Saturday, 29. October 2011
Lots of lenders and brokers are starting to quote lease rentals based on 6 rentals in advance in order to make the monthly rentals appear low. It also helps with underwriting as the higher the initial rental, the lower the risk. However, I still try to stick with 3 rentals in advance which may make the monthly cost look high but it makes the initial rental Read more »
Wednesday, 29. July 2009
Years ago when I first started providing contract hire we would provide terms that would include 3 rentals in advance followed by 21 payments, if a 2 year deal, or 33 payments if a 3 year deal. This meant that there were no payments in the last 2 months. As a result many customers would set aside the money that they would normally pay per month in preparation for the initial rental on the next contract. However, some brokers and lenders realised that if they spread all the payments over the 24 months or 36 months they could Read more »