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Used Car Sale Contract for Malaysia

Used Car Sale Contract Template for Malaysia

A comprehensive legal agreement governed by Malaysian law that facilitates the sale and purchase of used vehicles between parties. This contract ensures compliance with Malaysian vehicle transfer regulations, consumer protection laws, and the Road Transport Act 1987. It includes detailed provisions for vehicle description, warranties, payment terms, and ownership transfer procedures specific to the Malaysian context, while protecting both buyer and seller interests through clear documentation of the vehicle's condition, history, and any encumbrances.

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Used Car Sale Contract

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What is a Used Car Sale Contract?

The Used Car Sale Contract is essential for any transaction involving the sale of a pre-owned vehicle in Malaysia. This document is designed to comply with Malaysian legal requirements, including the Road Transport Act 1987, Consumer Protection Act 1999, and Contracts Act 1950. It serves both private sellers and professional dealerships, providing a legally binding framework that covers vehicle details, payment terms, warranties, and ownership transfer procedures. The contract is particularly important in the Malaysian market where used car sales require specific documentation for the Road Transport Department (JPJ) and must address local regulatory requirements for vehicle transfers and registrations.

What sections should be included in a Used Car Sale Contract?

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

2. Background: Brief context of the sale and confirmation that the seller is the legal owner of the vehicle

3. Definitions: Definitions of key terms used in the agreement including 'Vehicle', 'Purchase Price', 'Completion Date', etc.

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

5. Purchase Price and Payment Terms: Agreed purchase price, payment method, deposit amount, and balance payment schedule

6. Seller's Warranties: Seller's warranties regarding vehicle ownership, condition, accident history, and outstanding loans

7. Transfer of Ownership: Process and obligations regarding the transfer of vehicle ownership at JPJ (Road Transport Department)

8. Completion of Sale: Details of the completion process, including handover of vehicle, documents, and keys

9. Governing Law: Specification that the agreement is governed by Malaysian law

What sections are optional to include in a Used Car Sale Contract?

1. Inspection Period: Used when the buyer wishes to include a period for independent inspection before finalizing the purchase

2. Financing Arrangements: Required when the purchase involves bank financing or hire-purchase arrangements

3. Trade-In Terms: Included when there is a vehicle trade-in as part of the transaction

4. Warranty Period: Optional extended warranty terms if offered by the seller

5. Dispute Resolution: Detailed dispute resolution procedures, recommended for high-value transactions

6. Agent Authorization: Required when either party is acting through an authorized agent

What schedules should be included in a Used Car Sale Contract?

1. Schedule 1 - Vehicle Condition Report: Detailed report of the vehicle's current condition, including photographs and noted defects

2. Schedule 2 - Service History: Documentation of the vehicle's maintenance and service history

3. Schedule 3 - Vehicle Registration Documents: Copies of current vehicle registration card and other relevant documentation

4. Schedule 4 - Payment Schedule: If payment is to be made in installments, detailed payment schedule with dates and amounts

5. Appendix A - Vehicle Inspection Report: Independent inspection report if conducted

6. Appendix B - Outstanding Loans Declaration: Declaration of any outstanding loans or encumbrances on the vehicle

Authors

Alex Denne

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

Jurisdiction

Malaysia

Document Type

Sale Agreement

Cost

Free to use
Relevant legal definitions






























Clauses




























Relevant Industries

Automotive

Retail

Financial Services

Transportation

Vehicle Leasing

Insurance

Consumer Goods

Relevant Teams

Sales

Legal

Compliance

Finance

Operations

Customer Service

Documentation

Vehicle Inspection

Business Development

Risk Management

Relevant Roles

Sales Manager

Used Car Dealer

Automotive Sales Executive

Finance Manager

Legal Counsel

Compliance Officer

Vehicle Inspector

Business Development Manager

Contract Administrator

Operations Manager

Documentation Specialist

Customer Service Representative

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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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