Hire Purchase Case Study

1.0 INTRODUCTION
Hire purchase agreement or contract is an agreement of buying where the goods or assets are let out on hire by the seller or finance company to the user of goods or assets which is hire purchase customer (Hirer). The hirer payments at consistent intervals in the form of consideration and gets the proprietorship of the benefit after paying the last instalment.
Hire purchase is a contract between two parties where a buyer decides to pay for goods in parts. The hire purchase agreement was first started in the United Kingdom for circumstances where the buyer could not afford to pay the required price for an item as a lump sum but could afford to pay at regular intermissions small amounts.
The broker asks for a sum equal to the

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

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 possessors. 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