When used car dream crashes


PETALING JAYA: Buying a vehicle – especially a used one – can be a total hit-or-miss affair, as shown by the steady stream of complaints reaching the Consumer Claims Tribunal (TTPM).

In response to queries from The Star, TTPM acknowledged that vehicle purchases and automotive services make up a significant portion of consumer grievances in Malaysia, with 1,622 cases recorded between 2020 and mid-2026.

“The total value of awards granted amounted to RM3,906,039.73 over those years,” it said in a statement.

“The highest amount awarded was in 2023, when RM854,705.57 was granted across 267 claims concerning this issue.”

According to the TTPM, among the most frequently reported issues regarding used cars were deposit refund disputes, where sellers fail to return money after a purchase is cancelled.

“Buyers also frequently face mechanical issues, such as damage to major components like the engine, gearbox or drive shaft.

“Another recurring issue involves the falsification of, or tampering with, odometer records to misrepresent mileage.

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“In some cases, there are mismatches in vehicle identity, such as chassis numbers failing to match original records.

“Because these cases involve forgery and fraud, such matters are referred to the police for further action.

“Finally, administrative failures are common, with sellers either neglecting or delaying the transfer of vehicle ownership to buyers,” said TTPM.

When asked about the distinction between a standard “used car” and a “certified pre-owned car”, TTPM clarified that under the Hire Purchase Act 1967 (Act 212), there is no legal definition separating the two terms.

“The government instead introduced the Hire Purchase Inspection system under Section 4G of Act 212, effective from June 15, 2011.

“This provision requires every used motor vehicle offered under a hire purchase agreement to undergo inspection by the relevant authority to obtain a vehicle inspection report,” it said.

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TTPM was responding to a recent case involving a buyer from Penang who won a tribunal claim after a dealer affiliated with a continental brand concealed the vehicle’s accident history (see “Independent inspections can safeguard car buyers”).

The car trader was ordered to accept the returned vehicle and refund part of the purchase price after the buyer – who represented himself – fought the case through several months of tribunal hearings until the middle of this year.

The turning point came when the buyer took the car to Puspakom for a specialised B2 inspection and presented the findings to the tribunal.

Highlighting the importance of mandatory checks like the B5 and B7 inspections, TTPM emphasised that the system is specifically designed to ensure transparency in used-vehicle hire-purchase transactions and to protect buyers from forgery and fraud.

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