Gov't to legalise interim vehicle ownership transfer to used car dealers, which protects interest of sellers –

When you sell your car, you want a clean break. You hand over the keys, you receive the money and you move on. That’s the case for private transactions – both parties meet up at JPJ for the official handover and registration of the new owner. But it’s not like that when selling your car to a used car dealer (UCD).

The existing procedures under the Road Transport Act 1987 only allows for a permanent transfer of ownership from seller to buyer, excluding the UCD. So, after you handover your car to a UCD, it might be still legally under your name, and that’s not desirable because we don’t know what the car is being used for. Only when the UCD finds a buyer for your ex that the car is under new ownership.

In 2011, an administrative measure was made to allow vehicle owners to sell and transfer ownership of their vehicles to the UCD temporarily, with the transfer only becoming permanent after a specific time, if the car has not been moved on by the UCD, that is.

Now, the government wants to make it clear cut by making an interim Vehicle Ownership Transfer (Temporary) into law. This proposed amendment to the Road Transport Act 1987 will – in the words of the transport ministry – protect the interest of the owner when they sell their vehicles to a UCD, to ensure ownership is transferred properly.

“This is also to allow UCD to temporarily have ownership of the vehicle while looking for a new buyer, while ensuring that the rights of the consumer is protected,” the ministry said last week. The cabinet has already approved the MoT’s proposal for this amendment to the Road Transport Act 1987 and the bill to amend Act 333 will be tabled in the an upcoming parliament sitting this year.

This is a good move, as when you sell your car, you don’t want to be liable for any future trouble it gets into. The above-mentioned administrative measure is the current SOP, but it’s still good to make it into law. Anyone here have “interesting” post-handover stories or to share?

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