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The Auto Finance Contract serves as the primary legal instrument for vehicle financing transactions in Malaysia, structured in compliance with the Hire-Purchase Act 1967 and other relevant financial services legislation. It is used when a purchaser requires financing to acquire a vehicle, whether through conventional or Islamic financing methods. The document establishes the legal relationship between the financial institution and the borrower, detailing the financing terms, payment obligations, security arrangements, and parties' rights and responsibilities. It incorporates mandatory consumer protection provisions required by Malaysian law, including early settlement rights, insurance requirements, and repossession procedures. The contract can be adapted for individual or corporate borrowers and may include additional provisions for guarantors or special financing arrangements.

1. Parties: Identification of the finance provider and the borrower/hirer with complete details as required by Malaysian law

2. Background: Context of the agreement and confirmation that the hirer wishes to purchase the vehicle through financing

3. Definitions: Definitions of key terms used throughout the agreement, including financial terms and legal requirements under Malaysian law

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

5. Financial Terms: Details of the purchase price, down payment, interest rate/profit rate, total amount financed, and payment schedule

6. Payment Terms: Specifics about payment methods, due dates, and consequences of late payment

7. Security Interest: Declaration of the finance provider's security interest in the vehicle until full payment

8. Insurance Requirements: Mandatory insurance coverage requirements and responsibilities

9. Borrower's Warranties and Obligations: Warranties about the borrower's capacity and obligations regarding vehicle maintenance and use

10. Restrictions and Prohibited Actions: Prohibited actions such as selling or modifying the vehicle without consent

11. Default and Remedies: Events of default and the finance provider's rights and remedies

12. Repossession Rights: Circumstances and procedures for vehicle repossession as per Malaysian law

13. Early Settlement: Terms and calculations for early settlement as required by the Hire-Purchase Act

14. Notices: Requirements for formal communications between parties

15. Governing Law: Confirmation of Malaysian law as governing law and jurisdiction