Hire Purchase Act 1967 (Amendment 2010)
Selling Used Car
- The HPI (Hire-Purchase Inspection), also known as the B7 inspection, took
effect on June 15, 2011 as part of amendments to the Hire-Purchase Act 1967. The amended Act makes it
compulsory for owners of used vehicles to get their vehicles to undergo a comprehensive 18-point inspection
before sellers can enter into a hire-purchase agreement.
- Used vehicle sellers will have to pay a RM90 inspection fee to Puspakom
before the sale can be made, in line with the implementation of Hire Purchase Act (Amendment 2010) on June 15,
- Puspakom will issue a certificate to indicate that the car can be used for
ownership transfer and hire purchase agreement with banks.
- Cars sold to second-hand dealers must be temporarily transferred to the
dealers' name in a move to protect the interest of all parties involved in the transaction.
- Dealers and sellers can choose to cancel the transaction immediately if they
discover a problem with the car.
- Dealer is made the temporary owner of the car. Thus, the car seller and buyer
need not worry about being punished for offences that they did not commit.
- Temporary ownership would not be recorded in the vehicle's registration
- Car dealer is given six months to find new buyers. If they fail to sell the
cars by then, the car ownership needs to be transferred permanently to the used-car company,
- Sellers may request a 10% deposit from buyers as required under the Hire
- Car owners, not car dealers, will bear the costs of Puspakom's Transfer of
Ownership (B5) and Hire-Purchase (B7) inspections - The Federation of Motor and Credit Companies Associations
of Malaysia (FMCCAM)
- To protect the interest of consumers. Only those registered and given permits
by the ministry will be appointed vehicle repossessors.
- Repossession can only be done from 9am to 9pm daily. No force must be used in
- If the vehicle is in the garage, they can't enter the house compound except
with a court order and can be reported to police for flouting it.
Used motorcycles were exempted from inspection due to the small number and amount