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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, 2011.
  • 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 card.
  • 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 Purchase Act.
  • 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 the process.
  • 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 involved.