Risks of a Used Car Transaction: Vehicle Ownership

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Editors%2 Fimages%2 F1674037382154 Risk Vehicle Ownership Transfer Malaysia Featured

(Photo Credit: Pixabay)

A second-hand car is more often than nought the financially savvier option for a majority of people. However, there are some risks involved that can cause quite a headache if you're not careful!

Malaysia has a land mass of about 330,000 km². That's a pretty big area to cover especially when you're talking about public transportation. Although the government has taken some steps to improve public transport, it's no big secret that residents here generally would require a personal vehicle be it a car or a motorcycle. 

However, new cars are expensive while motorcycles are limited and considerably more dangerous. A used car is often the way to go for many of us but there are many dangers that come with buying or even selling a used car. 

One of the biggest dangers revolves around vehicle ownership. If the process to transfer vehicle ownership is carried out properly, there shouldn't be any issues there. Unfortunately, the car industry is full of nefarious personnel that are just looking to make a quick buck. 

So what happens when a vehicle's ownership hasn't been transferred properly?

Editors%2 Fimages%2 F1674037674359 Crimes Will Be Linked To Previous Owner(Photo Credit: Unsplash)

There are various potential scenarios that can put both sellers and buyers at risk. We'll start with the sellers. All vehicle owners are required to pay road tax for their vehicles. A RM150 (RM300 if the road tax has expired for more than a month) will be dished out to owners caught in the wrong. The keyword here is owner. If you sell your used car and the vehicle ownership transfer wasn't done properly, this fine will fall on you! 

It gets worse. If the person you sold your car to turns out to be a lawbreaker, you may be investigated for any criminal activities carried out with the car such as robbery or kidnapping.

When you buy a used car, the headache (and heartache) that comes with not having the vehicle ownership officially transferred to you arises in the case of an accident. Insurance policies that cover only the owner of the vehicle would mean that you will be unable to claim damages, leaving you with potential holes in your pocket.

So how do we avoid this?

Well, you can check directly with JPJ to ensure that the middle person or persons that you engaged in the transaction has done their work and transferred ownership accordingly. Alternatively, you can nip the problem in the bud by doing your due diligence and selecting a third-party for the transaction that is both reputable and trustworthy such as Motorist Malaysia.

I want to find the highest selling price for my car within 24 hours!

Read more: Are Seatbelts Really Necessary for Rear Passengers?