Ministry of Transport, Malaysia yesterday launched the online Interim Ownership Transfer System (STMS) to allow car owners to transfer the ownership of their vehicles temporarily to used car dealers.
The system will prevent car owners from getting fines and summonses, and instalment notices from financial institutions after them selling their cars to used car dealers, said Transport Minister Datuk Seri Kong Cho Ha.
Kong also explained that the fines and summonses issued for cars that were still registered under the owner’s name before being sold to a new buyer had caused many problem in the past.
With the STMS, people who sell their cars through used car dealers will be able to register their vehicles and obtain a receipt as proof that they have transferred the ownership temporarily to the dealer.
If the vehicle is not sold after six months, the used car dealer will be given permanent ownership. This is done after the used car dealer has paid the seller the agreed amount for the car and taken over the seller’s outstanding loan.
Both the seller and the dealer will be authenticated by the system by their MyKad and thumbprint. The vehicle will then be registered under STMS, which is monitored by the Road Transport Department.
“We are not making it mandatory for all used car dealers yet as we are still awaiting feedback from consumers and the dealers,” said Kong.
Kong said the STMS might be extended to used motorcycles.
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