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mitchel

Arblease how it works

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If its only showing how much you will pay per month and nothing about what it will cost etc - be very careful. Often leasing companies across all industries build in residual values that are inflated just to make the monthly payments look cheap, then depending on what type of lease contract you have that residual value becomes your problem at the end. 

 

Leasing can be handy as an alternative to HP, particularly for those not trading above the VAT threshold. Buy something on HP and you will have to pay the full VAT up front - this is ok for those who can then claim it back on their next return...

On a finance lease, you pay VAT on each monthly payment, so the VAT is effectively spread over the period. 

 

Price-wise, they're generally pretty similar. Can be made whatever monthly payment you want really by adjusting the residual value or balloon. A reputable broker or finance company will make sure your residual is reasonable and sensible.

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9 hours ago, forestboy1978 said:

I've never once had to show ANY accounts for a piece of finance. 

It’s what I was told I’d need to send in by arblease when looking at a new multione, didn’t take it any further as bought a second hand one. But over £25k plus vat they needed accounts.

 

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1 hour ago, LeeGray said:

It’s what I was told I’d need to send in by arblease when looking at a new multione, didn’t take it any further as bought a second hand one. But over £25k plus vat they needed accounts.

 

Ah. Yeah never applied for more than 12k so maybe that's why.

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Needing to supply accounts usually isn't anything to do with the deal size, its to do with how much of an assessment the lender can make of the risk of the customer from the information they have from credit referencing agencies.

If they can't see from a basic search of company or individual then they will either decline it or ask for accounts to support.

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24 minutes ago, ForestryFinance said:

Needing to supply accounts usually isn't anything to do with the deal size, its to do with how much of an assessment the lender can make of the risk of the customer from the information they have from credit referencing agencies.

If they can't see from a basic search of company or individual then they will either decline it or ask for accounts to support.

As previously said I was told I’d need it over 25k, first phone call just to enquire about terms/price.

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2 minutes ago, LeeGray said:

As previously said I was told I’d need it over 25k, first phone call just to enquire about terms/price.

I guess everyone has different criteria - fair enough. I've seen stuff (granted maybe its more on the HP side) for £250,000 accepted by funders without any questions...suppose the easy answer is "it depends".

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23 hours ago, ForestryFinance said:

If its only showing how much you will pay per month and nothing about what it will cost etc - be very careful. Often leasing companies across all industries build in residual values that are inflated just to make the monthly payments look cheap, then depending on what type of lease contract you have that residual value becomes your problem at the end. 

 

Leasing can be handy as an alternative to HP, particularly for those not trading above the VAT threshold. Buy something on HP and you will have to pay the full VAT up front - this is ok for those who can then claim it back on their next return...

On a finance lease, you pay VAT on each monthly payment, so the VAT is effectively spread over the period. 

 

Price-wise, they're generally pretty similar. Can be made whatever monthly payment you want really by adjusting the residual value or balloon. A reputable broker or finance company will make sure your residual is reasonable and sensible.

Indeed, so many folk get sucked into "I can afford those figures per month" but actually  have no idea on the mechanics of the deal they've just signed too.

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