While hire purchase remains the most common method of financing vehicle purchases in Malaysia, the traditional definition of car ownership is being gradually expanded to include leasing, with more car brands going down this route to meet different requirements of buyers and businesses.
Here’s how the BMW Group Malaysia’s Easy Drive financing solution works; it begins with choosing an initial down payment of between 10% to 30%, then a loan tenure of between three or four years, and a mileage cap of either 20,000 km or 25,000 km, annually. After which, BMW Group Financial Services Malaysia tabulates the monthly installment and a Guaranteed Future Value of the vehicle.
At the end of the tenure, the lessee can trade in the car and choose another BMW or MINI to upgrade to, or return the vehicle with no further obligations (e.g. such as finding a buyer), or settle the final payment which is also the guaranteed future value as agreed upon, or lastly, to extend the contract term of the current vehicle.
While the monthly installment of a lease is higher than that of a hire purchase plan (over the same period), the leasing option suits customers and businesses with little inclination to ‘own’ or use the vehicle beyond three to four years. For those with concerns on the residue values of plug-in hybrid vehicles, Easy Drive is also a suitable financing option as it guarantees the future value of the vehicle.