This topic covered Credit Sale.

  • A Credit Sale agreement is a `purchase` agreement where title to the goods passes immediately to the customer.
  • It has a structure similar to HP or Conditional Sale in that it has flexible deposits and periods to meet a customer's budget.
  • However, a Credit Sale is an unsecured finance agreement which is not directly linked/secured to a vehicle.
  • Under a Credit Sale there are no restrictions on mileage or usage of the vehicle, sinc the customer is the legal owner.
  • There are no termination or repossession rights on a Credit Sale.
  • Credit Sale agreements can be regulated, exempt or unregulated depending on the nature of the customer and the amount of credit.