Structure

Credit Sale is another form of `tri-partite` transaction usually available to both private and business customers.

Credit Sale agreements can be regulated, exempt or unregulated. This all depends on the type of customer and the amount borrowed.

With Credit Sale, there is no deferment of title to the goods. The buyer of the vehicle immediately becomes the owner. Under a Hire Purchase or Conditional Sale agreement the customer does not obtain title to the vehicle until the terms of the agreement have been fulfilled - repayment of all the outstanding credit and any fees due.

The structure of a Credit Sale agreement will be similar to Hire Purchase (without an Option to Purchase Fee) or Conditional Sale.

The finance company is providing the finance to the customer in order to make a specific purchase.

This facility is usually offered at the Point of Sale. The dealer supplies the vehicle to the customer, but it is financed by the creditor/lender (see Finance Structures module).