The structure of a credit sales contract is similar to lease-sale (without option to purchase) or conditional sale. As part of a conditional sales contract, the property will be automatically transferred to you as soon as the financing has been fully repaid. A conditional sales contract is the same as the rental purchase, except that you automatically own the car as soon as the financing has been fully repaid. Ideal for: people looking for a simple financing agreement with the option of owning the car. These contracts are easy to organize quickly and available at most car dealerships. If you are lagging behind, the lender may start collecting interest, which may be at a higher interest rate than usual. Check your loan agreement to see what it is. The credit contract is the legal document you signed when you paid the loan. If all refunds have been made in an HP agreement, you will have the option to purchase the car and acquire the property. This means that a “purchase option” will pay a fee that will cover the administration costs for the financial company transferring ownership from the car to you.
If you wish to settle a lease in full or in full before the end of the contract, you have the right to make prepayments to your financial company. You should find out how best to do this to your financial business. This property is usually offered at the Point of Sale. The dealer provides the vehicle to the customer, but is financed by the lender (see module financial structures). This purpose of this type of transaction is sometimes called a “credit offer” and, after the provision of goods or services, the party who received the receipt owes a commercial debt to the other party. This debt is repayable in accordance with the terms of payment of the contract. A contract to purchase credit is a contract for the sale of property under which the buyer pays in increments and becomes the owner of the goods, either at the conclusion of the contract or at the conclusion of a contract, according to the terms of the individual contract. As part of a credit sales contract, you buy the goods at a cash price. They usually have to pay interest, but some providers offer interest-free loans. The refund is made in installments until you have paid the full amount.
Another way to protect yourself is to include a property reserve clause in the credit purchase agreement. This clause, also known as the “Romalpa” clause, allows the buyer to own the goods, but only acquires the seller`s property when the final purchase price is paid. Credit purchase contracts may be regulated, exempt or unregulated in accordance with consumer credit regulations. It all depends on the nature of the client and the amount borrowed. In the case of Credit Sales, there is no deferral of ownership of the goods. The buyer of the vehicle immediately becomes the owner. Under a conditional lease or sale agreement, the customer receives ownership of the vehicle only when the terms of the contract are met – reimbursement of all unpaid credits and fees due. The rental purchase is exactly what it looks like, a lease that gives you the ability to own the car at the end of the deal. These are usually fixed costs, i.e.
the Annual Percentage Rate (RPA) is set before the contract begins. The loan period is also set – usually three to four years – and the financing contract is guaranteed against the purchase of the car, which means that lenders can be flexible in their offers.