Hire Purchase FAQs
How much can I
borrow from the banking institution?
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?
The minimum deposit is 10% of purchase price. However, a banking institution
may fix a higher amount.
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
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.