Are Easy Financial's installment loans a good deal? (CBC Marketplace)
Uneasy Money | Originally broadcast February 27, 2015. »»» Subscribe to CBC News to watch more videos: ...
Auto Finance Contracts: The Fed Box Explained
http://www.topsecretautos.com The Fed Box on an automotive retail installment contract is extremely important to understand. It gives you a way to make sure ...
A retail installment sales contract agreement is slightly different from a loan. Both are ways for you to obtain a vehicle by agreeing to make payments over time. In both, you are generally bound to the agreement after signing. A loan is a transaction between you and a bank or other lender for money ...
For example, a consumer enters into a retail installment contract when she purchases an appliance on an installment plan or a car with a loan that has a repayment plan that fixes the number and amount of payments.
There are many differences between a loan and a retail installment sale. To my mind, failing to use the proper term for the transaction can lead to confusion. And that can lead to problems later, especially for financial institutions that service both purchase money loans and retail installment sales.
With an installment loan, you borrow once (up front) and repay according to a schedule.Mortgages and auto loans are typical installment loans. Your payment is calculated using a loan balance, an interest rate, and the time you have to repay the loan. These loans can be short-term loans or long-term loans, such as 30-year mortgages.
Examples of traditional installment loans similar to retail installment contracts are home mortgages, car loans and even personal loans. With retail installment contracts, you can spread the cost of an item over a longer period of time instead of paying a large amount all at once.