In Malaysia, many people use the "sambung bayar" method to buy or sell vehicles without officially transferring ownership. While it may seem convenient and cost-saving, this method carries significant risks for both buyers and sellers.
At Parkson Credit, we want to help you understand the risks of sambung bayar and how to protect yourself.

📌 What Is 'Sambung Bayar'?
"Sambung bayar" means the buyer continues making installment payments for a vehicle without changing the official ownership. The car loan remains under the seller’s name until the debt is fully settled.
Though this method is often used to bypass formal procedures, it comes with major legal and financial risks.

⚠️ Risks for Buyers
🚫 No Legal Ownership
You're making payments, but the vehicle is still legally under the seller's name.
If the seller faces financial problems, the bank may repossess the vehicle—even if you’ve been making payments.

💰 Risk of Seller Defaulting on the Loan
If the seller remains legally responsible for the loan but fails to pay, the vehicle can be repossessed by the bank.
You may lose all the money you’ve already paid.

⚖ No Legal Protection
Sambung bayar is not recognized under Malaysian law.
In the event of a dispute, it’s difficult for buyers to claim legal ownership or seek protection.

⚠️ Risks for Sellers
📑 Still Liable for the Loan
Even if the vehicle is being used by the buyer, the seller remains legally responsible for repaying the loan.
If the buyer defaults, the seller may be blacklisted.

🚗 Risk of Damage or Theft
If the vehicle is involved in an accident or stolen, the seller is still liable to the insurance company and the bank.

🔒 Difficult to Reclaim the Vehicle
If the buyer refuses to return the vehicle after the agreement ends, the seller may need to go through a lengthy and costly legal process.

✅ How to Protect Yourself
🔹 Officially Transfer Ownership
The safest way is to change vehicle ownership at the JPJ (Road Transport Department).
This ensures the buyer is the legal owner and relieves the seller of loan responsibilities.

🔹 Create a Written Agreement
If you still choose sambung bayar, make sure there is a written agreement with witnesses that clearly states:
✔ The buyer is fully responsible for installment payments.
✔ Conditions for ownership transfer after the loan is paid off.
✔ Actions that will be taken if the buyer fails to pay.

🔹 Check Vehicle Records
Ensure there are no outstanding debts or summonses before buying a sambung bayar vehicle.
Verify with JPJ and the bank for confirmation.

🔹 Use Licensed Financial Services
If you need financing to buy a vehicle, go through licensed financial institutions like Parkson Credit.
We offer transparent and secure vehicle loans without hidden risks.

🚨 What to Do If You’re Caught in a Sambung Bayar Dispute?
1️⃣ Discuss with the Buyer or Seller – Try to resolve the issue amicably first.
2️⃣ Report to JPJ or the Bank – In case of a dispute, seek help from the relevant authorities.
3️⃣ Seek Legal Assistance – If the situation escalates, contact a lawyer for further action.