Lease Purchase
A fixed rate agreement is much the same as Hire
Purchase, but with a couple of differences:
- The
deposit is mostly referred to as a number of months on signing 1, 3 or 6
or more plus the VAT
- A lump
sum often referred to as a Residual Value or Balloon can be built into the
deal, this gives you
- A lower
monthly repayment, because you are not making capital repayments on the
sum. You would however be paying interest on the deferred amount.
- The
balloon will become due at the expiry of the primary period either
through cash flow or sale proceeds
- A lower
monthly repayment, because you are not making capital repayments on the
sum. You would however be paying interest on the deferred amount.
A deferred sum can be of benefit enabling you to
purchase an item paying for the depreciation value as long as you get the
future market value right! As ever take advice, our advice is to keep the
balloon as low as possible to reduce the charges on the same and try to cover
the future payment from future value otherwise you will be looking to cover any
shortfall from cash flow.
Our approach with advice may cost us the odd deal, in not giving the customer what he thinks he wants but once we have a customer; it is rare that we lose them!
If you would like a quote please call us on 01603 258780
Written Quotes available - All facilities subject to status