PEACE OF MIND: Under interim ownership transfer system car owners won't be held responsible for summonses issued after handing over the vehicles to used-car dealers
THOSE selling their vehicles to used car dealers can now have peace of mind knowing that they will no longer be responsible for new traffic summonses after handing over their vehicles.
This is now possible thanks to the newly-implemented interim ownership transfer system that allows car owners to transfer temporary ownership immediately to the used car dealers while waiting for the car to be sold off.
Launched by Transport Minister Datuk Seri Kong Cho Ha yesterday, the system will prevent car owners from receiving fines and summonses and instalment notices from financial institutions as the car dealer is now the new owner.
More than 3,000 car dealers nationwide are expected to have the online system installed in their premises by the end of the year.
The system entails using the online application to immediately transfer the ownership on their own premises.
Car owners will then be given a transaction slip, endorsed by the Road Transport Department, confirming that the ownership had been transferred.
The temporary ownership is valid for six months, and if the car is not sold within the stipulated time, the ownership will be made permanent.
Kong said the ministry had appointed e-Auto Sdn Bhd and MyEG Services Bhd to offer the system to used car dealers.
There will be a charge of RM10 by the government for every transaction while the service providers will charge RM15 for their services.
The costs will be borne by the car dealers.
Previously, used car dealers would take possession of the cars until they are sold off.
However, the ownership would remain under the original car owner's name until the car was sold off.
Kong said this was when the car owners would be inundated with all kinds of problems, such as summonses and accidents.
"The most frequent complaint received is that the car dealers had absconded with their vehicles and as settlement had not been made, the owners were blacklisted by financial institutions."
Kong said 35 car dealers have been using the new system since January and a further 75 dealers had signed up for it in the Klang Valley area.
On owners selling directly to buyers, he said they could still make the transfers at the RTD offices.
Kong said about 500,000 used cars were sold last year.
Figures for the first three months of this year were expected to be similar.
He said the RTD also hoped to have about 85 per cent of its services available online by year-end.
He said this was necessary as the number of vehicles registered in Malaysia stood at 21.4 million.