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SCRAPPING POLICY- your guide to scraping your car for a NEW PROTON



1. Part of the Second financial stimulus announced by the Prime Minister on 10 March 2009 was to stimulate the automotive car sales with an additional budget of RM200million to the automotive development fund.

2. Within the RM200million budget, a discount of RM5,000 will be given to car owners, who trade in their cars of any make, which are at least 10 years old, for the purchase of new cars (scraping policy) (para 54- Minister of Finance).

3. Pursuant to the announcement, Proton came out with A standard operating procedure on 11 March 2009 BUT PERODUA had yet to start. The qualifying criteria for scrapping, in my personal opinion is an unnecessary red-tape that will defeat the sole purpose and objective to simulate the automotive sales and thus waste extensively part of the RM200million budget allocated for the automotive development fund.

4. However, for the public who are interested to trade-in and scrapped their 10 year old vehicle to buy a new Proton, the followings are guidelines and Standard Operating Procedures intended to assist and educate the interested party to AVOID any UNNECESSARY REJECTION.

When a customer brought along their 10 years old vehicle for application to scrap, the customer must bring along the following documens:

a) Photocopy of vehicle owner’s IC/Passport – must sight the original
b) Photocopy of buyer’s IC/Passport – (if different) must sight the original
c) Photocopy of registration card (must sight the original
d) Original Puspakom Identity Inspection – B2 (valid for 1 month from the date of inspection) (Puspakom inspection will only cost RM25)
e) Original JPJ search result
f) Original Approval Permit (AP)- for imported/CBU vehicle

5. Ownership of the 10 year old vehicle (to scrap) must be 6 months and above. Thus, those who owned the 10 year old car for less than 6 months will not be able to scrap those car. More often, the age bracket of the owner (of the 10 year old car) is between 45 or 50 years old, thus although they can scrapped their car, they may only qualify for loan (to buy a new Proton car) with a maximum duration of 3-5 years that bear a higher monthly repayment (compare to the monthly repayment for 9 years loan duration). They may not be able to afford the monthly repayment to buy a new Proton (that is if the loan was approved).

6. The car to be scrap must be 10 years and above from the manufacturing date.

7. Rightful owner must sign Road Transport Department (JPJ) form JPJK1C to cancel the registration of the said vehicle under Paragraph 13(2) of the Road Transport Department Act 1952

8. Sales representative must inspect the said Vehicle condition before accepting the car under the scrapping policy. The car to be scrapped MUST PRINCIPALLY COMPLY TO (i) FUNCTIONALITY CHECK
If the two (2) pre-condition chck as outlined below are fulfilled, a redemption Voucher RM5,000 will be issued irrespective of the market value for the car. If customer agrees to participate in this scheme, sales representative must advice the customer on the requirement for eligibility of the Scheme and the required documents to be submitted.


(a) Ignition system is active, engine is able to turn on and off without the need for external batteries

(b) Drivability, car should be able to be driven forward or in reverse for at least 20 metres.

(c) Transmission Gear is functional and shifting of all gears are possible

(d) Pedals. Brake, Clutch and accelerator is functional

(e) Hand brake is available and functional

(f) Drivability not affected by body entanglement, body steering, or suspension damage


(a) DOORS. All doors are in-place

(b) HOOD. Available and in place

(c) DASHBOARD. Available and in place

(d) Seat. Are available and in place

(e) INTERIOR PEDALS. Are available and in place

(f) BODY. Are in place and attached

(g) EXHAUST PIPE. Are available, intact and in place

(h) HEAD LIGHTS. 1 headlight is available and in place

(i) TAIL LIGHT. 1 tail light is available and in place

(j) BREAK LIGHT. 1 brake light is available and in place

(k) WINDOWS. All windows are available and in place

(l) HAND BRAKE. Available and in place

11. The customer may inspect the vehicle and conduct a JPJ search before or after approaching any Proton Showroom. However, if the vehicle has not been inspected, once the above 2 pre-condition are complied, then the vehicle MUST be inspected and approved at Puspakom and pass the JPJ search before the application can be submitted. The Puspakom inspection will cost the buyer a minimal RM25 per inspection.

12. Once the above two pre-condition are complied, buyer need to provide the following documents:

(a) Original Registration Card (Hand-over to Proton Edar Sdn Bhd)
(b) Original JPJ K3 Form (Ownership-claim form duly signed to Proton Edar Sdn Bhd)
(c) Original JPJ K1C form (Hand-over to Proton Edar Sdn Bhd)
(d) Hand-over the vehicle and car key (to Proton Edar Sdn Bhd)

13. Proton Edar will then conduct PDRM inspection check, insolvency check and custom check for the RM5,000 discount voucher approval to scrap the vehicle.

14. Once the RM5,000 voucher is issued to scrap the car, buyer has a maximum 3 MONTH to redeemed the voucher.

15. All vehicle surrendered cannot be claimed back by customer and will be de-register from JPJ.
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