Overview
A fixed sum loan is a fixed cost, fixed period, loan used to purchase the vehicle of your choosing.
You will own the vehicle from day one if you make your vehicle purchase using a fixed sum loan agreement, as you are buying it outright from the car dealership. You will immediately take title to the vehicle.
Under your loan agreement, you agree to make regular payments to the bank/lender until the total amount borrowed (plus interest) is repaid in full.
There are no mileage or usage restrictions on the vehicle.
Ending the Agreement
A personal loan agreement can be settled at any time by the customer, to do this you will need to pay the outstanding balance to your lender.
Although a fee may be charged for early settlement, the lender may allow the customer a rebate of the interest remaining on the agreement.
Your agreement will end when all the repayments have been made.
Summary
• A personal loan is an unsecured funding facility and can be used for almost any purpose.
• A personal loan to an individual will normally be a regulated credit agreement unless one of the exemptions applies.
• The minimum and maximum loan amount is determined by the lender based on the risk they are prepared to bear.
• The loan amount can be settled at any time by the customer.
• No deposit is necessary from the customer, but a fee may be charged by the lender.
• The loan is paid over a fixed period of time (normally a maximum of 5 years).
• The customer immediately becomes the legal owner of the vehicle funded by a loan.