Key Facts – Hire Purchase Agreement
This is a summary of the key facts regarding the Hire Purchase agreement you are considering and does not form part of the full terms and conditions of the Finance Agreement. It is important that you read the terms and conditions relating to the Finance Agreement when you receive them from the Finance Company as they supersede our Order Form. Please also review your payment options and requirements at the end of the lease. If you are unsure how a HP agreement works, please ask or seek advice prior to proceeding.
Select Car Leasing is a trading style of Select Contracts (UK) Limited, and the firm is authorised and regulated by the Financial Conduct Authority FRN 670832. Select Car Leasing are a credit broker not a lender.
Finance Agreement
➢ Contract Arrangement: Your order will be forwarded to a Finance Company. You will sign a separate Finance Agreement to lease the vehicle.
➢ Terms and Matching Details: Verify that the Finance Agreement's contract term, mileage allowance, payments, maintenance options, and excess mileage details align with your Vehicle Order.
➢ VAT: Rentals are VAT-inclusive at the current rate, with adjustments if VAT changes.
➢ Mileage Allowance: Your contract includes a mileage allowance. Excess mileage incurs charges as outlined in your Finance Agreement.
➢ Contract Amendments: Changes to contract mileage or duration may be allowed, subject to Finance Agreement terms.
➢ Fixed Term: The contract is for a fixed term, with no automatic right of vehicle use after the initial term.
➢ Early Termination: Ending the agreement early will incur fees as stated in your Finance Agreement.
➢ Vehicle Ownership: You will not own the Vehicle until all payments, including any final “option to purchase fee” or “balloon payment” (if applicable), have been made.
Vehicle Responsibilities
➢ Vehicle Suitability: Ensure the vehicle on your Order Form meets your requirements.
➢ Warranty: A standard Manufacturer’s Warranty applies from the date of first registration; servicing must follow the manufacturer’s guidelines.
➢ Breakdown Cover: Vehicles come with Manufacturer’s Breakdown Cover from first registration—confirm the duration with the Manufacturer.
➢ Roadworthiness: Keep the vehicle legal and roadworthy.
➢ Insurance: Comprehensive motor insurance is required from delivery until the vehicle's return. Notify your insurer that the vehicle is leased and owned by the leasing company.
➢ Servicing: Adhere to the manufacturer’s service schedule and use a Finance Company-approved garage. Record service updates.
➢ MOT: Obtain a valid MOT three years post-registration or as required by the Finance Agreement.
➢ Maintenance Plan: If included, the Finance Company covers standard servicing, maintenance, and MOT, but you must schedule these services.
➢ Breakdown Cover (Maintenance Plan): The Finance Company provides additional Breakdown Cover under a maintenance plan.
➢ Uneconomical Repairs: The Finance Company can terminate the lease early if repairs become uneconomical.
➢ Pre-Registered Vehicles: Manufacturer Warranty and MOT may expire before vehicle return if contract duration exceeds standard terms.
➢ Road Tax (VED): Included at the rate on the day of signing; subsequent increases are billed separately.
➢ In-car Connected Services: Finance Company may limit support for in-car connected services. Refer to your Finance Agreement.
In-Contract Charges
➢ Late Payments: Delayed payments incur additional charges, including an administration fee.
➢ Penalty Charge Notices: Forwarded to the Lessee for payment, with an administration fee from the Finance Company.
➢ VE103 Form for Travel: Required for taking the vehicle out of the UK; you will need to notify your finance provider at least 14 days prior to your trip (administration fees will likely apply).
