What is an INSTALMENT AGREEMENT An instalment agreement is applicable when a client purchases a vehicle from the bank over a negotiated period at an agreed interest rate. It is a financial facility for a vehicle selected by the client. The vehicle is purchased by the bank, and then sold to the client on specific terms. The client undertakes to repay the full value of the vehicle, plus finance charges, in instalments over an agreed period. Ownership of the vehicle remains vested with the bank until receipt of all amounts due by the client, upon which ownership automatically transfers to the client. The instalment agreement is best suited to: •Clients wishing to retain ownership of vehicle •Private individuals and car allowance users Features, Benefits and Terms of the Instalment Agreement •Enables you to purchase a vehicle without first having to save the full value thereof •Repayment period and deposit can be structured to suit your needs •Repayment periods range from 24 to 72 months for individuals and car allowance users. •VAT is capitalised upfront. •Interest rates are either linked to the Prime Lending Rate or Fixed for the agreement period ◦Linked-rate option ◦Fixed-rate option •Payment option to select from: ◦The client can choose the balloon payment option •The vehicle must be comprehensively insured during the term of the agreement. •Ownership of the vehicle is transferred to the client when the last payment has been made. •You get the benefit of any resale value •Interest rates are linked to the Prime Lending Rate for the agreement period Qualifying criteria The vehicle finance is subject to credit approval.
Posted on: Wed, 19 Jun 2013 07:50:36 +0000
Recently Viewed Topics
© 2015