Even those of us who are brilliant at managing our money experience times when our finances are tighter than usual.
If you have a Liberty car loan, we can help to lighten the load with our Flexible Payment Arrangement (FPA). FPA gives you the opportunity to reduce your monthly car loan repayments to as little as a third of your usual repayments during periods when you want to use your money for other things.
When you can use FPA
When and why you use FPA is up to you. However, it can only be requested after the first six months of your car loan term has elapsed, and providing that you have made all your repayments on time. You must give us at least two days’ notice prior to the next monthly anniversary of the car loan’s initial settlement date. Subsequent requests to use FPA will require that you have kept all your repayments up to date during the preceding two months.
How often you can reduce your repayments
| LOAN TERM | NUMBER OF REPAYMENT REDUCTIONS |
|---|---|
| 84 months | 14 repayments |
| 72 months | 12 repayments |
| 60 months | 10 repayments |
| 48 months | 8 repayments |
| 36 months | 6 repayments |
| 24 months or less | N/A |
Using FPA will increase your subsequent regular repayments because the amount of the reduction will be added to your car loan balance and spread evenly over your remaining repayments. Because interest is calculated on your outstanding car loan balance, you may pay more interest over the period of your loan if you use FPA.
The cost involved
To use FPA throughout your entire loan term costs a one-off fee of just $600. An administration fee of $10 is charged whenever an FPA period is exercised.
HOW TO ENQUIRE
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