Hire Purchase (Car Loan) Frequents Ask Questions

How much can I borrow from the banking institution in order to purchase a vehicle?
The margin of financing will depend on your credit standing subject to a maximum of 90% of purchase price or any other lower margin of financing fixed by the banking institution.

What is the minimum deposit required when buy a vehicle?
The minimum deposit is 10% of purchase price. However, a banking institution may fix a higher amount. You may get lower deposit if there is promotion.

Can I keep the vehicle registration card to enable me to renew my road tax upon expiry?
Generally, banking institutions will keep the registration card until the HP financing has been fully settled in order to prevent any inconveniences that may arise due to damage, misplacement or theft of card. As such for the convenience of their hirers, most banking institutions will provide insurance and road tax renewal services to their hirers.

If you have requested the following services from your hire purchase financier, service charges may applied for:

 • Road tax renewal
 • JPJ ownership transfer
 • Issuance of Release Letter
 • Photocopy of Hire Purchase Agreement and Guarantee Agreement
 • Letter of Consent for:

- Interchange engine number
- Interchange registration number
- Duplicate registration card

 • Redemption Statement

Can I modify the monthly repayment amount if I have financial difficulties?
This is subject to your banking institution’s discretion and you are advised to discuss the matter with your banking institution.

When can my banking institution repossess my motor vehicle?
Under a HP agreement, a banking institution can repossess a motor vehicle after the hirer had defaulted two successive instalments or the final instalment.

Do I still have to pay my monthly instalments if my motor vehicle is stolen?
Yes. This is because your liability to pay the monthly instalment does not cease with the loss of your motor vehicle. However, you may claim from the insurance company, the market value of the insured motor vehicle or the sum insured, whichever is lower.
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