In Malaysia, the Rental Transactions Act is the Hire Purchase Act of 1967, which came into force on April 11, 1968, after leasing became popular when purchasing expensive consumer goods such as cars, business machinery and industrial machinery. The purchase of cars is the most common type of rental contract in Malaysia and the refund can take up to 9 years from the date of execution of the contract. You must inform the lender in writing that you are terminating the contract. You must then repay the loan or return the item in 15 days. You may have to pay reasonable cancellation fees and interest. If you use an HP agreement to buy a car, the dealer sells the car to the financial company. The financial company will then rent the car to you for an agreed period, usually for a monthly repayment set over several years. However, at the end of the agreement, some HP agreements will receive a balloon payment that is normally higher than your usual monthly repayments. When you buy from Layby, the goods are kept in the shop while you pay for it, usually through regular payments. The shop owns the items until you pay the full price or an agreed part. There is no interest, unlike leases, which can often be subject to surcharges or other fees and fees. In general, a prepayment would mean that you pay overall less in the long run, but this is not always the case, you should always check the terms and conditions before signing an agreement. The cost of a lease is the difference between the cash price of the leased goods and the full rental price.

If the cash price of a car is 12,000 euros and the rental price is 17,000 euros, the rental purchase is 5,000 euros, i.e. the additional costs associated with renting the car (and perhaps at some point) instead of buying it directly in cash. Different credit institutions have different rental costs. Some will cite an APR (Annual Percentage Rate). This can help consumers compare rental costs.