Allow surrender or disposal of old car numbers, JPJ told

 

Currently, one can only transfer the old number plates to a brand-new vehicle.

GEORGE TOWN: A used car trade group has urged the government to implement a system that allows vehicle owners to voluntarily surrender their registration plates to the road transport department (JPJ), reducing bureaucracy and inconvenience.

Federation of Motor and Credit Companies Association of Malaysia (FMCCAM) president Tony Khor said the current practice is that anyone planning to change their car’s registration plates can only transfer the old car’s number to a brand-new vehicle.

He said in the case of used car buyers, some are keen to keep their old car number or obtain a new one but the lengthy and costly process in getting this done is one of the reasons people prefer to buy a new car than getting a used one.

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“In many cases, these buyers are forced to purchase a new, unregistered motorcycle for RM1,800 and go to JPJ to transfer the number from the old car to the bike. This process is wasteful and burdensome,” Khor told a press conference.

He expressed hope that with the recent digitalisation efforts undertaken by JPJ, a system could be developed to allow the disposal or surrender of existing vehicle registration numbers.

According to the JPJ website, the transfer of an existing vehicle registration number is currently limited to newer vehicles owned by the same individual.

Khor emphasised that the existing procedure has deterred a significant number of potential used car buyers. Many buyers would prefer to retain their current car registration numbers when purchasing another used car, but this incurs additional costs.

He said this practice has contributed to stagnating used car sales, which have remained at an average of 400,000 cars annually (as of 2020), while new car sales reached approximately 720,000 in the same year.

Khor said that registration plate disposal is the most viable solution, citing FMCCAM’s data showing that 67% of motorists trade in their old cars for new ones.

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In addition, Khor said the government must expedite the implementation of an online-based vehicle ownership certificate (VoC) (formerly known as the car grant) to streamline administrative processes.

He proposed the integration of the VoC system with the eAuto system – a sales database of all used cars under FMCCAM – with JPJ and the police. This integration could potentially eliminate hurdles in the purchase of used cars.

The association head added that even though the sector appreciates the government’s initiative to liberalise the vehicle inspection service that was monopolised by Puspakom, there are still other obstacles such as number plate transfers and manual registrations that needs to be addressed. - FMT