Infor for those who may concern:
For your reference:
Quick tips for buying a new car & New Hire Purchase Regulations 2011
Buying a new car gives you the peace of mind of being a car’s first owner, and the flexibility to choose the exact car you want.
Setting your budget
Before you think about which car to buy, you’ll need to work out how much you have to spend.
• Work out how much your current car is worth, and whether you’ll sell it privately or part-exchange it with a dealer
• Decide on whether you need to take out finance
• Calculate your likely fuel, insurance and road tax costs
• Work out how much your current car is worth, and whether you’ll sell it privately or part-exchange it with a dealer
• Decide on whether you need to take out finance
• Calculate your likely fuel, insurance and road tax costs
Choosing the right car
With more choice than ever, choosing your perfect car can be a confusing process. Make things easier by spending some time working out what you need from your car. Think about:
• What the car will be used for
• How many passengers will be regularly carried
• How much will it cost to service and repair
• What the car will be used for
• How many passengers will be regularly carried
• How much will it cost to service and repair
Test driving a car
It’s unlikely you’ll be able to test drive the actual new car you’re buying, but you should be able to drive a similar version.
• Ask the dealer to arrange a drive in a car that’s as close as possible to the one you’re looking to buy; sometimes you may need to drive several cars to sample the bodystyle, engine and gearbox separately
• Make sure you can get comfortable behind the wheel, are satisfied with the way the car drives and you have sufficient visibility
• If you regularly carry passengers or luggage, load up the car to see how it copes
• Ask the dealer to arrange a drive in a car that’s as close as possible to the one you’re looking to buy; sometimes you may need to drive several cars to sample the bodystyle, engine and gearbox separately
• Make sure you can get comfortable behind the wheel, are satisfied with the way the car drives and you have sufficient visibility
• If you regularly carry passengers or luggage, load up the car to see how it copes
Drop in June car sales – Amended Hire-Purchase Act said to be causing delays
By THOMAS HUONG and EUGENE MAHALINGAM
starbiz@thestar.com.my
starbiz@thestar.com.my
PETALING JAYA: The amendments to the Hire-Purchase Act 1967 (HPA) that took effect on June 15 has caused delays in vehicle registrations and should result in lower total industry sales for the month.
Car players said the drop did not mean people were buying fewer cars but reflected the longer time to book a sale and they expect the registration numbers to smoothen out in July.
When contacted, a Honda Malaysia Sdn Bhd spokesperson said daily vehicle bookings at the Japanese marque’s authorised dealers had dropped by almost 50% since the amended Act took effect.
“However, vehicle demand remains strong, and our showrooms’ visitor traffic is high. The decline in vehicle bookings is due to the amended Act which requires longer documentation and paperwork process between the banks, car dealers and customers,” said the spokesperson.
Local Nissan vehicle distributor Edaran Tan Chong Motor Sdn Bhd (ETCM) said vehicle registrations were expected to be 15% down for June.
ETCM executive director Datuk Dr Ang Bon Beng said the amendments had created a lot of anomalies in the car-buying process and delays for the company to secure sales.
“The HPA has created a negative impact and we are already feeling it. We expect sales in June to be down by 15%,” he told StarBiz.
“Buying a car has become more complicated with more variables to address. It becomes harder for customers to buy a car,” Ang added.
Under the amendments, all used vehicles for sale will undergo Puspakom’s 18-point inspection to ensure their roadworthiness.
Another issue of contention was the 1% maximum booking fee (based on the total selling price) mandated by the amended Act, which requires car sellers to refund customers 90% of the booking fee if the deal falls through.
Unlike the past, presently car sellers or dealers cannot accept booking fees before the car buyer is served with a Second Schedule notice.
The Second Schedule notice can only be completed and served on the car buyer usually after the hire-purchase loan application is approved.
The remaining 9% downpayment on the car can only be paid when the hire-purchase agreement has been prepared, with details such as the car’s chassis number included.
This means the hire-purchase agreement can only be prepared after the actual car unit has been allocated to the dealership.
“The new (car-buying) process is slow. The Government should look into the matter,” said Ang.
Meanwhile, sources in UMW Toyota Motor Sdn Bhd also claimed that Toyota passenger car sales saw a year-on-year sales decline in June due to the amended Act.
A Proton Holdings Bhd spokesperson said that due to the amended Act, its vehicle sales declined between 20% and 30% in June.
“The sales decline in June is in comparison with our average monthly sales,” said the spokesperson.
According to reports, the Malaysian Automotive Association (MAA) intends to meet with the Domestic Trade, Cooperatives and Consumerism Ministry to “iron out” issues concerning the HPA.
MAA members include car marque franchise holders and auto assemblers in the country.
Amendments to Hire Purchase Act will ‘kill’ automotive industry, says association
Mail Q&A: Raising the red flag
MARHALIM ABAS
Wednesday, June 29th, 2011 12:33:00
Wednesday, June 29th, 2011 12:33:00
THE Proton Edar Dealers Association Malaysia (PEDA) is calling for the deferment of the amendments to the Hire Purchase Act 1967, claiming it is not pragmatic and may halt the growth of the automotive industry.
Dealers may even go bankrupt and it is the banks who are having the final say on the sale of cars.
The Malay Mail’s senior writer MARHALIM ABAS spoke to its president Armin Baniaz Pahamin (pic), who says if the government does not step in and put a halt to the amendments, the automotive industry would suffer tremendously.
There is also no proper understanding on the nature of the amendments and it is leaving everyone from the banks to dealers in a quandary.
Q: What is wrong with the amendments to the Act? Have you got the numbers to back your claims?
A: Since it only came into force recently (June 15), the full impact of the amendments has yet to be seen throughout the network. However, I can say the booking for Proton cars has gone down by 50 per cent.
A: Since it only came into force recently (June 15), the full impact of the amendments has yet to be seen throughout the network. However, I can say the booking for Proton cars has gone down by 50 per cent.
The impact can also be seen during a sales carnival by a dealer who specialised in reconditioned cars and at the Perodua launching of the new Myvi. We can see customers eager to place booking for particular cars but the salesman and the dealer cannot make the booking. The waiting list only starts when the money is paid, so you see that the first process has been lost as under the amendments you cannot take booking until the loan was approved.
So, whatever that is done by the dealer will only be taken into consideration when all official documentation is received and the loan approved.
Q: So, only when the loan is approved can the sale be considered safe?
A: Yes, only then the sale numbers materialise in the system. And we also cannot complete the documentation for the hire purchase agreement until the car we ordered arrives as under the new amendments, we cannot issue out blank documents. We then need to fill up every detail about the vehicle and its purchase before it can be sent to the bank for the hire purchase agreement. It is only then the purchaser needs to pay the full downpayment.
A: Yes, only then the sale numbers materialise in the system. And we also cannot complete the documentation for the hire purchase agreement until the car we ordered arrives as under the new amendments, we cannot issue out blank documents. We then need to fill up every detail about the vehicle and its purchase before it can be sent to the bank for the hire purchase agreement. It is only then the purchaser needs to pay the full downpayment.
Q: Can’t a verbal agreement be seen as a contract?
A: Under the sales contract, there is the buyer, seller and consideration, which is the money paid. When there is no money paid, there is no contract. You need the money for the contract to materialise.
A: Under the sales contract, there is the buyer, seller and consideration, which is the money paid. When there is no money paid, there is no contract. You need the money for the contract to materialise.
Q: Can you take us through what kind of problems your member will face now?
A: Let’s say one has 10 customers… customer A, B, C, D, E and so on. They submit their documents to di fferent banks and due to di fferent processes, customer E gets his Letter of Undertaking first, meaning he will get the car first. So, there is no queuing under the new system.
A: Let’s say one has 10 customers… customer A, B, C, D, E and so on. They submit their documents to di fferent banks and due to di fferent processes, customer E gets his Letter of Undertaking first, meaning he will get the car first. So, there is no queuing under the new system.
If the dealer has a sales promotion over a weekend, customers may lose out what was o ffered during that period. Before, as long as your booking was made during that particular period, we key-in the particulars over the system so even if the loan approval came much later the customer will still get what was promised during the period.
Now, of course, we cannot make the booking as under the Act, we are not supposed to do it. Yet, that is not the main problem. Seventy per cent of our customers are those who want to trade their cars. Now, cars need to be inspected at Puspakom. Each car needs to be inspected and its faults documented, in a detail form. Before, you just need to look at the car or maybe test drive it before making the purchase.
Even before the new amendments came into force, used car dealers slashed the prices of second hand cars up to RM10,000. The used car dealers slashed the prices because they fear they cannot sell the vehicles.
Q: Is the problem exclusive to PEDA members?
A: It is across the industry. After we issued the Press statement, Perodua dealers association contacted us so we could meet with the government in order for us to discuss to postpone or defer the amendments.
A: It is across the industry. After we issued the Press statement, Perodua dealers association contacted us so we could meet with the government in order for us to discuss to postpone or defer the amendments.
PEDA represents 80 per cent of Proton dealers in the country while the Perodua association also represent 80 per cent of their segment. Together, we make up 60 per cent of the total market share.
The amendments do not specify whether it focuses on the national car segment or not. It is general and it covers all vehicles not just cars, van, motorcycle or trucks. The impact is more unique to the automotive industry and more unique for the national car segment.
You know every time, a new car is introduced, be it low or high season, the speculation by the general public and used car dealers remain high. In the past, when the booking fees were RM1,000 or RM5,000, they could make bookings for 20 cars. If you cannot accurately gauge the actual booking, how can you commit to the factory? How can you make forecast to Proton?
Our business is unique as it’s a bulk sale. In the past, if we make a forecast of 50 cars, we can easily con firm as booking fees are made. Now it is all to the banks. If the o fficer can complete the documentation in 24 hours, we will know whether the customer is approved or not the next day. But some banks take two or three weeks to process loans documentation. It will be two weeks before we get the Letter of Undertaking and other documents.
Q: Since the amendments have been enforced, which forbids salesmen and dealers from collecting booking fees without the loan approval, have you heard of instances of anyone being arrested during the last five days?
A: Yes. Two cases so far, one up north and another in Kuala Lumpur, when a reconditioned car dealer held a sales carnival over the weekend. The dealer collected a lot of booking fees, not knowing they cannot do so. I was told an enforcement o fficer from the Domestic Trade, Cooperatives and Consumerism Ministry had posed as a customer and paid the booking fee. The dealer was subsequently arrested. The ministry said they will give a grace period of six months before coming down hard on errant salesmen and dealers.
Previously, the fines were between RM1,000 and RM3,000. Now, for the first o ffence for companies, the penalty is RM100,000 and for the second o ffence, it is RM250,000. So, just imagine if a dealership collects a booking fee of RM1,000, for example, for a Persona and the loan has not been approved, it can be fined RM100,000. Furthermore, under the law, the booking fee is
only one per cent of the car price, so the dealership has already committed a second offence which makes it liable to be fined RM250,000.
only one per cent of the car price, so the dealership has already committed a second offence which makes it liable to be fined RM250,000.
Q: Was PEDA purview to the amendments? Were the other stakeholders aware of the consequences?
A: Until the Act was gazetted, even banks were not aware. The banks only came to know about the amendment after it was gazetted. The amendments had gone through drafting and tabling in Parliament without prior discussions with stakeholders.
A: Until the Act was gazetted, even banks were not aware. The banks only came to know about the amendment after it was gazetted. The amendments had gone through drafting and tabling in Parliament without prior discussions with stakeholders.
Q: What’s the solution then?
A: First of all, we hope the enforcement of the amendments are deferred and postponed and the government will meet with the stakeholders on how to minimise the impact. We have met with the Association of Banks Malaysia, Association of Islamic Banks Malaysia and individual banks. Everybody is confused. If you follow the amendments, the banks as the bene ficial owners must be the one collecting the booking fee and downpayments. Now, we have to totally depend on the already overworked marketing o fficers.
Even before the amendments came into e ffect, it was hard to catch marketing o fficers for various reasons. Now, it appears we cannot even do business.
Q: Based on what you are saying, it appears the banks are now the de-facto car dealer.
A: Yes it’s the banks, not the car dealers. When we bring customers up to the marketing o fficer to ensure the deal happens, we no longer need to work diligently as it will all depend on the marketing officers.
A: Yes it’s the banks, not the car dealers. When we bring customers up to the marketing o fficer to ensure the deal happens, we no longer need to work diligently as it will all depend on the marketing officers.
To make matters worse, every bank has its standard operating procedure (SOP). Today, if a marketing o fficer from one bank come to us, he or she will brief us on their SOP. Tomorrow, another officer from another bank will tell us another SOP. If the banks cannot synchronise their SOPs, how can the 250 Proton Edar dealers be homogenous on the same amendments? Everyone has their own SOPs at the moment. Even the ministry o fficials are confused. How do you expect the industry and the general public to understand the amendments?
Therefore, we strongly believe the enforcement should be postponed until everyone in the industry understand the nature of the amendments so we can explain it to our customers.
Q: What’s the time frame for the deferment?
A: Until everyone understands the amendment. The government is saying they support entrepreneurs but they keep introducing policies which are stifling entrepreneurship. If this goes on, half of the 5,000 used car dealers will close shop.
A: Until everyone understands the amendment. The government is saying they support entrepreneurs but they keep introducing policies which are stifling entrepreneurship. If this goes on, half of the 5,000 used car dealers will close shop.
For example, on the first day the amendments came into force, RHB Bank stopped credit facilities to our members. Forecast for the sales can only be done at the end of the month.
Q: Apart from the Domestic Trade Ministry, are you sending the memorandum to anyone else?
A: Since the ministry has purview over the Act, we are going to them first. We will also be meeting with our advisor Tun Dr Mahathir (Mohamad) and Prime Minister Datuk Seri Najib Razak, who is also the Finance Minister.
A: Since the ministry has purview over the Act, we are going to them first. We will also be meeting with our advisor Tun Dr Mahathir (Mohamad) and Prime Minister Datuk Seri Najib Razak, who is also the Finance Minister.
Q: Will car dealers gulung tikar (go bankrupt) within one or two months if your deferment application is not met?
A: I don’t want to be that dramatic as I am aware of the possible reaction, but I will say this. The automotive industry is the second largest industry in the Malaysian economy after properties. Any repercussion on the automotive industry will have a very huge impact on the national economy.
Q: Why is this happening to the automotive industry since, as you say, it’s one of the economy’s most important sectors?
A: This sounds a little bit harsh but I hope it will be published. Personally speaking, I do not know where the government is heading with the automotive industry. None of the industry stakeholders were consulted before new policies are introduced.
With the amount of revenue and taxes generated by the industry from excise duties to road duties, how much percentage of the revenue is ploughed back into the industry? The answer is negligible and at the same time, the government never refer to stakeholders on new policies.
For example, when they launched the National Automotive Policy a few years back, car prices for both new and used cars decreased overnight. The government says they want entrepreneurship to prosper but at the same time, they implement policies which have adverse impact on the very group they say they want to develop and see prosper.
‘Penjual kereta tak rugi’
Isnin, 27 Jun 2011
GABUNGAN Persatuan Pengguna Malaysia (Fomca) menganggap dakwaan Persekutuan Persatuan Syarikat Motor dan Kredit Malaysia (FMCCAM) yang berpendapat industri kereta terpakai tempatan dijangka mengalami kerugian sehingga RM3 bilion nilai pasaran industri tahun ini berikutan pindaan Akta Sewa Beli 1967 (pindaan 2010), adalah tidak berasas.
Pengarah Komunikasinya, Mohd Yusof Abdul Rahman, berkata pindaan akta itu melindungi pengguna dan memang tepat pada masanya dilaksanakan.
“Walaupun pindaan akta ini banyak memihak pengguna, saya berpendapat ia tidak akan merugikan penjual seperti didakwa.
“Mengenai wang tempahan satu peratus daripada harga jualan kenderaan yang boleh diambil semula jika pembatalan pembelian berlaku, saya rasa ia wajar kerana sebelum ini banyak kes wang tempahan tidak dipulangkan penjual walaupun pembatalan bukan dibuat oleh pengguna,” katanya.
Semalam, Bisnes Metro melaporkan kerisauan FMCCAM berhubung pelaksanaan pindaan Akta Sewa Beli 1967 (pindaan 2010) yang dilaksanakan minggu lalu dan menjangka industri bakal mengalami kerugian sehingga RM3 bilion iaitu kira-kira 20 peratus daripada RM15 bilion nilai pasaran industri tahun ini.
Mengulas lanjut, Mohd Yusof berkata, berikutan pelaksanaan pindaan akta terbabit, pengguna kini mempunyai lebih banyak pilihan dan keyakinan untuk membeli kenderaan.
“Fomca memang sejak dulu mendesak kerajaan mengkaji akta ini dan menyokong penuh pindaan dilakukan,” katanya.
-myMetro
Ministry to meet car industry reps on how New HP Act is impacting sales
Friday June 24, 2011
By THOMAS HUONG
huong@thestar.com.my
huong@thestar.com.my
KUALA LUMPUR: The Domestic Trade, Cooperatives and Consumerism Ministry will be meeting financial institutions and used car industry representatives to discuss issues on vehicle sales, resulting from the recently amended Hire-Purchase Act 1967.
Minister Datuk Seri Ismail Sabri Yaakob said he had instructed the ministry’s legal and enforcement departments to do so.
Regarding complaints of a slowdown in car sales since the amended Act took effect on June 15, Ismail said, “We will need to look at the causes of the problem.”
He reiterated that the Act was amended to protect the interests of consumers.
“Of course, with the amended Act, the documentation process (by financial institutions and vehicle dealerships) is more troublesome and takes more time,” Ismail said yesterday after officiating at a function concerning the Government’s Tukar (transform) initiative, aimed at helping traditional sundry shops stay competitive.
To recap, car marque franchise holders and dealers contacted by StarBiz recently said they were worried about the possibility of trickling cashflow, a rise in booking cancellations and longer lead-time for completion of sales resulting from the amended Act.
Malaysian Automotive Association president Datuk Aishah Ahmad said on Wednesday that the amended Act had definitely impacted car sales and there were “teething” problems in the vehicle retail trade.
The Proton Edar Dealers Association Malaysia and Federation of Motor and Credit Companies Association of Malaysia have urged the Government to defer and review the amendments to the Act.
PEKEMA Mahu Pindaan Akta Sewa Beli Dimansuhkan
23/06/2011
KUALA LUMPUR, 23 Jun (Bernama) — Pindaan Akta Sewa Beli 1967 akan menjejaskan industri automotif Malaysia tahun ini dan harus dimansuhkan, kata Persatuan Pengimport dan Peniaga Kenderaan Melayu Malaysia (PEKEMA).
Presidennya, Datuk Zainudin Abd Rahman berkata, pindaan tersebut bukan sahaja menyusahkan para penjual malah mampu merudumkan ekonomi negara jikalau ianya tetap diteruskan.
“Jualan pengimport berkemungkinan akan terjejas, gunalah sahaja sistem yang lama. Mereka sepatutnya berbincang terlebih dahulu dengan industri,” kata Zainudin pada satu sesi taklimat media selepas merasmikan mesyuarat agung tahunan persatuan itu pada Khamis.
Beliau berkata kerajaan cuba melindungi pengguna, tetapi menyusahkan peniaga. Proses yang memakan masa yang panjang itu menyulitkan semua pihak.
“Tidak lama lagi nak raya, masa ini lah orang nak beli kereta. Akta ini menghalang niat orang untuk membeli kereta,” katanya.
Antara lain, permintaan itu dibuat kerana para pengedar kenderaan akan menghadapi masalah aliran tunai yang serius disebabkan wang tempahan dan deposit perlu dijelaskan terlebih dahulu kepada bank.
Ini bagi memastikan jumlah kutipan wang adalah sama jumlahnya dengan harga kereta di atas jalan (OTR) sebelum pihak bank membenarkan pengeluaran bayaran dikeluarkan kepada pengedar.
Selain itu, persatuan turut menggesa Kementerian Perdagangan Antarabangsa dan Industri (MITI) supaya Dana Automotif Bumiputera disegerakan dilaksanakan.
Dana yang bertujuan pembangunan Bumiputera dalam industri automotif yang kini dianggarkan berjumlah RM500 juta masih belum disalurkan oleh Kementerian Kewangan (MOF) kepada MITI.
Ini supaya ianya dapat digunakan untuk perkembangan dan pembangunan syarikat-syarikat pengimport khasnya dan Bumiputera amnya, bahkan juga turut dilanjutkan kepada industri lain yang diceburi yang boleh mendatangkan keuntungan.
Sementara itu, melalui Yayasan PEKEMA, beliau turut menyampaikan sumbangan berbentuk replika cek yang berjumlah RM120,000 kepada 10 badan pertubuhan yang memerlukan.
Antaranya ialah, Persatuan Bekas Anggota Perisikan Malaysia, Pertubuhan Kanak-kanak Insan Istimewa Cemerlang (KIIC) dan Persatuan Kerabat DiRaja Kedah.
– BERNAMA
MAA to meet ministry to iron out issues on car sales
Thursday, June 23, 2011 9:37 AM
PETALING JAYA: The recent amendments to the Hire-Purchase Act 1967 (HPA) has definitely affected car sales, said Malaysian Automotive Association (MAA) president Datuk Aishah Ahmad.
“It is still too early to tell about the actual impact. We are collecting data from our members,” said Aishah in a phone interview yesterday.
MAA members include car marque franchise holders and auto assemblers in the country.
Aishah noted that presently, there were “teething” problems in the car retail trade.
“Based on feedback from some MAA members, there are anomalies in the car buying process. For example, some banks seem to be more stringent compared with others concerning the documentation process,” she said, adding that MAA had requested for a meeting with the Domestic Trade, Cooperatives and Consumerism Ministry to “iron out” issues.
However, contrary to claims by some car retailers, Aishah said it was not true that the Government did not consult the automotive sector’s stakeholders before implementing the amended Act.
“The Government has done its work, and received inputs from the automotive industry in the past six months. Issues have been discussed at length. Roadshows were organised in the country this year,” she said.
However, one financial institution’s hire-purchase manager contacted by StarBiz yesterday said “it was business as usual”.
The manager said steps were taken earlier to mitigate the effect on car dealers familiar to the financial institution, such as authorising them to collect vehicle booking fees and downpayments on its behalf.
“So far, our average period for hire-purchase loan approvals, ranging from one to three days from the point of submission of completed documentation, has remained unchanged,” said the manager.
To recap, stakeholders in the automotive sector contacted by StarBiz on Monday had complained of a slowdown in car sales since the amended Act took effect on June 15.
Car marque franchise holders and dealers said they were worried about the possibility of trickling cashflow, a rise in booking cancellations and longer leadtime for completion of sales resulting from the amended Act.
Perusahaan Otomobil Kedua Sdn Bhd managing director Datuk Aminar Rashid Salleh had pointed out that the company might not be able to efficiently register vehicles on time for buyers, especially during the month-end rush, due to a longer process that required detailed paperwork between the banks, Perodua and customers.
Under the amended Act, all used vehicles for sale will undergo Puspakom’s 18-point inspection to ensure their roadworthiness.
The amendments, among others, also entail the need for banks to obtain a court order before repossessing a vehicle and repossessors must be registered with the Domestic Trade, Cooperatives and Consumerism Ministry.
Another issue of contention was the 1% maximum booking fee (based on the total selling price) mandated by the amended Act, which requires car sellers to refund customers 90% of the booking fee if the deal falls through.
Unlike the past, presently car sellers or dealers cannot accept booking fees before the car buyer is served with a Second Schedule notice.
It is understood that the Second Schedule notice can only be completed and served, in practice, on the car buyer usually after the hire-purchase loan application is approved.
The remaining 9% downpayment on the car can only be paid when the hire-purchase agreement has been prepared, with details such as the car’s chassis number included.
This means the hire-purchase agreement can only be prepared after the actual car unit has been allocated to the dealership.
Also, only banks or bank-authorised car dealers are allowed to collect car booking fees and downpayments.
Malaysia Car sales impacted by amended Hire-Purchase Act
Wednesday June 22, 2011
By THOMAS HUONG and EUGENE MAHALINGAM
starbiz@thestar.com.my
starbiz@thestar.com.my
PETALING JAYA: Worried about the possibility of trickling cashflow, a rise in booking cancellations and longer leadtime for completion of sales, many stakeholders in the automotive sector say the recent amendments to the Hire-Purchase Act 1967 (HPA) will hurt the car retail trade. Already, there are complaints of a slowdown in sales.
While some car marque franchise holders and dealers said they were supportive of the amendments, which aim to protect vehicle buyers from losing their booking fees and deposits paid to unscrupulous sales advisors and car dealers, among other benefits, many automotive stakeholders have described the amended Act as “confusing” and “troublesome.”
One car dealership’s general manager said the situation was “unbelievable” and the amended Act overly protected consumers to the detriment of car retailers.
The Proton Edar Dealers Association Malaysia (PEDA) and Federation of Motor and Credit Companies Association of Malaysia have urged the Government to defer and review the amendments to the Act
PEDA president Armin Baniaz Pahamin claimed that Proton car sales had dropped by 50% since last week. Another car dealership’s general manager claimed that the sales of a Japanese car marque had also dipped significantly.
“Normally, the Japanese principal allocates between 150 and 200 cars to its dealers each week. In the last few days, the allocation dropped to only 10 cars. This is because until we have firm orders (meaning booking fees), we will not order the cars from the principal,” he claimed.
Under the amendments, effective June 15, all used vehicles for sale will undergo Puspakom’s 18-point inspection to ensure their roadworthiness.
Another issue of contention was the 1% maximum booking fee (based on the total selling price) mandated by the amended Act, which requires car sellers to refund customers 90% of the booking fee if the deal falls through.
Armin pointed out that unlike in the past, presently car sellers or dealers could not accept booking fees before the car buyer was served with a Second Schedule notice.
“The Second Schedule notice can only be completed and served, in practise, usually after the hire purchase loan application is approved.,” he said yesterday. The remaining 9% downpayment on the car can only be paid when the hire purchase agreement has been prepared, with details such as the car’s chassis number included.
This means the hire purchase agreement can only be prepared after the actual car unit has been allocated to the dealership.
“Now, with the amended Act, a car buyer can place phantom bookings’ at several different car dealerships without paying booking fees. This will result in a waste of loan application resources and inefficiencies for banks and car dealers,” said Armin.
He said car buyers would have to pay more visits to car dealers or banks to sign documents.
With the amended Act, car dealers would face cashflow problems as they would lack the booking fees and downpayments as working capital to pay for the cars ordered from their principals.
Armin claimed that the Government did not consult stakeholders before implementing the amended Act.
Meanwhile, car dealers and marque franchise holders have expressed unhappiness over the issue and said the car buying process now involved more paperwork.
“We are studying the implications on our current vehicle-promotion packages,” said an industry source.
One car dealership manager in Alor Setar said the amended Act made it tough for dealers to offer “zero downpayment” or “full loan” packages.
Perusahaan Otomobil Kedua Sdn Bhd managing director Datuk Aminar Rashid Salleh said while the company supported the amended Act, automakers that sold cars in high volumes might see sales impacted.
“We may not be able to efficiently register the vehicles on time for our customers, especially during the month-end rush.
“This is due to the longer process flow that requires detailed paperwork between the banks, Perodua and our customers.”
Industri kereta terpakai dijangka rugi RM3 bilion
Selasa, 21 Jun 2011
PERSEKUTUAN Persatuan Syarikat Motor dan Kredit Malaysia (FMCCAM) berpendapat industri kereta terpakai tempatan dijangka mengalami kerugian sehingga RM3 bilion iaitu kira-kira 20 peratus daripada RM15 bilion nilai pasaran industri tahun ini ekoran pindaan Akta Sewa Beli 1967 (pindaan 2010) yang dilaksanakan Jun lalu.
Presidennya, Datuk Tony C B Khor, berkata antara lain pindaan itu membolehkan pembeli melunaskan pembayaran pendahuluan selepas pinjaman bank diluluskan dan ia dikatakan amat ketat serta membebankan penjual.
“Urusan jual beli kereta akan melalui pelbagai proses dokumentasi yang menelan masa dan kos. Pembeli yang berubah fikiran kini berhak membatalkan pembelian bila-bila masa sedangkan kami sudah melakukan proses pinjaman dan pertukaran hak milik. Jika ini berlaku, siapa yang akan menanggung semua kerugian ini? “Ia secara tidak langsung menyebabkan ramai penjual kereta terpakai bimbang dengan pindaan akta yang dilihat hanya menyebelahi satu pihak saja,” katanya pada sidang media sempena majlis menandatangani perjanjian kerjasama antara eAuto Sdn Bhd dengan FMCCC di Genting Highlands, semalam.
Tony berkata, jualan kereta terpakai mencecah 40,000 hingga 50,000 kereta sebulan, kira-kira 450,000 hingga 500,000 setahun dengan nilai jualan RM15 bilion.
Sementara itu, Persatuan Pengedar Proton Edar Malaysia (Peda) meminta kerajaan menangguhkan sepenuhnya pelaksanaan pindaan Akta Sewa Beli 1967 bagi mengurangkan kesan negatif kepada industri automotif di negara ini.
Presidennya, Armin Baniaz Datuk Pahamin, berkata pindaan itu yang sudah diwartakan tanpa perbincangan awal dengan pihak industri perlu dikaji semula.
“Pindaan Akta Sewa Beli itu yang berkuat kuasa Khamis lalu difahamkan tidak pragmatik dan boleh menghentikan pertumbuhan industri automotif dan permintaan itu dibuat kerana pengedar kenderaan akan menghadapi masalah aliran tunai yang serius disebabkan wang tempahan dan deposit perlu dijelaskan terlebih dulu kepada bank.
“Ini bagi memastikan jumlah kutipan wang sama jumlahnya dengan harga kereta di atas jalan (OTR) sebelum pihak bank membenarkan pengeluaran bayaran dikeluarkan kepada pengedar,” katanya.
-mymetro
Minta Pelaksanaan Pindaan Akta Sewa Beli Ditangguh
PEDA Minta Pelaksanaan Pindaan Akta Sewa Beli Ditangguh
KUALA LUMPUR, 17 Jun (Bernama) — Persatuan Pengedar Proton Edar Malaysia (Peda) Jumaat meminta kerajaan menangguhkan sepenuhnya pelaksanaan pindaan Akta Sewa Beli 1967 bagi mengurangkan kesan negatif kepada industri itu di Malaysia.
Presidennya, Armin Baniaz Datuk Pahamin berkata, pindaan itu, yang telah diwartakan tanpa perbincangan awal dengan pihak industri, juga perlu dikaji semula.
Dalam satu kenyataan di sini hari ini, beliau berkata, pindaan Akta Sewa Beli itu yang berkuat kuasa semalam difahamkan tidak pragmatik dan boleh menghentikan pertumbuhan industri automotif.
Antara lain, katanya permintaan itu dibuat kerana para pengedar kenderaan akan menghadapi masalah aliran tunai yang serius disebabkan wang tempahan dan deposit perlu dijelaskan terlebih dahulu kepada bank.
Ini bagi memastikan jumlah kutipan wang adalah sama jumlahnya dengan harga kereta di atas jalan (OTR) sebelum pihak bank membenarkan pengeluaran bayaran dikeluarkan kepada pengedar.
Katanya pengedar juga akan kekurangan pembayaran pendahulan sebagai modal untuk membayar kereta yang ditempah oleh pelanggan.
Selain itu, harga kereta terpakai juga turut terjejas apabila kos turut meningkat dengan syarat-syarat yang lebih ketat untuk membeli dan menjual kereta, katanya.
“Sebanyak 70 peratus jualan kenderaan baru adalah bergantung kepada kereta tukar beli. Dengan ini, pasaran kereta baru dijangka turut terjejas,” katanya.
Peda dan pihak lain dari industri memahami matlamat dan objektif kerajaan, dan bersedia untuk bekerjasama dengan pihak kementerian untuk mencapai matlamat tersebut dengan impak yang minimum.
– BERNAMA
AMENDED HIRE-PURCHASE ACT WILL HARM USED CAR INDUSTRY
GENTING HIGHLANDS, June 19 (Bernama) — The used car industry in Malaysia is
expected to drop by 20 per cent this year due to amendments to the Hire-Purchase
Act 1967, says the Federation of Motor and Credit Companies Associations of
Malaysia.
expected to drop by 20 per cent this year due to amendments to the Hire-Purchase
Act 1967, says the Federation of Motor and Credit Companies Associations of
Malaysia.
Its president Datuk Tony Khor Chong Boon said the amendments, which came
into force on Wednesday, would damage the industry.
“The used car industry is very important to our economy,” he told a press
conference after the signing ceremony on e-Services between the chief executive
officer of eAuto Sdn Bhd (eAuto), Ganesh Kumar Bangah and Khor.
into force on Wednesday, would damage the industry.
“The used car industry is very important to our economy,” he told a press
conference after the signing ceremony on e-Services between the chief executive
officer of eAuto Sdn Bhd (eAuto), Ganesh Kumar Bangah and Khor.
The signing was witnessed by Road Transport Department director-general
Datuk Solah Mat Hassan.
Datuk Solah Mat Hassan.
Khor said that if the used car industry did not move, banks would have no
business as the industry”s total loan size was between RM140 billion and RM150
billion.
business as the industry”s total loan size was between RM140 billion and RM150
billion.
Responding to a question, Khor urged the government to review the
amendments, given the high risks involved.
amendments, given the high risks involved.
He said the law must be balanced, with the interests of the industry and
customers protected, adding that used car dealers are also consumers.
Meanwhile, the collaboration in e-service implementation between eAuto
(formerly known as Taktik Bebas Sdn Bhd) and the federation will facilitate and
provide extensive online support to some 3,000 members in conducting their core
business in buying and selling of used cars and in their day-to-day operations.
customers protected, adding that used car dealers are also consumers.
Meanwhile, the collaboration in e-service implementation between eAuto
(formerly known as Taktik Bebas Sdn Bhd) and the federation will facilitate and
provide extensive online support to some 3,000 members in conducting their core
business in buying and selling of used cars and in their day-to-day operations.
The Interim e-Transfer Gateway, a part of e-Services, was welcomed by the
federation and JPJ.
federation and JPJ.
Solah said the system, with direct interface with JPJ, would be implemented
in November.
in November.
– BERNAMA
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