With Malaysia’s upcoming Lemon Law protections and nationwide e-Invoicing, buyers and sellers can expect a more transparent and accountable market in 2026.
The used car industry has long operated with minimal consumer protection and fragmented documentation. That’s about to change. The government’s new measures in Belanjawan 2026 Malaysia aim to build buyer confidence, enhance trust, and modernise how second-hand vehicles are sold and transferred.
Lemon Law: A Game-Changer for Buyers
One of the most impactful announcements is the government’s plan to amend the Consumer Protection Act to introduce Lemon Law provisions.
This will allow buyers of both new and used cars to seek legal recourse when their vehicles face persistent or repeated defects soon after purchase. Dealers will be required to repair, replace, or refund affected vehicles if they fail to meet quality standards.
This is a significant shift for the used car industry, where buyers often face expensive repair bills with little legal protection. The Lemon Law is expected to raise accountability among sellers, particularly dealers and reconditioned car importers.
Nationwide e-Invoicing to Improve Transparency
In line with the government’s tax reform strategy, e-Invoicing will be fully rolled out in 2026. This will standardise how transactions are recorded, making it harder to undervalue vehicles or manipulate sales records.
For buyers, this means more reliable documentation and better price transparency. For businesses, it may mean tightening compliance and reporting standards.
Boosting Consumer Confidence
Together, Lemon Law and e-Invoicing will professionalize the used car ecosystem. Dealers who prioritise transparency and quality may gain a competitive edge, while shady operators will find it harder to operate.
This push toward higher standards is expected to encourage more Malaysians to buy pre-owned cars with confidence, which could also increase transaction volumes in the mid-range segment. We’re excited for this big change brought about by Belanjawan 2026.
