Proton dealers ask gov't to defer new Hire Purchase Act

The Proton Edar Dealers Association Malaysia (Peda) has asked the government to defer the implementation of amendments to the Hire Purchase Act 1967.

Its president, Armin Baniaz Pahamin, said the postponement was to facilitate a review of the new law which, he said, had been gazetted without prior consultation with the industry.

In a statement today, he said the amendments which took effect yesterday were considered not pragmatic and could potentially stall the growth of the automotive industry.

He said vehicle dealers would be facing serious cash flow problems if they had to hand over booking fees and deposits to the bank first.

Besides, the price of used cars would also be affected when costs also increased with more stringent sale and purchase requirements, he said.

“About 70 percent of new vehicle sales depend on trade in. With this, the market for new cars is also expected to be affected,” he said.

- Bernama