|
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:
|
1. Keep the machine: |
Pay off the balloon and keep the machine. |
|
2. Buy a new machine: |
Trade-in old machine, trade-in allowance should pay balloon with any surplus being used as a deposit on the replacement. |
|
3. 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. |
|