{"id":424,"date":"2012-05-24T06:34:04","date_gmt":"2012-05-23T22:34:04","guid":{"rendered":"http:\/\/imoney.my\/?p=424"},"modified":"2016-05-06T10:31:46","modified_gmt":"2016-05-06T02:31:46","slug":"what-is-hire-purchase","status":"publish","type":"post","link":"https:\/\/www.imoney.my\/articles\/what-is-hire-purchase","title":{"rendered":"What Is Hire Purchase?"},"content":{"rendered":"

\"TiMskbcfFBK5yYYAeoBMANMjbf00O0XvsOOIfjiWcZQ\"<\/a><\/p>\n

Hire purchase is one of the most commonly used methods to buy cars in Malaysia. The term \u201chire purchase\u201d is often also referred to as \u201ccar loans\u201d. In Malaysia, when you take out a loan from the bank to purchase a new car, you\u2019re essentially entering into a hire purchase agreement with the bank.<\/p>\n

Hire Purchase Agreement<\/h2>\n

In a hire purchase agreement, you are the user of the car, and are responsible for insuring and maintaining it, but the bank (or lender) remains the legal owner. To put it simply, you are \u201chiring\u201d (think of it as \u201crenting\u201d) the car that is owned by the bank. As the hirer, you will have to pay monthly instalments to the bank based on what was agreed in your hire purchase agreement.<\/p>\n

The instalments will typically include 1) an interest component (what the bank charges for this \u201cloan\u201d) and 2) a principle component (part payment of the total \u201cloan\u201d amount).<\/p>\n

Once all instalments are paid up, the legal ownership of the car is transferred from the bank to you. This means, until you have completely paid off the loan amount agreed in your hire purchase agreement, you do not legally own your car.<\/p>\n

Because of the way the car ownership is structured, if you fail to pay your instalments on time, the bank can repossess your car.<\/p>\n

Want the best hire purchase interest rate in Malaysia? Check out iMoney’s hire purchase comparison table<\/a>!<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Hire purchase is one of the most commonly used methods to buy cars in Malaysia. The term \u201chire purchase\u201d is often also referred to as \u201ccar loans\u201d. In Malaysia, when you take out a loan from the bank to purchase a new car, you\u2019re essentially entering into a hire purchase agreement with the bank. Hire… View Article<\/a><\/p>\n","protected":false},"author":1,"featured_media":3842,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[237,19],"tags":[305],"class_list":["post-424","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-autos","category-car-loan","tag-fb"],"acf":[],"yoast_head":"\nWhat Is Hire Purchase?<\/title>\n<meta name=\"description\" content=\"Car loans for you through hire purchase agreement with a local financial institution. 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