Rent2Own
Is a form of credit. The customer agrees to
buy goods from us and to pay for those goods in installments. The customer has
the right to possess and use the goods from the time the contract is made. The
finance company or us, keep ownership of the goods until all payments are
completed. Until the contract is completed the customer cannot sell the goods
without the knowledge and agreement of the finance company or us.
Rent-to-own agreements are considered to be
contracts where the customer hires the goods with an option to purchase. If the
customer is only renting goods with no interest in purchasing them the contract
is likely to allow termination with notice.
What law applies to Rent-to-Own?
Rent-to-Own
sales comply with the Rent-to-Own contract. Where a customer is paying more than
the cash price of the goods (e.g., with interest added) the sale must also
comply with the Credit Contracts. Where the customer fails to pay their
installments or puts the goods at risk, the finance company or seller must
comply with the Credit (Repossession) .
What is a Rent-to-Own contract?
A Rent-to-Own contract is a "conditional
sale agreement". The sale is conditional on the person making payments in
accordance with the terms and conditions of the contract.
When
the customer buys goods on Rent-to-Own there are three parties involved
The customer - who buys the goods
The retailer - who sells the goods
The finance company - which provides the
finance.
Note: The retailer and the Finance
company can be the same.
We as retailers make the initial contract
with the customer. Once the contract has been signed we reserve the right to
assign our rights and obligations regarding credit matters to a finance company.
Whether these rights and obligations will revert back to us will depend on the
terms and conditions of our agreement with the finance company.
Credit assessment
We reserve the right to run a credit check
or a credit assessment on the customer who wishes to purchase goods under the
Rent2Own scheme.
Terms of Payments
Initial advance cash payment of 25% ( or more if the customer wishes to) of the total value of goods purchased is required. There is no interest calculated on the advance payment
The rest of the payment are spread over 6
months or 1 year. Interest is calculated on this payment at approximately 1%
per month.
If the balance is paid in less than the
contract period, the interest calculated will be credited back.
Is a
transaction in which the purchaser of goods pays an initial deposit and takes
possession. Subsequent installments are made over a specified time after which
ownership passes to the purchaser.
Required Documentations
Valid CPR
Valid Resident Permit (for expatriates)
Proof of Employment.
Note: We reserve the right to request extra
proof of credit worthiness