This disclosure is current as at 6 June 2015
The interest rate for credit sale agreements varies between 18% per annum and 26% per annum. The interest rate under any credit sale agreement is fixed for the duration of the relevant credit sale agreement.
The interest rate applicable to any credit sale agreement will be determined by the dealer you are purchasing a car from. The factors the dealer will consider in determining the interest rate are:
- the term of the loan;
- whether any deposit will be paid;
- the amount of the loan; and
- the credit history/rating of the borrower.
Default Interest Rate
On the default in payment of any amount due under a credit sale agreement, interest will accrue on the amount in default at the higher of:
- 24% per annum; and
- the rate 5% higher than the standard interest rate applicable under the credit sale agreement,
from the date the payment was due until the date of payment
The following credit fees are payable on the establishment of a credit sale agreement:
- Establishment Fee of $350
- PPSR Fee of $25
The following fees are payable during the term of a credit sale agreement
- Monthly account maintenance fee of $8
The following fees are payable on the full prepayment of the credit sale agreement:
- An administration fee of $50.00.
- A fee calculated using the formula prescribed in regulation 9 of the Credit Contracts and Consumer Finance Regulations 2004 (to compensate the creditor for any loss the creditor has suffered as a result of the full prepayment).
The following default fees will apply to any credit sale agreement:
- If any payment is dishonoured – $20.00.
- If there is a default in respect of any insurance obligations – $20.00 per default letter.
- If there is any default in payment or in respect of any other obligations under the credit sale agreement – $20.00 per reminder letter or default notice.
- Administration fee of $50.00 on repossession.