The July 11 edition of The Edge ran a cover story on the gloomy second-hand car industry:
A combination of factors has slammed the brakes on the car industry. Low trade-in values, uncompetitive prices and inflationary pressures are keeping buyers out of new car showrooms. The New Automotive Policy has not dispelled the uncertainty and confusion. What will put the industry back on track?
· Shakeout among used car dealers
...the collapse of the used vehicle market since March has called for closer scrutiny of the modus operandi of certain industry players.
Kuala Lumpur & Selangor Car Dealers and Credit Companies Association (KLSCDCCA) president Khoo Kah Jin says used vehicle dealers are required by the law to settle payment on trade-in vehicles and to change the names of vehicle owners within seven days of a transaction.
Khoo says this law is currently not adhered to by every dealer. Certain dealers would only pay car sellers after their vehicles are sold, in return for higher trade-in prices.
written by: Yah Wei
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