1. Don't need to pay the debt.

Yes no need to pay. The executor of the dad's estate will settle it if there is enough money.


2. A car ownership goes with the name. It is the father's car, whether you are driving or paying the loan, doesn't mean it is owned by you. Even you pay off the installment, the car is not belonged to you, but the father.

This I am afraid is not correct. The ownership is with the financier. His dad has an option to purchase after hiring for a specified time. As such, since his dad is no longer around, he cannot exercise the option. So even if you pay finish the hire purchase, the car cannot be registred under his father's or his name.

Yes, must inform the bank.

Agreed.

Banks won't able to chase after you on the father's debt.
Banks will follow the estate law, aka use the father left over asset to pay off the debt.
Banks cannot chase after the debt from the family members.