A personal loan is normally a fixed cost, fixed period loan of money to purchase any item a customer wants - including a Motor Vehicle. The loan is not secured on the vehicle & the customer owns the vehicle outright from the outset.
- Deposit - usually optional at the discretion of the customer
- Fees - there are usually fees attached to a Personal Loan Agreement
- Payments - payments are fixed for the duration of the agreement
- Mileage - there are no mileage restrictions on a Personal Loan Agreement
- Insurance - there are no insurance stipulations on a Personal Loan Agreement
- Condition - there are no vehicle condition stipulations on a Personal Loan Agreement
- Interest Rate - the interest rate is fixed for the duration of the agreement
A Personal Loan Agreement can be settled at any time by the customer by paying the balance of finance outstanding to the lender. The lender may allow the customer a rebate of the interest if the outstanding finance balance is settled before the agreement end date. If it is a Personal Loan Agreement regulated by the FCA, then the minimum amount of rebate will be set out in the FCA's rules. You can make additional payments & receive a corresponding reduction in interest.
End of the agreement
A Personal Loan Agreement ends once all the contracted payments have been made. It has no effect on the ownership of the vehicle.
There are no voluntary termination rights on a Personal Loan Agreement.