My Car is Financed: Do I Really Need to Tell My Bank About My VEP Registration?

For many of us Singaporean car owners, our beloved vehicles are still technically owned by the bank, thanks to a car loan. So, when it comes to getting that all-important Vehicle Entry Permit (VEP) to drive into Malaysia, a very common and understandable question pops up: "Do I actually need to tell my bank that I'm registering for a VEP?" This concern is totally valid, especially since the bank usually holds onto the car's ownership until you've paid off that loan in full.

When you sign on the dotted line for a car loan, your agreement with the bank usually includes a bunch of clauses. These clauses cover things like how you use the vehicle, how you maintain it, and even where it's located. Why? Because these are all designed to protect the bank's asset – your car – until that loan is completely settled.

In the vast majority of standard car loan agreements in Singapore, you won't find an explicit clause that demands you specifically notify your bank about VEP registration. The VEP is a regulatory requirement for foreign vehicles entering Malaysia, and it typically doesn't affect the bank's security interest in your vehicle. In other words, it doesn't put their investment at risk.

At MyMechanic, our main priority is making sure your vehicle is 100% compliant with all Malaysian VEP regulations. While we can't offer legal advice regarding your specific loan agreement (that's a job for your bank or a lawyer!), we can certainly assure you that VEP registration itself is a very standard and routine procedure for Singaporean cars entering Malaysia.

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