Clean It Up

UK Window Cleaning Forum => Window Cleaning Forum => Topic started by: andy1975 on April 30, 2011, 07:20:36 pm

Title: lease rentals
Post by: andy1975 on April 30, 2011, 07:20:36 pm

hi, im interested to know if anybody has gone through this as ive been paying for 3 years thinking its all over next month to only get a letter saying the system is not mine and if i want to continue using it need to carry on a new agreement.if i decline then i suppose they come and take it away,and then the letter says i will have the chance to buy it.well i thought i was already doing this.looks like ive been done.when i brought it from ionics i asked will it definetly be mine, oh yeah they said.know have to suffer till tuesday to get some answers

Title: Re: lease rentals
Post by: colin purewater on April 30, 2011, 07:46:04 pm

lease rental??? its in the title mate you dont own some thing you rent

Title: Re: lease rentals
Post by: AshWhite on April 30, 2011, 08:03:32 pm

You need to enquire about what's called a "peppercorn" payment. This is when you pay a nominal amount (usually between £1-£100) and get to keep the equipment either longer term or indefinately - the value of this payment might be decided by the supplier.

The advantage of lease hire is not the eventual ownership, but rather the fact that the payments are tax deductible - your accountant should be offsetting them against your profit.

Hope this helps, all the best,

Ash

Title: Re: lease rentals
Post by: simp on April 30, 2011, 09:35:48 pm

I had the same thing with my system.
I ended paying £175 + vat to transfer over the title into my name.
Is it through Kennet? If so just call them, I had no bother.

Title: Re: lease rentals
Post by: JamesLord on April 30, 2011, 09:50:06 pm

We have just leased through kennets and I emailed them to understand this, this is what they sent me s hope it helps explain it.

With regards to end of lease you have 2 options,
 
Option 1 would be to pay a peppercorn rental that is equal to 1 monthly rental per year for an additional 2 years then fiance company would right off their ownership of the asset.
 
Or
 
Option 2 (which most people do) you can sell the vehicle to a 3rd party and retain 95% of the sale proceeds, so as explained  after your 60 payments you will send a copy of the sale invoice along with a cheque for 5% of the sale price. So fro example if the vehicle is worth £800 after 5 years you would have to send a cheque for £40+vat to the finance company along with the invoice for £800 for them to pass title of the goods across.

Title: Re: lease rentals
Post by: andy1975 on April 30, 2011, 11:22:02 pm

thanks a lot,it is through kennet and i will be making enquiries on tuesday