Are you considering purchasing a big-ticket item in Malaysia but don`t want to pay for it all upfront? A hire purchase agreement may be the solution for you.
A hire purchase agreement is a type of financing arrangement where the buyer pays for the item in monthly installments while being allowed to use it. Once all payments are made, ownership of the item is transferred to the buyer.
To help you get started, we`ve put together a sample hire purchase agreement for a car purchase in Malaysia:
PARTIES
[Name of Seller], a company incorporated in Malaysia, with its registered office at [Address], represented by [Name], hereinafter referred to as the « Seller, »
AND
[Name of Buyer], a [Malaysian/non-Malaysian] individual, with its registered office at [Address], represented by [Name], hereinafter referred to as the « Buyer. »
AGREEMENT
The Seller agrees to sell the car described below to the Buyer, and the Buyer agrees to purchase the car from the Seller on hire purchase terms.
VEHICLE DETAILS
Make: [Make]
Model: [Model]
Year: [Year]
Registration Number: [Registration Number]
Chassis Number: [Chassis Number]
Engine Number: [Engine Number]
PRICE AND PAYMENT TERMS
The total price of the car is [Price] Malaysian Ringgit (MYR). The Buyer shall make an initial payment of [Initial Payment] MYR upon signing this hire purchase agreement. The remaining balance shall be paid in [Number of Installments] equal monthly installments of [Monthly Installment Amount] MYR each. The first installment shall be due on [Due Date].
The Buyer shall make all payments to the Seller or to any bank or financial institution as directed by the Seller. The Buyer shall pay interest on the outstanding balance at the rate of [Interest Rate] per annum on a reducing balance basis.
TITLE AND OWNERSHIP
The Seller shall retain the title and ownership of the car until all payments have been made by the Buyer. Once all payments have been made, the Seller shall transfer the ownership of the car to the Buyer.
DEFAULTS AND TERMINATION
If the Buyer defaults on any payment or breaches any term of this hire purchase agreement, the Seller shall have the right to repossess the car without further notice. The Seller shall also have the right to terminate this hire purchase agreement and claim damages for any losses suffered as a result of the Buyer`s default or breach.
GOVERNING LAW AND JURISDICTION
This hire purchase agreement shall be governed by and construed in accordance with the laws of Malaysia. Any disputes arising out of or in connection with this hire purchase agreement shall be referred to the courts of Malaysia.
CONCLUSION
A hire purchase agreement can be a useful way to purchase a big-ticket item in Malaysia without paying for it all upfront. However, it`s important to carefully read and understand the terms of the agreement before signing it. We hope this sample hire purchase agreement for a car purchase in Malaysia serves as a helpful guide for your own hire purchase agreement.