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View Full Version : Used car dealers to face new regulations



August 4th, 2007, 22:39
The Consumer Protection Board will start regulating the sale of used cars from Sept 8, 2007 by having the dealers stick labels telling the history of the vehicle for sale. The measure is an attempt to protect consumers following countless complaints from buyers with the agency that they had encountered crooked car dealers when purchasing used cars.

''Complaints on used car sales cheats are the third highest in number after those related to second-hand motorcycle purchases and housing problems. That's why we need to take certain action on it,'' Rasamee Vistavet, the board's secretary-general told a gathering of used car dealers at a seminar yesterday.

The complaints filed with the board involved deception in various forms, such as hiding the defects of a vehicle, lying about the year in which it was manufactured, forged registration papers, and problems involving transfer of ownership.

To better protect consumers, the board on April 26 issued an announcement regulating used cars as label-controlled products. The announcement will take effect on Sept 8, 120 days after being published in the Royal Gazette.

Under the new rule, the label must contain 21 details, including the vehicle registration date, registration number, chassis number, engine number, vehicle brand, engine brand, colour, type of vehicle, fuel type, the latest ownership, product classification (e.g. used car), manufacturer, distributor, location of manufacturer or distributor, engine size, directions for use, warning, manufacturing date, and price.

The labels must be placed on the front windshields of the vehicles on sale, with the font size not smaller than 1 cm.

According to Ms Rasamee, those violating the rules, such as dealers who intentionally give false information in the label, will be subject to a fine of up to 50,000 baht, or a maximum of six-month jail.

The regulation will be simultaneously implemented along with another new announcement on receipt-control for used car sales. This announcement requires dealers to provide their customers a receipt carrying all the important details of the label.

Together with the receipt, the dealers must hand over the vehicle registration book with complete details on the car history, including modification records.

The receipt-control announcement is expected to be endorsed very soon.

Nirote Charoenprakob, the board's deputy secretary-general, said the new regulations should give buyers better protection when they are about to make a purchase of a used car.

Some of the dealers attending the seminar argued that the regulations seemed to protect only the consumers while ignoring the plight of used car tents, some of which were also cheated by people from whom they purchased the used cars.

''Often we too are cheated and when that happens I have no idea who we must turn to for help,'' said the dealer.

Pattanadej Arsa-sapakit, an automobile expert, said the newly enforced regulations will not harm the dealers as long as they run their businesses with sincerity and honesty.

He understood there would be some inconveniences at the beginning, but after the dust has settled, they should help improve the credibility of dealers as well, on top of promoting better trade.

August 4th, 2007, 23:17
Stage 2: enforce the regulations