What to Do After Settling Your Car Loan
As a senior Perodua Sales Advisor with 15 years of experience, I’ve often guided customers through the car ownership process, and many ask what to do after fully settling their car loan. It’s a significant milestone in ownership, and there are several key steps to ensure that everything is in order. Here are eight major points to consider:
1. Obtain the Release Letter from the Bank
- Proof of Loan Settlement: After you’ve made your final car loan payment, the first thing you should do is obtain a release letter from your financing bank. This document serves as proof that the loan has been fully paid and that the bank no longer holds any financial interest in your car.
- Essential for Ownership Transfer: This letter will be needed to complete the ownership transfer and remove the bank’s lien on your car.
2. Retrieve the Original Car Grant (Ownership Certificate)
- Full Ownership of the Vehicle: Once the loan is settled, the bank will release the original car grant (also known as the Vehicle Ownership Certificate or VOC). This document proves that you are the sole legal owner of the car.
- Necessary for Selling or Transferring: You’ll need this document if you ever decide to sell the vehicle or transfer ownership to someone else.
3. Update Your Insurance Policy
- Remove Bank as a Lienholder: After you settle the loan, you should inform your insurance provider. The bank is no longer a lienholder, so your insurance policy will need to be updated to reflect your sole ownership of the vehicle.
- Evaluate Your Coverage: It might also be a good time to review your insurance coverage to ensure it still suits your needs. With no loan, you might have more flexibility in choosing the right level of coverage.
4. Update Road Transport Department (JPJ) Records
- Change of Ownership Status: You’ll need to visit the Road Transport Department (JPJ) to update your car ownership records, indicating that you now fully own the car without any bank liens. This is crucial for legal purposes.
- Required Documents: Bring the release letter, original car grant, and your identification when visiting JPJ.
5. Consider a Car Upgrade
- Time for an Upgrade?: Now that you have settled your loan, you might consider upgrading to a newer Perodua model. For example, Perodua’s latest offerings like the Ativa or Bezza offer modern features, better fuel efficiency, and improved safety standards compared to older models.
- Trade-In Options: Perodua offers attractive trade-in options for loyal customers, allowing you to get the best deal when upgrading to a new car.
6. Review and Maintain Your Car’s Condition
- Ensure Good Maintenance: Even though you’ve paid off your car, maintaining it is crucial. Regular servicing at authorized Perodua service centers ensures that your vehicle stays in good condition and retains its value.
- Service Discounts: Perodua offers service packages and discounts for long-term owners, making it more affordable to keep your car in top shape.
7. Plan for Future Financial Goals
- Redirect Your Funds: Now that you’ve completed your car loan payments, it’s a good idea to assess your financial situation. Consider redirecting the funds that went into the car loan towards savings or other financial goals.
- Plan for the Next Purchase: If you plan to buy another vehicle in the future, start saving for a down payment to reduce the need for heavy financing.
8. Consider Selling or Keeping
- Evaluate the Market: Depending on the car’s age, condition, and mileage, it may be worth considering selling it while it still holds value. Perodua cars tend to retain value well, especially models like the Myvi or Axia.
- Long-Term Ownership: If you plan to keep the car long-term, make sure you continue with regular servicing and take care of any wear and tear to maximize its lifespan.
Conclusion
Settling your car loan is a significant achievement, but it’s important to complete the necessary follow-up steps to ensure everything is properly in order. From obtaining the release letter and original car grant to maintaining your car and planning future financial goals, each step plays an important role in maximizing your ownership experience. Whether you’re looking to keep your Perodua car or considering an upgrade, the completion of your car loan opens up new opportunities for the future.
