car hire purchase agreement sample malaysia

In another act of U-turn, the Ministry of Finance has just announced that there will be no additional interest on hire-purchase (HP) loans for those who took up the 6-month moratorium. This overrules the earlier statement by Bank Negara Malaysia (BNM) that the 6-month moratorium will incur interest charges. Borrowers who took up the 6-month moratorium will continue to pay the same monthly installment as before as stated in their HP agreement with their respective banks. The 6-month moratorium is

Adrian Chia

May 6, 2020

It’s time to sell your car. You’ve already figured out how to get the highest price and how to clean the interior, but how do you sell your car without going through a used car dealer? Assuming that you’ve somehow managed to find for a buyer that’s willing to buy your old car, there are some steps to follow before you can sell off your old car. Also Read: Selling your car soon? Here's how to ensure you get the highest price If it’s a cash sale and there’s no outstanding loan, it’s pretty straigh

Eric

Apr 6, 2021

Renault has been named Malaysia Car Subscription Company of the Year at the 2020 Frost & Sullivan Asia Pacific Best Practices Awards for its Renault Subscription programme, a year after the programme celebrates its first anniversary. Launched in August last year, the programme was designed to offer an alternative to vehicle ownership beyond the traditional hire-purchase model as well as car sharing and rental options available. “We are delighted to have received this prestigious accolade from Fr

Sanjay

Aug 24, 2020

The following is still a developing news, we will update it when clearer official announcements are made. We were tipped off by our friends at Careta.my that banks might begin imposing interest charges on delayed/outstanding car loan repayments of borrowers who took up the 6-month moratorium. A statement released by Bank Negara Malaysia (BNM) earlier today said “…banking institutions are in the process of formalising agreements which reflect the revised payment terms with borrowers/customers wit

Hans

Apr 30, 2020

The actual cost of owning a car is a lot higher than just your monthly instalments, and we’re not talking about insurance or maintenance, itself already a big chunk of a car’s total ownership cost. Beyond maintenance, depreciation is the biggest ‘cost’ for a car owner. However, very few see it that way because it’s not something that you feel until you have to sell your car. It’s like losing money on stocks; it’s paper loss until you actually sell it, which you have to at some point. Remember th

Hans

Sep 12, 2020

In case you missed it, UMW Toyota (UMWT) will be launching the Toyota Corolla Cross with an 8D audio experience. Now they’ve uploaded a sample video of the 8D audio experience to give us a taste of how the launch will be like. Also read: UMWT's Toyota Corolla Cross launch will be streamed in 8D audio, but what is it? The Toyota Corolla Cross launch in 8D audio will be the first car launch in Malaysia to be recorded in a binaural recording. 8D audio, simply described, is surround sound on steroid

Jerrica

Mar 24, 2021

The Proton X70 was first launched in December 2018, as a fully imported (CBU) model from China. Slightly more than one year later, the locally-assembled (CKD) model was launched in February 2020, with a new transmission but hardly any change in price. The range topping Premium X model is priced at RM 122,800. Barely two years on the market, it’s still too early to gauge the resale value of a Proton X70. Yes there are quite a number of units listed on used car classifieds, but it’s still too smal

Hans

Aug 7, 2020

Only 10 percent of hire purchase borrowers of have opted out of the 6-month moratorium given by Bank Negara, according to data by RHB Investment Bank. In its latest bi-weekly newsletter dated 29-April, the investment bank downgraded its buy/sell call for CIMB, from Neutral to Sell. Part of the reason, according to the investment bank’s analysts is “…possibility of provisions for a macro overlay on expected credit loss and modification losses on the present value of deferred cash flows due to the

Hans

May 1, 2020

Geely, the parent company of Proton, has recently announced an agreement with WeChat’s Tencent. The automotive and tech giants will work together in the digitalization field, intelligent cockpits, autonomous drive, and low carbon development. Both parties will work together in developing the next-generation intelligent vehicle cockpits by integrating both Geely and Tencent ecosystems. As Tencent is more than just WeChat, we can imagine that a unified Geely and WeChat user interface could do wond

CY Foong

Jan 19, 2021

Over the past two weeks, the banking sector lost not just money, but a lot of goodwill from its customers. The former was unavoidable due to Covid-19, the latter was all their own doing. We are talking about how banks managed the communications to their customers regarding the 6-month moratorium for bank loans. Do banks not have any PR strategy at all? Hands up if you had trouble understanding Bank Negara’s first announcement on 25-March, which said: “It is important to note that the interest/pr

Hans

May 9, 2020

5 dealership bodies have appealed to the Ministry of Finance with a memorandum to help ensure the survival of the automotive industry in light of the country’s fight against the coronavirus. According to our buddies at Careta, the memorandum dated on the 30th of March 2020 was represented by 5 bodies made up of 4 dealer associations of popular car brands in Malaysia and 1 second hand car sales representative. To ensure the continued business prospects of the association and the safety of their e

Jerrica

Apr 6, 2020

It turns out that it wasn’t just used car sales that saw an increase throughout the past few months, used car dealers in Johor Bahru are reporting an increase in car owners trying to sell their vehicles after the Movement Control Order (MCO) ended in June. One second-hand car shop manager Chang Keng Keong told The Star that there has been a 30 percent increase in the number of people who came to his shop enquiring for information about the disposal of their cars. This was especially apparent in

Jerrica

Nov 25, 2020

Prime Minister Tan Sri Muhyiddin Yassin has announced a moratorium extension and targeted bank assistance that focuses on those in need. In yesterday’s address, he said the extension and aid serves to benefit three million individuals and small and medium enterprises (SMEs). Here are the details of the targeted moratorium and bank assistance: Individuals who lost their jobs in 2020 and still haven’t got a new job will be offered the moratorium for another three months (up to Dec 31). After the t

Sanjay

Jul 30, 2020

BMW Credit Malaysia Sdn. Bhd., a vehicle financing subsidiary of BMW Group Malaysia, is now offering customized solutions for customers affected by the Covid-19’s Movement Control Order (MCO). As BMW Credit Malaysia’s financing options are far more varied than a bank’s traditional hire purchase, the solutions available will vary from one customer to another, depending on their individual contract with the company. Customers who wish to apply for greater flexibility with regards to month repaymen

Hans

Mar 29, 2020

You are not the only one who think that cars are getting a little bit too expensive. Malaysians have long complained about high car prices due to our lopsided tax structure but actually, this is a question asked by consumers from all over the world. Data from USA’s Edmunds.com show that the average transaction price for a new car has gone up from USD 23,900 in year 2008 to almost USD 39,000 in 2019, the last available pre-pandemic level data. This flies against conventional logic. You would thin

Hans

Jan 20, 2021

Proton’s commerce company, Proton Commerce Sdn Bhd (PCSB), has a new campaign to help fresh graduates purchase their first cars. Under the campaign, fresh grads can purchase a Proton with low Hire Purchase (HP) loan rates. The Fresh Graduate Campaign is designed to help address one of the key mobility issues graduates face when buying their first cars. Many graduates tend to get rejected when applying for an HP loan as they often don’t have proof of income for 3 months. This is a common requirem

Jerrica

Aug 13, 2020

After Nissan and Subaru announced their online showroom program to adapt with the current extended Movement Control Order (MCO), it’s time for UMW Toyota Motor to follow similar business module. Now you can view and purchase your dream Toyota model with a dedicated online showroom page on their website. The way it works is similar too, just fill and submit the online form with the relevant information, and a dedicated Toyota’s Sales Advisor will be in touch with you as soon as possible. Also, To

Zamil Syaheer

Apr 14, 2020

The 1951 Nash Rambler is on display at Publika (Ends Sept 16), in KL. If you are in KL, then you should seize the last chance to the Hari Malaysia and Publika Art Show to see rare national artefacts! The Hari Malaysia exhibition is a collaboration between Publika and the National Archives of Malaysia. Among all, the 1951 Nash Rambler is particularly eye-catching. The car exhibited was used by Tunku Abdul Rahman to announce the country’s independence in Melaka on Feb 20, 1956. The story behind th

Tasia

Sep 16, 2019

Indonesia is taking its next step into a sustainable future as the country’s Financial Services Authority (OJK) has announced that they want to make getting a loan to purchase an electric vehicle (EV) easier. OJK said in a statement that the new development is the next step in the government’s 2019 regulation aimed at accelerating the development of domestic vehicle industries. This will see the easing of rules on credit assessments and risk calculations for purchase loans of EVs. This means tha

Jerrica

Sep 7, 2020

Results are in for the annual Japan Car of the Year awards and the winner is the Toyota RAV4 with 436 votes, beating out the Mazda 3 (328 votes) and BMW 3 Series (290 votes). The new Toyota RAV4 is still not made available in Malaysia, although we are expecting the SUV to finally make its return into the C-segment SUV market in 2020. According to sources familiar with the matter, the Toyota RAV4 will be introduced in this region next year, with Thailand, Malaysia and Indonesia on the list. Sourc

Jerrica

Dec 11, 2019

UMW Toyota Motor Sdn Bhd announces special term financing for graduates to get a brand new Toyota Vios, Yaris and Avanza in collaboration with Maybank Islamic Berhad. The Murabahah Vehicle Term Financing-i (MVTF-i), in accordance with the Murabahah principles, will provide an additional financing option to the graduates besides the Islamic Hire-Purchase (HP) financing in accordance with Al Ijarah Thumma Al-Bai (AITAB). This financing package is only available in Peninsular Malaysia. Murabahah fi

Brian

Jun 10, 2020

Lexus is a brand that's about pursuing perfection but with Lexus Malaysia’s Next Step financial plan, you can afford to own a brand-new Lexus UX from as low as RM 1,938 a month. The Lexus Next Step is an innovative and affordable customisable financial solution by Lexus Capital Services. Under this initiative, customers can enjoy slightly lower monthly installments compared to standard hire purchase loans. As such, purchases made through the Lexus Next Step plan also includes the standard five-y

CY Foong

Jan 13, 2021

Looking to purchase your dream Nissan but can’t do so thanks to the extended Movement Control Order (MCO)? Now you can do so online as Edaran Tan Chong Motor (ETCM) has introduced its virtual showroom to cater to consumers' inquiries relating to vehicle purchases. All you need to do is visit their website and submit an online form or request for vehicle booking arrangements, which will direct you to their dedicated Nissan sales representative within 24 hours. If you fancy a test drive right at y

Zamil Syaheer

Apr 13, 2020

Proton’s management have told its investment bank partners that the company will be launching a new Geely-based model in 2021, according the latest investor’s newsletter by RHB Research. The research house didn’t mention any specifics on which Geely model that Proton’s management was referring to. However back in 2018, Geely Automobile Holdings, the parent company of Zhejiang Geely Holding Group, which owns half of Proton, signed an agreement to license three Geely models to Proton for CNY 1,344

Hans

Dec 7, 2020

The Kedah state government’s fleet of 23 new cars been the talk of town as netizens called out the government over the use of state money just to purchase new cars for the executive committee’s (Exco) use. The Menteri Besar (MB) of Kedah has spoken out about the issue and stated that the party will be filing a defamation and slander lawsuit against several individuals. Menteri Besar Muhammad Sanusi Md Nor explained that the cars were purchased for the use of state government department staff and

Jerrica

Nov 26, 2020

Mitsubishi Motors Malaysia (MMM) kicks off the Merdeka month with some special deals so interested buyers can enjoy more savings on top of the special SST exemption prices. Interested buyers of the Mitsubishi ASX can opt to trade-in their current cars to get an RM 8,888 top-up support from MMM’s authorised dealers. MMM will also throw in a 5-year free maintenance and 5-year warranty with unlimited mileage when you purchase the B-segment SUV. The Mitsubishi ASX 4WD goes at RM 125,182 while the AS

Jerrica

Aug 14, 2020

Sime Darby Auto ConneXion (SDAC) is offering up some awesome ang pao money when you purchase a Ford Ranger during their Chinese New Year promotion. Between 6 January 2020 to 31st January 2020, SDAC is offering all purchases of the Ford Ranger Wildtrak and Ford Ranger Raptor purchased during this time period a free 2-year maintenance or up to 40,000 km warranty. Not only that, SDAC will also hand out a RM 2,000 red packet for every purchase along with a Ford Performance Golf Umbrella. SDAC is als

Jerrica

Jan 6, 2020

Proton Commerce Sdn Bhd (PCSB), Proton’s in-house automotive financier, has stated that they are expecting a jump in the Hire Purchase (HP) market for cars during the final quarter of 2020. The financier made the prediction thanks to 2 factors, the soon to launch Proton X50 and the Penjana stimulus package. According to PCSB, the HP industry has been experiencing growth of 1.0 percent to 2.0 percent between FY2017 to FY2019. The growth is broadly in-line with Total Industry Volume (TIV) of the M

Jerrica

Sep 30, 2020

In response to the Movement Control Order, Volkswagen Passenger Cars Malaysia (VPCM) has quickly launched an online showroom to offer an alternative way for Malaysians to shop for their VW cars online. Interested customers who have postponed their VW purchases due to the MCO can still make their pick on the Volkswagen eShowroom as all VW models currently on sale are available on the online platform. The eShowroom also has a set of special online deals to offer any who purchase a car via the onli

Jerrica

Apr 1, 2020

“The interest is calculated based on the principal sum and not the remaining balance, that’s crazy!” That was the conversation I had a car company executive who has just been transferred from Europe to Malaysia. The topic of increasingly long loan tenures for auto loans is also becoming a concern in the US but how long is too long for them? 7-year tenure auto loans now make up 20 percent of total US car loans – more than twice as many compared to 10 years ago. To many financial experts in the US

Hans

Jul 17, 2020