How can I transfer, sell or part possession of the motor vehicle to a third party even though the motor vehicle is still financed under my name?

It is illegal to transfer, sell or part possession of the motor vehicle without the permission of your banking institution, who is the legal owner.

If you do so, you may incur substantial losses and penalties as you are still fully responsible for the liability and losses incurred.

Ensure that you have fully settled your hire purchase (HP) debt before you sell your motor vehicle.

If you wish to use the proceeds of the sale of your motor vehicle to pay the outstanding balance of your hire purchase (HP) financing, get the consent of your banking institution to sell the motor vehicle and arrange for the proceeds of the sale to be paid directly to the banking institution to settle your outstanding balance.

If there is any shortfall, you will be responsible for repaying the balance.

If there is a surplus, it will be refunded to you by the banking institution.

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Reprinted with permission from BankingInfo (A Consumer Education Programme by Bank Negara Malaysia)

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Knowledge Base ID :   1326
Last Reviewed :   May 22, 2014
Source :   BankingInfo
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