Hire Purchase is one of the many solutions that we offer as a finance option at Leodis Financial Ltd.
It means that rather than having to find a huge lump sum to purchase your vehicle, you can spread this over a period of upto 60 months. You will know each month what you have to pay which will help you manage your monthly finances more effectively
You can use your existing vehicle towards a deposit or pay a lump sum in cash (if the car has finance remaining on it, the equity in your existing vehicle once the finance has been settled will go towards the deposit). Usually, the deposit maximum is 50% of the value of your new vehicle. The remainder of the value plus the interest is then calculated over the finance period which is usually between 1 and 5 years and your monthly payment is agreed. At the end of the agreement, once the ‘option to purchase’ fee has been paid, you will own the vehicle rather than having to pay a balloon payment.
You must take on board the below factors when deciding if Hire Purchase is right for you:-
Check that this is affordable versus other finance options available – we can discuss these with you.
Consider whether the payments will still be achievable if your circumstances were to change. If you default or make late payments, this will have an adverse effect on your credit file, which could mean you will struggle to get any type of credit in the future. The vehicle could be at risk of repossession if at least a third of the finance agreement hasn’t been paid off.
Always remember that it’s not until AFTER the final payment (and the option to purchase charge is paid) that the vehicle will own the car.
HERE’S WHY YOU CAN HAVE CONFIDENCE IN LEODIS FINANCIAL
We are an independent reputable finance broker based in the UK and we are approved by SAF. Our team is hand selected so we can therefore ensure they work to the same exacting standards and will work hard to meet your needs for the purchasing of your vehicle. We always put our customers at the heart of our business.
