Hire Purchase or Loan

There is a lot of difference when you choose to buy something with the help of a loan and when you do it on hire purchase basis. In the former case, the ownership passes to you but in the later case you are just in possession and not a legal owner. It means that a person who has bought a car on hire purchase cannot sell it. Simple enough, he is not an owner of the car and, therefore, he has no such right.

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Popularity: 28% [?]

You want to buy a car so that you can commute to office and other places with ease. But purchasing a car needs high amount of money. So, like many, you too want to purchase a car by financing it through a car loan but are worried about high rate of interests. In that case, low interest car loan can solve your problems.

Check the list below for your references. Make calls to your favorite banks to get the latest rates they might have.

1. Loan date : February 2008
2. Which Bank ublic Bank
3. How many years of loan & Interest rate.: 7 year + 2.43%
4. Loan amount.: 50k

1. Loan date : July 2008
2. Which Bank :Maybank (MBB)
3. How many years of loan & Interest rate.: 2.86% – 7 years / 2.94% 9 years (Both Rates are Corporate rate)
4. Loan amount.: 45k

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Popularity: 17% [?]

Notes: We could expect reduce hire purchase rate to encourage interest.

The automotive industry is in for a challenging period in 2009 as slower economic growth will translate into lower sales volume.

The country’s gross domestic product (GDP) is projected to grow at 3.5% next year.

In line with the slower GDP growth, the total industry volume (TIV) is expected to contract between 10% and 13% in 2009 due to slower consumer spending.

Another factor that could hold back sales next year is financing as the financial and lending institutions will be extra cautious in approving loans due to uncertainties in the global economy.

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Popularity: 4% [?]

Hire purchase (HP) financing is one of the most common ways for people to buy private vehicles. If you take on HP financing, you become the hirer while the financier financing the vehicle is the owner. As the hirer, you will have to pay installments to the financier based on an agreed duration while you will have possession of the vehicle. When all installments are paid up, ownership is then transferred to you, the hirer.

A Hire Purchase agreement must contain the following important information:

• Description of motor vehicle
• Calculation of total sum payable
• Minimum deposit
• Term charges and annual percentage rate
• Late payment charges
• Date on which hiring commences
• Number of installment repayments
• Amount of each installment repayment
• Person to whom repayments are to be made, time and place of repayments
• Address where the motor vehicle is to be kept

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Popularity: 6% [?]