Hire Purchase

Invoice Price

£12,000.00

Balance Payable

£12,751.20

Total Deposit

£2,400.00

Total Payable

£15,151.00

Amount of Credit

£9,600.00

Representive 

APR

Charges

£2,832.00

Duration of Agreement

60

Acceptance Fee

£199.00

Monthly Payment

£212.52

End Fee

£120.00

1/3 of Total Payment (ii)

5050.33

Total Charges

 £3,151.00

1/2 of Total Payment (i)

7575.50


I TERMINATION : YOUR RIGHTS

You have a right to end this agreement. To do so, you should write to the person you make your payments to. They will then be entitled to the return of the Vehicle and to half the total amount payable under this agreement. If you have already paid at least this amount plus any overdue instalments and have taken reasonable care of the Vehicle, you will not have to pay any more.

ii REPOSSESSION : YOUR RIGHTS
If you do not keep up your side of the agreement but you have paid at least one third of the total amount payable under this agreement, we may not take back the Vehicle against your wishes unless we get a court order. (In Scotland we may need to get a court order at any time). If we do take the Vehicle without your consent or a court order, you have the right to get back any money that you have paid under this agreement.

Who is eligible for Hire Purchase?

All types of customer are eligible for Hire Purchase.

Do customers need to be VAT Registered?

The customer does not need to be Vat registered as there is no Vat associated with the repayments.

Which Finance company will you use?

Our primary credit companies are currently Motonovo, Close Brothers and Anglo Scottish. The Finance Provider we use will vary depending upon the customer personal circumstances & credit rating.

What is Hire Purchase?

Hire Purchase is a hire agreement between a customer and a finance company secured against the vehicle, where the customer has the option to own the vehicle at some point during or after the agreement.

The finance company HIRES the vehicle to the customer for an agreed period of time at an agreed monthly sum.

Will I own the vehicle?

The customer can gain ownership (title to the car) by paying an additional sum called the Option to Purchase Fee.

How much deposit is required?

A minimum deposit of the 20% VAT is required. Additional deposits (over and above the VAT) are usually optional and at the discretion of the customer.

Are there any fees?

Fees are attached to a HP agreement but are declared at onset.

Will my payments change?

Payments are fixed for the duration of the agreement.

Are there any mileage restrictions?

There are no mileage restrictions on a HP agreement.

Who insures and maintains the vehicle?

The vehicle will need to be comprehensively insured for the period of hire & the customer must keep the vehicle in a roadworthy condition.

Will the interest rate change?

The interest rate is fixed for the duration of the agreement.

Can the agreement be settled early?

A HP agreement can be settled at any time by the customer by paying the balance of finance outstanding and Option to Purchase fee to the lender. The lender may allow the customer a rebate of the interest if the outstanding finance balance is settled before the agreement end date. If it is a HP agreement regulated by the FCA, then the minimum amount of rebate will be set out in the FCA’s rules. You can make additional payments & receive a corresponding reduction in interest.

What happens at the end of the agreement?

At the end of a HP agreement, once all the contracted payments have been made, the customer will usually pay the Option to Purchase fee and take legal title to the goods. However, this is a true option. The customer could return the vehicle to the finance company (even though the vehicle has effectively been paid for).

Voluntary termination, also referred to as the Half Rule allows a customer to terminate the agreement & hand the vehicle back to the lender. To do this, half of the total amount repayable in the agreement must have been paid. This is the full price of the car plus the total interest charges & fees.

The vehicle must be in a reasonable condition for its age and mileage & any arrears will also have to be paid.

Can I see a comparison of finance products?

Questions

Finance Lease

Hire/Lease Purchase

Contract Hire

Contract Purchase

Will we own the asset?

No

Yes

No 

Possibly

Is the asset off-balance sheet?

No

No 

Yes

No

Can I have a fixed-term agreement?

Yes

Yes

Yes

Yes

Is the term extendable?

Yes

No

Possibly

Possibly

Can I have a fixed or variable rate? 

Yes

No

No

No

Will future rentals be linked to the future of the asset?

Possibly

No

Yes

Yes

Will the agreement be made on demand? 

No

No

No

No

Is additional security required?

Possibly

Possibly

Possibly

Possibly

Why Apply