Introduction
When purchasing a vehicle through a hire-purchase scheme, transferring ownership is mandatory to comply with JPJ regulations and ensure insurance coverage is valid. Without proper procedures, the new owner may face issues during roadtax renewal, insurance claims, or JPJ inspections.
Furthermore, the ownership transfer process involves multiple parties, including the seller, bank (if there is an outstanding loan), JPJ, and the insurance company. Understanding the procedure, required documents, and proper steps helps ensure a smooth transaction without complications.
Required Documents & Basic Procedure
- Old & New Owner Documents – copies of IC, vehicle grant, and hire-purchase agreement.
- Bank Release Letter – required if the vehicle is still under loan.
- Fees & Taxes – payment of transfer fees and relevant taxes.
- JPJ Update – official JPJ ownership transfer process including document verification.
- Insurance Update – new owner must update insurance via endorsement or new policy to maintain valid coverage.
Key Steps & Tips
- Check outstanding vehicle loan before starting the process.
- Prepare all documents for both old and new owners.
- Contact the insurance company to update the policy promptly.
- Ensure all JPJ transfer fees and taxes are settled.
Conclusion
Transferring ownership of a hire-purchase vehicle is more than a formal procedure—it’s essential for valid insurance and roadtax. By preparing complete documents, settling fees, and updating both JPJ and insurance, the new owner avoids future issues and enjoys full rights over the vehicle.
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