As long as you make all monthly payments with lease-sale, you will own your vehicle at the end of your contract. Leases usually take between 2 and 5 years, the last 3 most common years. Under a lease-sale agreement, the consumer does not own the goods until after the payment of the last tranche, although he has made full use of the goods throughout the repayment period. However, if the consumer has paid a third or more of the total rental costs, the owner cannot take back the goods without taking legal action. Each deposit paid at the beginning of the agreement or the value of a trade-in add up, for example, in the calculation of a third of the cost. These contracts are most often used for goods such as cars and high-quality electrical appliances, for which buyers are unable to pay directly for the goods. As with other types of credit, when entering into an HP contract, your financial firm sends details of the repayments you make to a credit reference agency. Learn more about the information in your credit history. To be valid, HP agreements must be written and signed by both parties. You need to clearly state the following information in an impression that everyone can read effortlessly: Most auto loans offered by garages are lease-to-lease loans. Consumers may also be offered rental credits when purchasing furniture, computer appliances or electroelectric goods.
Leasing is a contract by which a person rents goods in installment payment for a period of time and may hold the goods at the end of the contract if all tranches are paid. In the event of specific consumer complaints against a financial company linked to a lease, consumers should first refer their complaint to the financial company. If they are not satisfied with the result, a formal complaint can be lodged with the Financial Services and Pensions Ombudsman. The Ombudsman has the power to compensate the consumer for violations of his rights or in case of evidence of abusive treatment. Rental purchase is available for new and used cars. If you want to keep a used car for several years, HP might be the best option, as your deposit and monthly payments will cover the total cost of the car and you would pay less interest overall than with an equivalent PCP agreement. Since you own the car at the end of the contract, you can keep it, sell it or exchange it for another car. You`ll find examples of how the half-rule works in our brochure on the end of a lease. The contract usually includes the condition that the goods do not belong to you until you have paid the last installment and the lender can take back the car if you fall back with the payments. If you are thinking of buying a used car, always check that the car is not under an existing financing contract. If this is the case, the person who is trying to sell the car does not own it and may not have the right to sell it to you. There are companies that register vehicles that are subject to HP agreements.
A surcharge is charged for this service. Learn more about the checks you need to do before you buy a car. The « half rule » is a consumer law that allows you to return your car to the bank that lent you the money if you paid half the rental price.