Very much like Personal Contract Purchase on a car, this fixed rate Hire Purchase agreement has lower than usual repayments because of the final balloon payment. At the end there are three options to either keep the machine, trade it in against a replacement or return it.
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Very much like Personal Contract Purchase on a car, this fixed rate Hire Purchase agreement has lower than usual repayments because of the final balloon payment. At the end there are three options to either keep the machine, trade it in against a replacement or return it.

A fixed rate Hire Purchase agreement with lower than usual repayments because of the final balloon payment. In effect this balloon payment represents a significant proportion of the capital that remains unpaid until the end of the agreement. The end of term balloon payment is deliberately set below the estimate of the machine’s future trade value so that this final payment is more affordable whilst making it easier to select a number of flexible options:

  • Keep the machine: Pay off the balloon and keep the machine.
  • Replace the machine: Trade-in old machine, trade-in allowance should pay balloon with any surplus being used as a deposit on the replacement.
  • Return the machine: Return the machine to JCB Finance who will take care of the balloon payment at no extra cost*. Offers protection against any unexpected fall in used machine prices.

*Subject to the machine being returned in an acceptable condition as set out in the addendum and with hourage within the original contracted hourage band. Excess hourage will be charged at a cost per hour figure as stipulated in the agreement.

Benefits:

  • Interest rate agreed and fixed at time of documentation
  • Hedge against inflation and interest rate rises.
  • Low fixed payments
  • Accurate budgeting
  • Flexible end of term options
  • VAT fully reclaimable
  • Tax writing down allowances available including the Annual Investment Allowance
  • Interest charges are tax allowable
  • The machine is yours after the last payment
  • Can be linked to dealer service, repair and maintenance agreements