Vehicle Hire Purchase

Hire purchase credit is one form of credit provision services which involves 3 concerned parties, i.e. hire-purchaser or customer, dealer and hire purchase credit provider. This kind of credit provision service commences when the dealer and hire-purchaser agree to sell/purchase the products via hire purchasing system. Once the hire purchaser applies for hire purchase credit from service provider, the hire purchase credit provider will then examine the qualification of hire purchaser for further credit approval purpose. In case of approval, the customer will enter into hire purchase contract with hire purchase service provider. The hire purchase contract will indicate the amount of down payment and installment, as well as process of installment payment according to the term set out in the contract. After the execution of the hire purchase contract, the hire purchase credit provider will pay for the purchased items to the dealer in order for the dealer to deliver and transfer ownership over the assets to the hire purchase credit provider. The hire purchaser, after making down payment and complying with requirements of the hire purchase contract, will then be able to possess and utilize such assets over the hire purchase contract period and be responsible for the maintenance of the assets. Once the installment payments are fully made to the hire purchase service provider according to the contract, the ownership over the assets will be transferred to the hire purchaser.

The Company offers hire purchase credit service to customers on various types of automobile from various makers, both brand-new and used, including personal car and commercial car, e.g. pickup truck, van, truck and taxi, etc. These cars are manufactured by various makers such as ISUZU, TOYOTA, MITSUBISHI, NISSAN, MAZDA, HINO, FORD and MERCEDEZ BENZ. Primarily, the Company focuses on providing hire purchase credit to individual customers, i.e. employee, worker and entrepreneur, who have good track records and financial status and serviceability.

Factors to be considered in determining credit line, down payment and term of installment include customer’s financial status and type, maker, model and price of the automobile. Generally, credit granted would be approximately 75% of the automobile value with average term of hire purchase contract of 48 months and fixed interest based on market rate.