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Introducing the end-of-life for vehicles policy

POSTED BY Yamin Vong ON 17 April 2017

Expect another end-of-life for vehicle (ELV) policy to be introduced in Malaysia this year.

It is understood that this policy will be carried out more aggressively than the previous, short-lived attempts.

If the new ELV is as comprehensive as it is understood to be, it might be a winner for all, including the government, which stands to benefit from more sales of new cars though smaller margins of tax.

Malaysia has flirted with the idea of an ELV policy before with the objective of improving road safety by reducing the general age of the car population. In one instance, national car maker Proton accepted decrepit units of its own cars to allow customers to trade-in their vehicles for a newer model.

At another time, the government proposed to scrap cars more than a quarter century old. Obviously, this proposal was dropped once the government realised the inequity of that proposition.

With the benefit of hindsight, it’s understood that the new ELV system will be on a voluntary basis and will also be offered to owners of popular models of foreign brands, not just national brands.

Implemented in tandem with this ELV proposal, there will be mandatory inspections of all motor vehicles above a certain age.

A second provider for motor road worthiness inspection services has already been appointed since last year.

According to sources, to make the road worthiness inspection more user friendly, the government will look positively towards companies with the relevant track record.

It’s understood that to encourage owners to scrap their old cars that are above 25 years old, the government will give a coupon, for example, worth RM4,000, to the registered owner in exchange for the physical car.

Assuming that the owner of the old car is unable to purchase a new vehicle, he or she will drive the old car to an accredited used car dealer and trade it in for cash or a partial payment for a newer, pre-owned car.

The used car dealer will take in the old car with an EVL scrap value of RM4,000 or knock off this value on the price of a second-hand but newer and presumably, safer, car.

In addition to lowering the average age of the vehicle pool in Malaysia, the old cars will be scrapped by accredited treatment facilities to recover recyclable material and to treat engine fluids and heavy metals.

This, is in line with the European Union’s policy regarding waste.

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