Lease hire or HP?

[Rich Rule]

Big J I have just had the calculator out and I can save you £4'000 on that vehicle over the 5 years by doing it HP. PM me if you want to sort some paperwork out. With the montly repayments at 342, so almost identical. Can save you even more if you can pay 450 a month (no VAT on monthly payments too)

 

Benefits are you can sell it when you like and settle, pay it off when you like to save the interest. Give it back after half the agreement with no liability if business goes a bit wrong. You also own it at the end etc etc.

 

One of the best things about HP is its flexibility. If you wanted a defender and a mog in a year it is easy to change with no penalties to worry about. Business are always changing. Swapping the equipment to suit jobs contracts etc is a lot easier with HP.

 

Cheers

 

Jonathan

 

P.S I you wanted one a year old at about £16,000 +vat the saving over the period will be about 9k over having a new one but you will factor a little in for servicing, tyres, MOT etc

 

I have pretty much the same deal as detailed in the quote by BIG J. I pay 307 PCM on HP over the same period.

 

I would much rather go for HP over LP or contract hire.

[Big J]

Big J I have just had the calculator out and I can save you £4'000 on that vehicle over the 5 years by doing it HP. PM me if you want to sort some paperwork out. With the montly repayments at 342, so almost identical. Can save you even more if you can pay 450 a month (no VAT on monthly payments too)

 

Benefits are you can sell it when you like and settle, pay it off when you like to save the interest. Give it back after half the agreement with no liability if business goes a bit wrong. You also own it at the end etc etc.

 

One of the best things about HP is its flexibility. If you wanted a defender and a mog in a year it is easy to change with no penalties to worry about. Business are always changing. Swapping the equipment to suit jobs contracts etc is a lot easier with HP.

 

Cheers

 

Jonathan

 

P.S I you wanted one a year old at about £16,000 +vat the saving over the period will be about 9k over having a new one but you will factor a little in for servicing, tyres, MOT etc

 

I'm not sure how it's possible for it to be cheaper than the price quoted to me. I worked out the payments versus the new cost of the vehicle and the end price, and the percentage interest over the 5 year period is so low it's laughable.

 

Unfortunately, perhaps, the vehicle is already ordered though, so I think that any such alternative arrangements will have to wait until the next time

[Jonny69]

I'm not sure how it's possible for it to be cheaper than the price quoted to me. I worked out the payments versus the new cost of the vehicle and the end price, and the percentage interest over the 5 year period is so low it's laughable.

 

Unfortunately, perhaps, the vehicle is already ordered though, so I think that any such alternative arrangements will have to wait until the next time

 

One reason I may be cheaper is that I am pricing a vehicle with full discount etc from a mate that deals in 4x4 (rang him earlier for an up to date price) Not sure exactly what you have paid for the car, their may not be much in it.

 

The thing that people forget is that the car industry is still in huge trouble (despite what dealers will tell you) so deals like BIGJ have are about because there are so many cars sat about in fields they are itching to shift steel.

 

I do have to admit that your agreement sounds better than most contract hire agreements I have ever seen. For future reference you can put balloons on hp deals and vary the percentage to suit the customer and residual value of the assets. Balloons generally range from 5-45% and can really help a new business by keeping the repayments lower. Also with variable rate deals you can increase/decrease your monthly repayments depending on how business is going. Have a good month, pay of 2k, not such a good month keep the money in the bank a pay off the minimum amount.

 

I hope it all goes well for you:001_smile:. Let me know next time, will try to help with some more detail before hand. Stay safe.

 

Cheers.

 

Jonathan

[Big J]

Thanks for the continued info - very interesting!!

 

If nothing else, I would at the very least have to let you quote me, what with such an excellent and trustworthy name and all

 

Jonathan

[Pat Ferrett]

I've just read this thread and now I've got a head ache! thanks you lot