New rules on the way: A woman viewing a car to buy at a Proton showroom in Petaling Jaya. The recently passed Hire Purchase (Amendment) Bill 2025 abolishes the front-loaded interest method for fixed-rate hire purchase loans and replaces it with the reducing balance system. — AZHAR MAHFOF/The Star
Economists say legal amendments will improve fairness in auto financing
PETALING JAYA: The newly passed Hire Purchase (Amendment) Bill 2025 which will overhaul how interest is calculated for fixed-rate car loans, marks a major reform in consumer credit, say economists.
