So what exactly is ‘sambung bayar‘? This was an alien concept to me up until recently when I realised that cars were bought and sold on what felt more like a gentleman’s agreement than a binding contract. The term ‘sambung bayar‘ really refers to an owner who is still currently servicing a loan for his/her car but wants to sell it off to a party that would purchase it and continue servicing the original owner’s loan. Up until the loan repayments are completed, the car’s ownership is then transferred over to the purchaser via a JPJ K3 form.
The seller usually gets a one time deposit from the purchaser as a guarantee of intent as well as a fallback in the event that the purchaser falls foul on servicing the seller’s loan. A simple agreement is signed between both parties at point of handing over the car, to signify that the purchaser will now continue servicing the current loan and is responsible for the vehicle itself and that the transfer of ownership will be performed upon the completion of the loan.
So what drives folks to not mind ‘purchasing’ a car without having a ownership transfer performed? One of the main reasons for this is the fact that the purchaser wants to drive around in a better car than he/she can otherwise afford if he/she were to purchase it second hand (due to second hand loan rates, heavy downpayment etc). Others purchase cars through this method because they are not able to get the credit line required for such a purchase.
Whatever the reasons for buying and selling through the sambung bayar method, it undoubtedly has its own market here locally, unbeknown to some of us – at least up until you read this article, perhaps.