Hire Purchase Act (For Car)

[ah_huats]

With reference to "The Sunday Times" dated September 23 2007, page 27, titled " What to consider before you buy a car"

 

It mention that for CAR price less then $55 000 (Excluding COE) is governed by the Hire Purchase Act. And for the Hire Purchase car loan scheme, you are required to pay all principal and interest that would have accrued over the entire loan period. However, in the event you decide to repay the outstanding loan before the loan period ends, you will receive a rebate on the interest.

 

So Is there any equivalent act for Motorbikes

[civicblade]

Same for motorbikes.

[jia_yvon]

dun think so. coz the car loan is usually done from finiance com or bank, direct loan.

 

while bike is loan under the motordiam.. n i dun think there is cash rebate for that..

 

car's rebate is bcoz u took a high interest rate, n the bank gif u a 30% out of total interest.. but u r tied up with them.. within 3 yrs if u wan fullsettlement ur car, u have to return the cashrebate back to them.. so wats the point..

[contrarian]

The Hire Purchase Act also applies to motorcycles, as motor vehicles below $55,000.

 

Before 2004, a calculation method was applied under the Hire Purchase Act (commonly called the Rule of 78). All calculations on early completion and rebate of interest were calculated according to this rule.

 

The law was amended in 2004 to allow the parties to set the terms among themselves, with disclosure to be set out in the Second Schedule.

 

If entered after the change in 2004, your HP agreement will have a schedule that shows the calculations for early redemption.

[Demon]

It mention that for CAR price less then $55 000 (Excluding COE) is governed by the Hire Purchase Act. And for the Hire Purchase car loan scheme, you are required to pay all principal and interest that would have accrued over the entire loan period. However, in the event you decide to repay the outstanding loan before the loan period ends, you will receive a rebate on the interest.

 

dun think so. coz the car loan is usually done from finiance com or bank, direct loan.

 

while bike is loan under the motordiam.. n i dun think there is cash rebate for that..

 

car's rebate is bcoz u took a high interest rate, n the bank gif u a 30% out of total interest.. but u r tied up with them.. within 3 yrs if u wan fullsettlement ur car, u have to return the cashrebate back to them.. so wats the point..

 

Brudder jia_yvon, you are on different channel.

Not talking about cash rebate. ah_huats is asking if he settles the outstanding installments before the loan tenure, will he get a rebate on the interest on a pro-rata basis for that period that was not used.

[Guest limpeiwah]

no cos under 55000 so boh pian

[ah_huats]

no cos under 55000 so boh pian

 

But from what i read, under 55000 then is covered

[contrarian]

But from what i read, under 55000 then is covered

 

As I said earlier, it is covered under the HP Act.