As an alternative to imposing a lifespan policy of 12 years for vehicles, the MCA has suggested that cars older than 10 years should be subjected to a roadworthiness test.

NONE Young Professionals Bureau chief Chua Tee Yong said this reduce the burden on car-owners while ensuring vehicle safety.

He expressed concern that the 12-year lifespan policy would be detrimental to those in the low- and middle-income groups, who normally take nine-year car loans.

“Those in the lower income group who take loans for second-hand cars would face difficulty in settling their loans,” he said in a statement.

“Furthermore, the introduction of a life span cap will cause those who take nine-year loans to be saddled with new debts three years after settling their loans.”

Chua also pointed out that used-car dealers will face losses due to the significant drop in the value of the cars.

This, he said would lead to many uncertainties including the prospective value of a vehicle after 12 years.

“Banks would be much stricter in approving hire-purchase loans and even provide lower financing to second-hand car buyers,” he explained.

“This will create a negative impact on the industry as owners will find it difficult to sell their cars.”

NONE Deputy Transport Minister Abdul Aziz Kaprawi (right) had said that the ministry is studying the Malaysian Institute of Road Safety (Miros) proposal to implement a lifespan cap for vehicles in order “to protect lives”.

Chua said if the government wants to go ahead with the proposal and is certain it would not burden car owners, then it should first reveal and explain the findings of the Miros study.

“This would surely put an end to speculation and criticism of the policy,” he added.

PKR director of strategy Rafizi Ramli had earlier said it would “ victimise thousands of Malaysians”  who take car loans for nine years.