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Finance lease end of agreement

Finance lease end of agreement

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Client has been renting some equipent for a fixed term under what looks like a finance lease. The finance company have said that the client can buy the goods at the end of the agreement for £100 plus vat.

However, the Finace company will only sell the goods and issue an invoice to a third party and not my client the hirer. They have suggested she use either a solicitor or accountant (i.e. me) and that that third party should sell the goods to her and invoice her for the same amounty. She can then actually pay the Finance company direct herself.

This seems a strange arrangement. has anyone come across anything similar?

The Finance company say that they cannot invoice the Hirer direct to sell the goods at the end of the terms.

Thanks

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By Anonymous
16th Feb 2010 12:25

Its standard

Done this many times for clients. 

It is standard procedure for a lease agreement.  This will not have been a lease purchase agreement.

Get the lease company to invoice you and get the client to give you an up front payment into your client account, pay the lease company and then invoice the goods on, do remember to invoice your time and bank charges though.

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By richardmeadows
16th Feb 2010 12:29

Standard practice
Yes, this is standard practice for leases (not lease-purchase).

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By rushtonp
16th Feb 2010 12:32

Thanks

Thank you for your comments. That's helpful and re-assuring.

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By cymraeg_draig
16th Feb 2010 14:12

Standard practice

I've temporarily owned various things because of this. I can put my hand on my heart and say I owned a Ferrari (for about 2 hours).

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