FAQ's
With Hire Purchase or Car Loan agreements, you get to own the goods by paying a small option to purchase fee with the last payment. You can also sell the goods during the repayment period but you must settle the finance outstanding before or at the time of the sale. We can help with settlement figures. We also are happy to help with the whole process if you require that service, free of charge.
Finance Leases technically never give you ownership, it remains with the finance company. You can sell the goods however, and retain a large proportion of the sale proceeds, typically between 90 and 99%. As the HP above, you can also settle early by requesting a settlement figure. If you never sell the goods, you would be charged a small "peppercorn" rental at the end of the primary period. This is normally an annual charge equal to the previous regular monthly payment. You would be expected to pay this annual charge every year until you get rid of the equipment.
Contract Hire and operating leases give the user no ownership, at the end of the lease you would be expected to return the goods and possibly pay for excess use or mileage and any repair costs to bring the asset up to standard if it is damaged.
Hire Agreements are normally just a rental where the supplier or another third party takes ownership of the goods at the end of the lease. These types of agreements are normally seen when financing IT equipment and copiers.
