Used Car Purchase Agreement for Malaysia

Used Car Purchase Agreement Template for Malaysia

A comprehensive legal document governed by Malaysian law that formalizes the sale and purchase of a used motor vehicle between two parties. This agreement outlines the terms and conditions of the sale, including vehicle details, purchase price, warranties, and transfer of ownership procedures in accordance with Malaysian regulations. The document incorporates requirements from relevant Malaysian legislation including the Sale of Goods Act 1957, Consumer Protection Act 1999, and Road Transport Act 1987, ensuring compliance with local legal requirements while protecting both buyer's and seller's interests.

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What is a Used Car Purchase Agreement?

The Used Car Purchase Agreement is a vital legal document used in Malaysia for the sale and transfer of ownership of pre-owned vehicles. This agreement is essential for both private sales and commercial dealership transactions, providing a legally binding framework that protects the interests of both buyers and sellers. It includes detailed specifications of the vehicle, agreed purchase price, payment terms, warranties, and conditions of sale, while ensuring compliance with Malaysian vehicle transfer regulations and consumer protection laws. The document is particularly important in the Malaysian context where the used car market is substantial and requires clear documentation for vehicle registration transfer at the Road Transport Department (JPJ). It helps prevent future disputes by clearly documenting the condition of the vehicle, any known defects, and the agreed terms of sale.

What sections should be included in a Used Car Purchase Agreement?

1. Parties: Identification of the seller and buyer with complete details including name, IC number/registration number, and address

2. Background: Brief context of the transaction and confirmation that the seller owns the vehicle and has the right to sell it

3. Definitions: Definitions of key terms used throughout the agreement

4. Vehicle Details: Comprehensive description of the vehicle including make, model, year, registration number, chassis number, engine number, and color

5. Purchase Price: The agreed purchase price and payment terms, including deposit and balance payment details

6. Condition of Vehicle: Description of the vehicle's current condition, including known defects and recent maintenance history

7. Warranties and Representations: Seller's warranties regarding vehicle ownership, encumbrances, and condition

8. Transfer of Ownership: Process and obligations for transferring vehicle ownership and registration

9. Completion of Sale: Details of the completion process, including documentation, payment, and handover procedures

10. Risk and Insurance: Transfer of risk and insurance responsibilities

11. Governing Law: Specification that Malaysian law governs the agreement

12. Execution: Signature blocks for parties and witnesses

What sections are optional to include in a Used Car Purchase Agreement?

1. Inspection Period: Used when buyer is given a period to inspect the vehicle before finalizing the purchase

2. Third-Party Inspection: Include when parties agree to have the vehicle inspected by a professional mechanic

3. Financing Conditions: Required when the purchase is subject to obtaining financing

4. Extended Warranty: Include if seller provides additional warranty beyond statutory requirements

5. Trade-In Terms: Used when part of the payment includes a vehicle trade-in

6. Intermediary Details: Include when a dealer or agent is involved in the transaction

7. Post-Sale Repairs: Used when seller agrees to complete specific repairs after sale

8. Dispute Resolution: Optional detailed dispute resolution procedures beyond standard court jurisdiction

What schedules should be included in a Used Car Purchase Agreement?

1. Schedule 1 - Vehicle Inspection Report: Detailed report of vehicle condition and any identified defects

2. Schedule 2 - Vehicle Service History: Records of previous maintenance and repairs

3. Schedule 3 - Vehicle Registration Documents: Copies of current registration card and other official documents

4. Schedule 4 - Vehicle Photos: Dated photographs showing vehicle condition at time of sale

5. Schedule 5 - Payment Schedule: If payment is to be made in installments, detailed payment timeline

6. Appendix A - Vehicle Handover Checklist: List of items to be checked and signed off during vehicle handover

7. Appendix B - Required Transfer Documents: List of documents required for ownership transfer at JPJ (Road Transport Department)

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Malaysia

Publisher

Genie AI

Document Type

Purchase Agreement

Cost

Free to use
Relevant Industries

Automotive

Retail

Financial Services

Insurance

Consumer Goods

Transportation

Legal Services

Relevant Teams

Legal

Sales

Compliance

Finance

Customer Service

Documentation

Vehicle Inspection

Business Development

Risk Management

Relevant Roles

Sales Manager

Used Car Dealer

Automotive Sales Executive

Legal Counsel

Compliance Officer

Finance Manager

Insurance Agent

Vehicle Inspector

Documentation Specialist

Business Development Manager

Customer Service Representative

Automotive Finance Specialist

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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