Guide

Decide whether to lease or buy assets

Choosing a leasing company

The types of companies that offer hire purchase and leasing contracts include:

  • subsidiaries of major UK banks
  • providers owned by manufacturers, such as car manufacturers
  • non-UK banks
  • independent finance houses
  • equipment suppliers
  • members of the Finance & Leasing Association (FLA)

When assessing the most appropriate leasing company to use, make sure:

  • the provider is a reputable company, preferably a member of the FLA
  • your contract corresponds with any verbal or written quotations
  • the period for which you need the asset is covered by the length of the leasing agreement
  • you are aware of any financial penalties that may be incurred if you wish to end the agreement early
  • the equipment you are leasing is new
  • you have read the contract carefully before signing it - checking the total cost, the period of hire and notice periods
  • you understand all the contract terms and conditions, and charges