THE Domestic Trade, Cooperatives and Consumer Affairs Ministry is willing to relax certain regulations under the newly-amended Hire Purchase Act 1967 but will not change anything pertaining to the safety and rights of consumers.
Its Minister, Datuk Seri Ismail Sabri Yaakob, told The Malay Mail yesterday it was looking into reducing the number of checks done on second-hand cars as mandated by the amendments.
"By reducing the checks, the cost of inspection will be cheaper but checks on the brakes and other safety systems will be maintained," said Ismail without specifying what checks will be dropped.
The decision to reduce the checks was made following a meeting between ministry officials and used car dealers associations recently. Under the amendments, effective June 15, all used vehicles for sale must undergo vehicle-inspection company Puspakom's 18-point inspection to ensure their road-worthiness.
Ismail denied the enforcement of the Act had hurt car sales. He said the amendment was aimed at protecting car buyers.
Asked whether he had met with other stakeholders in the automotive industry, Ismail said he had received a memorandum from Proton Edar Dealers Association Malaysia (Peda). Peda and the Federation of Motor and Credit Companies Associations of Malaysia had called for the deferment of the amendments enforcement, claiming it would damage the industry.
On whether the ministry would consider the deferment, Ismail said the amendments were not meant to harm the automotive industry but to protect consumers.
He also poured cold water on car dealers' call for the reinstatement of booking fees and deposit for vehicle sales.
Under the new law, car buyers only need to pay a one per cent booking fee once a bank approves the loan and the other nine per cent downpayment upon the signing of all documentation. Previously, buyers had to fork out 10 per cent of the total cost of the car they intended to purchase even before their loans were approved. If the loans were not approved or if the dealers absconded, the deposit would be forfeited.
These old practices were now outlawed by the new amendments.
Ismail pointed out that the number of complaints against car dealers were among the highest at the Consumers Tribunal.
"In the past, car buyers had to sign blank documents. If they refused, they would be told they would not get the cars. But when they signed, they would end up waiting, sometimes up to six months to get the car," he said.
"Even when a car of a different colour is delivered other than the one a buyer wanted, the dealer will tell the buyer to take it or leave it. Buyers were unable to cancel the deal or they would forfeit most of their deposit. Now, with the amended act, car dealers can no longer do that."
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