Hi all,
i’ve been hearing from many vendor finance people that lease options are generally not that great as when you go to the tribunal you have a higher chance of not coming out on top and that instalment contracts are a better way to go as they are better protected by the NCCP.
i was wondering if there was anyone that does vendor finance in qld. and what there THOUGHTS were on the topic. if you had a credit license would you just stick to instalment contracts or would you still do both? and in the repossession stage how expensive has it been through the tribunal when using a lease option?
Cheers,
lease options are generally not that great as when you go to the tribunal you have a higher chance of not coming out on top
Oh? What issues are you hearing? The worst I’ve heard is that sometimes the vendors must have the option sums previously paid to be considered as credits towards rent. Not pleasant but not too bad, if things got as bad as getting the parties to NCCP.
Ethan | Terrapodean
http://www.terrapodean.com.auMake Home Happen
From the people I know, the majority of VF transactions in QLD have long been Lease Options. Done with a reasonable amount of due diligence very few are going to end up anywhere near court anyway.
The name of the legislation you mention should tell you how you will be treated by the law. national CONSUMER credit PROTECTION act. The legislation tells you of a raft of compulsory compliance processes. It does not provide you with them or give you – the business – guidance. its not written for the business, its written for the consumer. If you end up with a complaint with the EDR schemes, you can count on rough treatment as well.
There is a good and not so good reasons for using both.
It really is only 1 person telling us how bad LO’s are. Look past all the crap and make your own decision. Go to a VFA meeting and ask people that do them, skip the hearsay.
Dave Siacci
Vendor Finance/Terms Property on FacebookIt really is only 1 person telling us how bad LO’s are
Who is that?
Ethan | Terrapodean - Make Home Happen
http://www.terrapodean.com.au
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Hi Ethan
The following may help:
https://vendorfinanceinstitute.com.au/should-all-home-buyers-get-national-credit-code-protection/In short, I believe that, if all home buyers using traditional home loan finance get the protection of the National Credit Code, then all consumer, residential home buyers should get this protection, no matter what sort of finance they’re using. Unfortunately Lease/Options don’t provide that protection.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
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