KUALA LUMPUR, July 18 — Longer booking times arising from recent changes to hire-purchase laws have dampened vehicle orders, the Malaysia Automotive Association (MAA) said today.

MAA president Datuk Aishah Ahmad said there had been about a 20 per cent drop in orders after Parliament amended the Hire-Purchase Act 1967 last month.

Under the amendments, aimed at protecting consumer rights, buyers only have to pay a maximum of 1 per cent of a vehicle’s total selling price compared with the previous 10 per cent.

But buyers now have to deal directly with banks, where previously dealers handled the entire buying process. This resulted in increased documentation, and longer approval times.

“Our members have indicated that there is some slowdown in terms of order-taking,” Aishah told reporters at the MAA’s office here today. “Maybe because of (buyers’) frustrations.”

The new requirements have also resulted in cash-flow problems for dealers, as buyers are more readily inclined to cancel their bookings in light of the low booking fee, and the fact that 90 per cent of the deposit has to be returned to buyers who change their mind.

The MAA is to meet with the Ministry of Domestic Trade, Cooperatives and Consumerism on Friday to discuss possible further amendments to ease vehicle registration, Aishah added.

“Prior to being tabled in Parliament, the industry was not consulted,” she said. “We were not aware of it . . . When we heard about it, we asked for a meeting.”