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🚗 Buying a Car in Malaysia

New vs used, hire purchase, JPJ ownership transfer, PUSPAKOM inspection, insurance, and road tax.

JPJ Transfer Fee
RM100 (car)
PUSPAKOM Inspection
RM30 (used cars)
Transfer Deadline
Within 3 months
Key Body
JPJ (Road Transport)

New Car from Dealer — Step by Step

  1. Select your vehicle and negotiate price. Get official quotation from the dealer. Confirm the OTR (On-The-Road) price which includes road tax and insurance for Year 1.
  2. Pay the down payment. Typically 10% of the vehicle price. The dealer will ask you to sign a booking form.
  3. Apply for a hire purchase loan. Banks offer tenures of 5–9 years. Typical interest rates: 2.4%–3.8% flat p.a. (varies by bank, vehicle type, credit profile). Required documents: MyKad, payslips (3 months), bank statements (3 months), EA form or tax return.
  4. Sign the hire purchase agreement. Read it carefully — it specifies the monthly instalment, interest rate, total amount payable, and conditions for early settlement.
  5. Dealer handles JPJ registration. The dealer registers the vehicle under your name with JPJ and arranges first-year road tax and insurance. This is included in the OTR price.
  6. Take delivery. Verify the vehicle condition, confirm road tax and insurance are active, and ensure you have the JPJ registration card (geran).

Used Car (Private Transfer) — Step by Step

  1. Agree on price. Negotiate with seller. Check the vehicle's ownership history, outstanding hire purchase, and summons via the MySikap portal or JPJ counter.
  2. PUSPAKOM inspection (compulsory). Bring the car to any PUSPAKOM centre. Fee: RM30. PUSPAKOM produces a B5 form (if no outstanding loan) or B7 form (if loan still active — bank must confirm settlement). Without this form, JPJ will not process the transfer.
  3. Settle outstanding hire purchase (if any). If the seller has an active loan on the car, this must be fully settled before transfer. Your bank can pay off the seller's outstanding loan directly if you're financing the purchase.
  4. Buyer gets insurance cover note under their own name. You must have valid car insurance before JPJ will process the transfer. Get a cover note (temporary insurance) first.
  5. Both seller and buyer attend JPJ office together. Both parties must appear in person for biometric fingerprint verification. Submit the JPJK3 form (transfer of ownership form) along with PUSPAKOM inspection certificate and insurance cover note.
  6. Pay JPJ ownership transfer fee: RM100. Cash or online payment at the JPJ counter.
  7. Collect new VOC (Vehicle Ownership Certificate / Geran). The new geran with your name will be issued, typically same day or within 1–3 working days.
  8. Renew road tax under your name. The previous owner's road tax covers the car but is in their name — renew road tax immediately in your own name.

Documents Checklist

Used Car Transfer

New Car (Hire Purchase Loan Application)

JPJ Fees

Vehicle TypeTransfer Fee
Private carRM100
MotorcycleRM5
Commercial vehicleRM50–RM500 (varies by class)

Road Tax (Annual)

Road tax is calculated based on engine capacity (cc) for petrol/diesel vehicles. Peninsular Malaysia rates are higher than Sabah and Sarawak rates.

Engine CapacityAnnual Road Tax (Peninsular)
Up to 1,000ccRM20
1,001cc – 1,200ccRM55
1,201cc – 1,400ccRM70
1,401cc – 1,600ccRM90
1,601cc – 1,800ccRM200 (base) + RM0.50/cc above 1,600cc
Above 1,800ccHigher progressive rates

For EVs (from 1 Jan 2026): road tax is calculated on motor power output (kW). The previous EV exemption ended 31 Dec 2025.

Road Tax Renewal Options

PUSPAKOM — When Is It Required?

SituationPUSPAKOM Required?
Private car — private ownership transferYes (compulsory)
Motorcycle — private transferNo
New car from dealerNo
Road tax expired over 1 yearYes (B2 form)
Registered owner deceasedYes (B2 form)
Registered owner overseasYes (B2 form)

Key Government Links

Pro Tips — What First-Time Car Buyers Miss

Frequently Asked Questions

What is the difference between Comprehensive and Third Party insurance?
Comprehensive insurance (komprehensif) covers damage to YOUR car (accidents, theft, fire, flood) AND damage or injury to third parties. Third Party Only (TPO) covers only damage or injury you cause to OTHERS — your own car is not covered. Third Party, Fire and Theft (TPFT) adds fire and theft coverage for your car. For new or financed cars, banks require comprehensive coverage. For older cars worth less than RM20,000–RM30,000, third party is sometimes more cost-effective — calculate whether the premium saved is worth the coverage difference.
How is road tax (cukai jalan) calculated?
Road tax in Malaysia is calculated primarily based on engine cubic capacity (CC) and whether the car is private or commercial. Peninsular Malaysia and East Malaysia (Sabah/Sarawak) have different rates. For private cars: below 1,000cc pays RM20/year; 1,001–1,200cc pays RM55; 1,201–1,400cc pays RM70; above 3,000cc can exceed RM1,000/year. Check JPJ's published rate table at jpj.gov.my for the exact current rates for your engine size.
Can I buy a car if I am on Employment Pass (foreigner)?
Yes. Foreigners in Malaysia with valid immigration passes can purchase and register a car in their own name. You'll need your passport, a valid immigration pass (Employment Pass, MM2H, etc.), proof of Malaysian address, and your income documents for hire purchase applications. Note: Malaysian car loans from local banks may have stricter income requirements for non-citizens, and some banks may require a higher down payment (bayaran pendahuluan).
What is PUSPAKOM and when is it required?
PUSPAKOM (Pusat Pemeriksaan Kenderaan Berkomputer) is Malaysia's mandatory vehicle inspection body. For private car ownership transfers between individuals, a B5 inspection is required — the seller and buyer must bring the vehicle to a PUSPAKOM centre before JPJ will process the transfer. The B5 inspection covers structural integrity, brakes, lights, tyres, and emissions. Fee: approximately RM35–RM50. You do NOT need PUSPAKOM for brand new cars from dealers. See the table above for a full breakdown of when PUSPAKOM applies.
Can I renew my road tax and insurance online?
Yes — and this is now the preferred method. Use MyEG (myeg.com.my) or the MyJPJ app to renew both insurance and road tax in one transaction. You save RM5 on the road tax renewal fee when using MyJPJ. The physical road tax disc (cakera cukai jalan) is mailed to your registered address, or you can collect it at a post office. The digital record is updated instantly in the JPJ system, so enforcement checks are against the database, not the physical disc.
What happens if I miss my road tax renewal?
Driving with expired road tax is an offence under the Road Transport Act 1987 — fines (saman) of up to RM3,000 can be issued, and your car can be clamped or impounded. If your road tax has been expired for more than 12 months, you may need a PUSPAKOM B2 inspection before renewal. Your insurance policy should not be confused with road tax — the two are separate. Many Malaysians mistakenly believe renewing insurance automatically renews road tax. It does not.

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⚠ Disclaimer: This guide is for informational purposes only. Road tax rates, JPJ fees, and hire purchase terms can change. Always verify with JPJ and your bank before proceeding. Last reviewed: March 2026.