Practical tips when buying a vehicle
Know your legal rights under a hire purchase agreement
Hire purchase loans in Malaysia are governed by the Hire Purchase Act 1967. Click on the link to learn more about your legal rights under a hire purchase agreement. Some terms worth highlighting are as follows:
- You don’t legally own your vehicle until you have made all your repayments on your loan.
- A bank can only repossess your vehicle if you fail to make two successive repayments on your loan and the repossession needs to be done under specific guidelines.
- You can’t sell your car without first settling the hire purchase arrangement with the bank and the new purchaser.