KUALA LUMPUR, Nov. 14 -- Buying a vehicle in Malaysia is set to become fairer for consumers, thanks to long-awaited amendments to the Hire-Purchase Act (HPA) that will overhaul how car loan interest is calculated.

The changes are designed to give borrowers more transparent terms and greater savings, especially on early settlements.

Here's what you need to know.

What is the biggest change?

The new law abolishes the "Rule of 78" and "flat rate" interest calculations for all future hire-purchase loans.

These will be replaced by the reducing balance method, a more fair and simple formula that is already the standard in countries like Australia and the UK.

The way your interest is calculated has a huge impact on how much you pay and when...