Santander Conditional Sale Agreement

You can exchange your existing car and put it in the initial payment, or simply deposit a cash deposit if you wish. The conditional sale of a balloon is similar to our standard conditional sale product, but with lower monthly repayments, since a substantial repayment of the loan amount is deferred to the final payment. This final amount is called balloon payment and is calculated by predicting the value of the car at the end of your agreement. The main difference between the conditional sale with balloon and the purchase of personal contract is that the balloon payment must be paid in full by you. It`s more like long-term rent, since you make fixed monthly payments to use the car until the contract expires. Payments tend to be lower than other types of car financing, but there is a mileage limitation. You have the option to buy the car at the end of the contract term by paying the payment of optional balloons, but you can simply return the car. Since the agreement is limited to kilometers, there may be an overpayment if the indicated miles are exceeded. A bit like in the case of a conditional sales contract, but with additional flexibility, since part of the costs are deferred until the end of the contract, which can give you the advantage of a reduction in monthly payments.

The deferred amount is called a guaranteed Future Value (GFV), sometimes referred to as an optional final payment. Main | Monetary Who and where are you? | Work & Benefits | Budget and | Shopping & Promotional Gifts | On | MoneySaver`s arms| Covid-19 &Coronavirus Support Hello, I`m looking for financing for a £17000 BMW, but was declared bankrupt 3 years ago and still only has a credit score of 650 on credit experts…