement.
The movement is planning to take the issue to the prime minister.
Gerakan Youth, too, had submitted a memorandum to Tan demanding a postponement of enforcement, but to no avail.
Koris said he hopes that “no amount of political pressure” will prevent the new rule from being implemented.
He added that he hopes Prime Minister Najib Abdul Razak will not “fall into their trap” as the former is determined that this regulation will benefit all consumers in the long run.
The new rule, effective June 15, will be mandatory for all used cars before these are transferred to new buyers.
Fomca vice-president K Koris Atan (left) said the amendment by the Domestic Trade, Cooperatives and Consumerism Ministry will benefit consumers and ensure their right to information, protection and safety when purchasing used cars.Car dealers who oppose the amendment, Koris said, may have a "hidden agenda" to do away with problematic cars by calling for enforcement to be postponed.
“There is an element of dishonesty in their request,” he told a press conference in Penang today.
“At the end of the day, who will suffer? Only the consumers,” he added, saying that no one should stop the new rule from being properly implemented.
Koris stressed that the new regulation, approved only after 44 years of pressure from consumer rights groups, will apply to the two million used cars which are currently registered with the Motor Data Research Consortium.
It is learnt that the ministry had allowed Puspakom to ink an agreement with the MDRC, another private company, which collects vehicles’ accident history.
But Koris welcomed the consortium, urging all those who felt cheated after buying a faulty used car to now come forward and publicise their case, saying that “some car dealers have got away with this”.
“The public should know so that consumers can boycott dealers who fail to comply with regulations... consumers must know their rights and the power they have,” he added.
He was referring to the 100 used car dealers, represented by the Federation of Motor and Credit Companies Associations of Malaysia , who held a peaceful rally in Kuala Lumpur yesterday, to protest the new development, saying it will only benefit Puspakom.The private concessionaire has a monopoly of computerised vehicle inspection services.
FMCCAM, with 3,000 members, expressed suspicion of a conspiracy within the ministry “to benefit certain quarters and burden the people”.
The 14-point inspection, dubbed B7, will be effective on top of the current compulsory four-point inspection called B5.
The B5 inspection determines if the car was stolen, if the engine has been tampered with, whether there’s any ‘cut and join’ on the body, and on the condition of the windscreen.
‘Look at the bigger picture’
Koris said consumer rights groups have been fighting for these elements for years and complimented the ministry for finally taking the initiative to endorse the law.
On the extra costs incurred by both sellers and dealers as B7 inspection will cost RM90, on top of the RM30 levied for B5 inspection, Koris urged all sectors to look at the bigger picture.
“What is RM90 if a buyer can spend thousands (of ringgit) on buying a used car?
“This certificate is necessary to ensure that he does not buy a ‘cut’ car or one that is not roadworthy,” he said, adding that there were 9,125 ‘useless’ cars on the road last year alone.
“This argument by the dealers is not acceptable,” he quipped.
On the concern that the B7 inspection will prolong the current two- to three-hour B5 inspection to a whole day, Koris said Puspakom has given an assurance that it will operate on Saturdays and Sundays to overcome the problem.
The concessionaire had also stated in a meeting with the ministry and consumer rights groups recently that it will open nine more branches all over the country.
“So why jump the gun and oppose this new rule?” he asked the car dealers.
On possible corruption to get a good report from Puspakom, as alleged by the car dealers, Koris said that “anything is open to abuse”.
However, he said that the Malaysian Anti-Corruption Commission “is doing a good job” and will handle matters like this.
“We must move forward, we cannot be petty... as there are bound to be corruption here and there,” he added.
Meanwhile, FMCCAM had held a dialogue with Deputy Minister Tan Lian Hoe, but the ministry rejected the federation’s demand to postpone the enforcement.
The movement is planning to take the issue to the prime minister.
Gerakan Youth, too, had submitted a memorandum to Tan demanding a postponement of enforcement, but to no avail.
Koris said he hopes that “no amount of political pressure” will prevent the new rule from being implemented.
He added that he hopes Prime Minister Najib Abdul Razak will not “fall into their trap” as the former is determined that this regulation will benefit all consumers in the long run.
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