Regulation Changes Halt Motorcycle Installment Sales in Maldives

A recent regulatory change in the Maldives has forced motorcycle dealers to halt installment sales, leading to a significant decline in sales figures. The new regulations require that motorcycles sold on installment must be registered in the buyer's name, even if the vehicle is purchased through an installment plan. This change has resulted in the loss of "company" registration plates, replacing them with "private" plates, which is a key issue for sellers.

One of the leading sellers, Sheesha, confirmed that they stopped offering installment schemes about a month ago. This has caused a 50% reduction in sales, with an average loss of 20 motorcycles sold per month under the installment option.

Similarly, Expert Motor Services reported a downturn in sales and has requested a meeting with the Ministry of Transport and Civil Aviation to discuss the matter. The company also hopes to find alternative solutions to continue operations if installment schemes remain unfeasible.
The primary concern for companies is the difficulty of reclaiming vehicles if buyers default on payments. Under the new regulations, the motorcycle is registered in the buyer's name, making it harder for sellers to recover vehicles in case of non-payment. This shift is expected to worsen the financial challenges faced by dealerships, who are already dealing with lengthy court processes for debt recovery.