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- A Hiring Agreement where the vehicle remains the property of the Finance Company.
- The Hirer is responsible for Residual Value (Balloon Rental)
- The Hirer is responsible for all maintenance and Road Fund Licence.
- Title in the Vehicle can never pass to the hirer.
- On disposal of the vehicle, to a third party, the Finance Company will refund to the hirer a percentage of the sales proceeds after deducting the Balloon repayment.
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"In short our commitment is to provide you with the right solution at the right price - everytime" |
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+ Advantages
1. Low initial outlay
2. Low monthly outlay. Hirer only pays for depreciation
and finance charges during the course of lease.
3. Finance charged on VAT exclusive price of new and
qualifying cars.
- Disadvantages
1. No or reduced equity in the vehicle at the end of the contract.
2. VAT on rentals only 50% of which is reclaimable.
3. Vehicles appear on balance sheet as per SSAP 21
4. Hire takes risk of any loss on the sale of the vehicle.
5. Pay interest on outstanding Balloon payment.
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