Hire Purchase is a way for you to spread the cost of buying an asset over a number of years. You will have to pay an initial deposit and can then spread the rest of the cost over the term of the agreement. You will not own the asset until you have repaid the amount due under the agreement in full and paid the final Option to Purchase Fee (does not apply to CCA regulated agreements), but you will always have possession and be responsible for it. More on Hire Purchase.
A Conditional Sale agreement is an agreement for the sale of goods under which the title remains with the seller of the goods until the purchase price of the goods has been paid in full and the buyer has complied with the other provisions of the conditional sale agreement. The purchaser is contractually committed to buying the goods.
Your agreement type is determined by whether you meet the criteria for being regulated under the Consumer Credit Act 1974 (CCA). These include: the amount you’re looking to borrow, your business type, and whether the asset you are buying is for business or private use.
You may be able to continue leasing the goods for a secondary annual rental. Or you could act as our agent and sell the asset (conditions apply). We'll send you a letter with more details nearer the time.
Your finance agreement is confidential. However, if you provide us with written consent we can discuss it with your nominated person.You may have a short period of time to cancel or withdraw from the agreement. This will depend on whether your agreement is regulated by the Consumer Credit Act 1974 (CCA).
Please check the terms and conditions under the "Your Rights" section of your agreement. It'll tell you how to cancel your agreement should you be entitled to.
If you have a Hire Purchase or Lease purchase agreement you’ll pay a standard option to purchase fee. This transfers legal ownership from Lombard to you. It will be taken as part of your final monthly payment. You and your Relationship Manager will agree the amount in advance.