Hire Purchase Financing Application Checklist

After making decision and you may need to submit your HP financing application, here is the documents that you must attached together with your application form.

 • Photocopy of your identity card / passport

 • Photocopy of your driving licence

 • Photocopy of your most recent income tax return (J Form)

 • Photocopies of your most recent salary slips/statements

 • Photocopies of your most recent bank statements (If self-employed)

Ownership Transfer and Payment

Follow below procedure:

General JPJ transfer car ownership. (both seller and buyer must be there)

1. Get the forms ready for transfer. You can download the forms from JPJ website. Forms you need are as follow: JPJK3, TM-1, TM-AB (photocopy both buyer/seller IC).
2. After completing, go to JPJ and submit all the forms together with the original Car Registration Card and also new buyer insurance cover note.
3. Pay RM100 (you can buy postal order from JPJ itself).
4. Wait for the transfer name to complete and collect back the transferred ownership of car registration card.

The Payment

Bank Loan:

1. Buyer and seller need to be at the bank with the car registration document in order to apply the loan. If buyer is from outstation, then seller needs to fax over the car registration.
2. Upon approval, the bank will issue an undertaking letter and after that the seller need to transfer the car ownership to the buyer's name.
3. Upon completion, bank will release the fund to the seller.
4. Any additional fees in loan/transfer ownership shall be paid by buyer.

Cash Deal:

Ask the seller to write two receipts stating the date, amount paid, make, model and registration number, along with the names, addresses and signatures of both parties.

Fees and charges:

There are many fees that you might have to pay when taking up a car loan. Many are oblivious to this matter. The fees may include:

Stamp duties: Usually RM10 per agreement.

JPJ registration fee: Either registration of a new plate number or for the transfer of ownership for used cars.

Administration fee: A one-of charge that may go up to a few hundred Ringgit.

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