Amendments to Vehicle Registration Affects Installment Based Sales

Recent amendments to vehicle registration rules in the Maldives have prompted some businesses to halt instalment-based motorcycle sales. The regulations, introduced by the Ministry of Transport in November last year, now require vehicles to be registered under the company’s name solely for operational use.

Previously, motorcycles sold under instalment plans were registered with a company’s commercial ‘C’ licence plate until payments were completed, at which point ownership was transferred to the buyer under a private ‘P’ plate. However, the revised rules mandate that vehicles must be registered directly in the buyer’s name, posing challenges for businesses that rely on instalment sales.

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Sheesha, a company with decades of experience in the motorcycle sector, has temporarily paused its instalment services to align its policies with the updated requirements. This decision reflects a broader concern among businesses regarding the operational and legal complexities introduced by the changes.

The new system has raised apprehension among sellers about the risks associated with payment defaults. Registering motorcycles in the buyer’s name from the outset could complicate repossession processes, requiring legal action in cases where payments are not fulfilled.

Stakeholders have also expressed frustration about the lack of consultation during the decision-making process, citing the significant impact of such changes on their operations. Businesses are now working to adapt to the new regulatory landscape, and once compliance measures are established, they plan to reintroduce instalment options.