Why Are There TOTAL LOSS Cars Coming Into Our Used Car Portals

Can total loss accident cars be sold in our used car market

We stumbled upon this social media post and thought it would be good to share to used car buyers in Malaysia as we have been seeing many used car scams and even a rise in illegal used car sales. 

In this shared post we see a used car buyer who saw an online used car advertisement and almost bought a ‘Total Loss’ vehicle. Lucky he spent a bit of money and to get a ‘health’ report on the vehicles legal status. 

A total loss car (especially Beyond Economic Repair or better known in the industry as ‘BER’) CAN be sold to a new owner in Malaysia, but ONLY for parts to scrap yards or workshops, not as roadworthy cars.

Now, Actual Total Loss (ATL) cars with chassis damage are meant to be scrapped, but unscrupulous used car dealers might try to sell refurbished ones, which is risky and illegal without proper de-registration and inspections, so buying a used car it is best to check its legality from verified sources like Scrut. If you have not heard of Scrut you can check them on social media and note that the fee paid is worth it for crucial legal checks on a used vehicle in Malaysia.

So what are the ‘types of total loss’?

• Actual Total Loss (ATL): Severe structural damage; meant for scrapping only, says PIAM (Persatuan Insurans Am Malaysia).
• Beyond Economic Repair (BER): Repair cost exceeds market value; often sold for parts or to workshops. 

Next, how are ATL and BER cars sold/disposed in Malaysia?

• To Scrap Yards/Workshops: Insurers auction ATL/BER vehicles to registered workshops or scrap dealers, who value them for metal and usable parts.
• Resale (Risky): Some workshops repair BER cars and sell them, but they can pass Puspakom/JPJ checks, often to unsuspecting buyers. How does this happen? Well, with the use of JPJ runners, which we have been highlighting in past articles its happens. Fact!