MALAYSIA’S used car market is projected to grow by a compound annual growth rate of 10% over the next three years.
The Federation of Motor & Credit Companies Associations of Malaysia (FMCCAM) president Datuk Tony Khor said this is supported by the popularity of online car platforms which sparks convenience among buyers.
“However, for used car sales to overtake that of new cars, we need to instil confidence among buyers.
“This means that they must feel safe and protected when buying a used car which is similar to them buying a new car today,” he said in a speech during the launch of eAutoGen Capital Sdn Bhd’s AutoGen Plus today.
Meanwhile, Khor also suggested that a “lemon law” be introduced to benefit both buyers and industry players, where manufacturers are also liable for any defects in the vehicle.
He said if this law is implemented, manufacturers are required to repair the defects, reimburse or refund consumers in cases where the damages cannot be fixed.
“By comparison to our neighbouring countries and other developed countries where the used car market is better regulated, we believe that the implementation of the lemon law in our country is imminent,” he added.
Also present at the event was Domestic Trade and Consumer Affairs Minister Datuk Seri Alexander Nanta Linggi (centre) who agreed that laws could be refined to protect consumers.
“Malaysia could use something like the lemon law, which is being used in developed countries like the US,” he said, adding that the authorities are already discussing this and they are now inviting input from the industry which is highly favourable to the lemon law.
“This is a step forward and we look to make improvements later,” he added.
Today, eAutoGen Capital and FMCCAM introduced their affordable extended warranty programme, the AutoGen Plus to help used and aged car owners with costly repairs.
These owners can enjoy an affordable rate of RM298 per annum which covers a variety of private used car brands and models of up to 10 years old and within 200,000km odometer reading.
eAutoGen Capital MD Ray Khor said this warranty will help to shield the impact of costly engine and transmission repairs which are associated with pre-existing issues.
“Besides easing the financial burden of car owners, AutoGen Plus aims to boost confidence in the used car market for both buyers and dealers in a currently underregulated used car market.
“Before activating the extended warranty, it is compulsory for all cars under the programme to undergo a short diagnosis test and inspection by appointed inspectors,” he explained.
AutoGen Plus is underwritten by Berjaya Sompo Insurance.
Users can reach out to an extensive network of more than 4,000 car dealers across nine states to boost confidence in Malaysia’s growing second hand car market.
At the same time, AutoGen Plus owners can access a trusted panel of more than 200 workshops to conduct periodic maintenance and repair works.
Source: The Malaysian Reserve