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Can anyone tell me the difference between a lease agreement and HP?
In may 2005 I used kudos to purchase a vehicle, I told them what I wanted, they found it and set up the finance. They told me that because I am self employed and VAT registered a lease agreement would suit me as VAT would be added on top of each monthly payment and I could claim back a % of the VAT. I would also be able to change the car when ever i wanted to. I took the agreement over 50 months and paid a deposit.(i would prob have changed vehicle every 2 years) After 13 months my situation changed and i was nolonger self employed and my new job could not support the lease. I wrote to them and told them i was terminating the agreement and why. They then wrote back saying that they were terminating the agreement and I should send them £18000 now.
I handed the vehicle over which was taken to auction and sold for £5000 less than it was worth in the auto trader ads. Anyway this is what they say i owe and how they arrived at it:-
FUTURE RENTALS:- £18483.16
MINUS TERMINATION DISCOUNT OF:- £940.12
PLUS FEES:- £350.00
PLUS ARREARS:- £903.88
SUB TOTAL:- £18796.92
MINUS PROCEEDS OF SALE:- £11700
TOTAL NOW OWED:- £7096.92
At the moment they are accepting a monthly payment of £48 which is a drop from £384
They have had around £7200 off me and they sold the car for £11700 which totals £18900. The car was £21000 to by at my local dealer.
please, please, please can anyone shed some light on my situation.
With a lease, you are hiring the vehicle for the duration of the lease, while with hire purchase, you have the option to purchase the goods at the end on payment of the option fee.
If the agreement requires you to pay over £25000, it will not be regulated by the Consumer Credit Act - otherwise it ought to have the heading "Hire Agreement Regulated by the C C Act".
On the agreement it only has lease agrement writen at the top. On my credit file it is shown as a balloon lease. I am sure it was refered to as lease finance. It is not just a simple lease. The vehicle was £21000 new but all the payments come to £26800.
On the lease it shows deposit + 48 monthly payments + a massive payment. But im sure there is a secondary period to purchaise the vehicle. If so I have been miss advised on which option would suit me as I wanted to be able to walk away at the end or pay balloon, not pay two of them.
Lease Agreement
and sold for £5000 less than it was worth in the auto trader ads. Anyway this is what they say i owe and how they arrived at it:-
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