This document provides an explanation of the important features of the Hire Purchase Agreement that you are considering entering into with ALD Automotive Ltd; the Agreement is regulated by the Consumer Credit Act 1974 (CCA). The full terms and conditions of your Hire Purchase Agreement will be set out in the terms and conditions attached to the Agreement. If you are taking finance with an alternative funder through Affinity Leasing, the law as set out below still applies but their PCE can be provided on request.
INTRODUCTION
PRE –CONTRACT INFORMATION (SECCI)
ABOUT YOUR PROPOSED AGREEMENT
REPAYMENTS
WHEN DOES THE AGREEMENT TAKE EFFECT?
KEY RESPONSIBILITIES FOR THE VEHICLE
WHAT HAPPENS IF YOU DON'T MAKE REPAYMENTS?
YOUR RIGHT TO WITHDRAW
ANY QUESTIONS?
INTRODUCTION
The credit provided under the Agreement can only be used to acquire the Vehicle set out in the Agreement; ALD will be paying the credit to the supplier of the Vehicle and it is therefore unsuitable for any other purpose.
The CCA gives you certain rights and protections. Under the act, ALD must ensure that an adequate explanation of your proposed Agreement is carried out with you before your Agreement is made; so that you can decide whether or not it is suitable for you to go ahead.
PRE –CONTRACT INFORMATION (SECCI)
In addition to the information contained in this document, you will be provided with separate pre-contract information (SECCI) about your Agreement. The pre–contract information (SECCI) contains detailed information about your Agreement. An example SECCI can be viewed by clicking here
The pre–contract information (SECCI) will be discussed with you in person, so that you can take it away and study it in your own time. ALD advises you to consider both the SECCI and the PCE carefully before entering into the Agreement.
ABOUT YOUR PROPOSED AGREEMENT
Your Agreement is for a fixed contract mileage and term as laid out in the pre-contract information (SECCI) and your Agreement. You should take time to consider if these terms are suitable for your own personal circumstances before signing the Agreement.
Your Hire Purchase Agreement is structured with lower monthly instalments and therefore has a higher final Balloon payment (including the option to purchase fee). This final Balloon payment is optional and as such you have the following choices at the end of your Agreement:-
• Pay all the monthly instalments plus the final Balloon payment (including the option to purchase fee) and keep the car; or
• Return the Vehicle to ALD and request that ALD accept the Vehicle and apply any Vehicle equity above the Guaranteed Minimum Future Value (Balloon payment) as a deposit against a different vehicle; or
• Request that ALD buy back the Vehicle in accordance with the provisions of Agreement.
It is important that your Agreement reflects your predicted maximum Contract mileage over the term, if this is not the case you could become liable for excess mileage charges at the end of the Agreement. Additionally, if you choose to return the Vehicle to ALD then you may become liable for additional collection and/or refurbishment charges to return the Vehicle to a condition in line with the BVRLA's Fair Wear & Tear Guidelines.
REPAYMENTS
Details of the amounts payable by you under this Hire Purchase Agreement, including the amounts and due dates for your repayments; the interest rate payable; the term of the Agreement; and the total amount payable by you can be found in section 2 of the pre-contract information (SECCI).
You will repay the amount of credit plus interest by making regular Direct Debit repayments to ALD. The repayment amounts are calculated to make sure that by the end of the term of the Agreement, the outstanding balance under the Agreement is reduced to zero, (provided that you keep up your repayments).
Your Agreement includes a larger final Balloon payment, refer to the section above and your Agreement for further details of your financial options at the end of your Agreement.
Once your Agreement is made, you have a right, at any time, to repay part of the credit early, by giving notice in writing and paying a lump sum to ALD (you may be entitled to a rebate of credit charges for this early repayment). ALD will recalculate and reduce your subsequent regular monthly payments. Please note that as your Agreement has a larger final Balloon payment, that any partial settlement will only reduce your monthly payments and NOT the term of your agreement.
You also have a right to end the Agreement by handing the vehicle back, provided that you have paid at least one half of the total amount payable under the Agreement. However, please note that if you do this ALD have the right to register this Voluntary Termination on your credit file and this could affect you ability to gain credit in the future.
You should study the pre-contract information (SECCI) carefully to make sure that you can afford the repayments and that the Agreement is suitable for you.
WHEN DOES THE AGREEMENT TAKE EFFECT?
You or ALD can decide to withdraw from your credit application at any time before ALD counter sign the Agreement. You will be bound by the Agreement once you have signed it and ALD have countersigned it. However, you do have a right of withdrawal (see withdrawal overleaf).
When you apply for credit we will carry out credit checks from both our own records and from credit reference agencies to help us to decide whether we wish to offer you credit.
Please note that until ALD counter sign your Agreement, thereby concluding the Agreement; nothing in this explanation or the associated pre-contract information (SECCI) / Agreement documentation commits us to providing credit to you.
KEY RESPONSIBILITIES FOR THE VEHICLE
This Agreement is a Hire Purchase Agreement and you will only become the owner of the Vehicle when you have paid all the amounts due to ALD under the Agreement, including the option to purchase fee.
Until you become the owner of the Vehicle:
• You must not sell the Vehicle or give it away
• You must keep the Vehicle comprehensively insured against all risks and for its full replacement value; and
• You must keep the Vehicle in good condition and repair and be able to show that it has been serviced strictly in accordance with the manufacturer's recommendations and any applicable warranty.
Additionally, you must abide by all other terms and conditions as laid out in the Agreement.
If you fail to do this you must compensate the ALD for any loss they suffer as a result of your acts or omissions.
If you choose to return the Vehicle before the end of the Agreement and you have exceeded your pro-rata mileage allowance, you will have to pay an excess mileage charge. Details of the maximum Contract Mileage and charge(s) are shown in the Related Costs section of the Pre-Contract Credit Information (SECCI). In addition you will also be liable for any refurbishment charges necessary in order to return the Vehicle to a condition in line with the BVRLA's Fair Wear and Tear Guidelines.
WHAT HAPPENS IF YOU DON'T MAKE REPAYMENTS?
You should consider carefully your ability to meet the repayment(s) without undue difficulty during your Agreement. You should take into account factors such as your income as well as existing and future anticipated financial commitments and how this could impact on your ability to make the repayment(s) under this Agreement. This Agreement may not be suitable for you if you will need to borrow further or sell other assets in order to meet the repayment(s). If you become aware of a change or potential change in your financial circumstances, please contact ALD immediately on the telephone number show at the end of this document.
If you do not make your repayment(s) in the correct amounts and on the due dates under your Agreement then you could face serious consequences and the following could happen:-
• You may incur default charges, including late payment charges and interest at the rate shown in section (3) of your pre-contract information (SECCI), on any arrears. ALD will send you a notice about these charges.
• We may also send you a default notice, requiring you to pay by a certain date.
If you do not pay by the date specified in the default notice, then we can:
• Demand immediate payment of the outstanding balance of the total amount payable under your Agreement;
• Terminate the Agreement; and
• Demand that you deliver up the Vehicle to us; and you may still have amounts to pay;
• Take steps to repossess the vehicle, however, if you have paid more than 1/3 of the total amount payable ALD will need to obtain a court order to do this.
If we take legal proceedings against you to recover from you unpaid amounts under the Agreement and/or to recover possession of the vehicle, this could result in County Court judgments being registered against you.
ALD would also be able to report your default to credit reference agencies. Your default would be recorded on your credit reference file and could be viewed by other lenders and agency users who search your credit reference file. This may make it difficult for you and other members of your household to obtain credit in the future.
Full details about the way in which ALD uses your personal information and the credit reference agencies with which we share information about you are set out in your proposed Agreement.
YOUR RIGHT TO WITHDRAW
Once you have made your Agreement, you have the right to withdraw from it by the end of 14 calendar days starting with the day after the date on which you received a copy of the concluded Agreement from ALD. You must tell us if you want to withdraw by contacting ALD via the details at the end of this document. You do not have to give us a reason for wanting to withdraw from the Agreement.
Please note that should you choose to withdraw from this Agreement, you are still required to make other arrangements to pay for the vehicle within 30 days of the date of withdrawal.
If you do not repay this debt within the 30 days, we may commence repossession proceedings against you and pursue the debt via the court. Please note that in addition you will be liable for the daily cost of any interest charges applicable until the amount of credit is repaid in full.
To make repayment you must contact ALD on the details at the end of this document and pay us by BACs, Debit card or Credit card (please note we reserve the right to add a 3% credit charge to any payments made by credit card).
If you repay in full, then we will transfer title to the vehicle to you.
ANY QUESTIONS?
If you have any questions about this explanation document, or about your Agreement, or would like further explanation or information, you can phone Affinity Leasing Limited on 084 50 57 57 50, or ALD Automotive Ltd on 0844 600 1407 alternatively you can write to us at Cross Bank House, Cross Bank, Bewdley, DY12 2XB or email docs@affinityvehicleleasing.com or contact ALD at Oakwood Park, Lodge Causeway, Fishponds Bristol BS16 3JA or email at uk-dsproposals@aldautomotive.com.
