In the leasing industry the “normal” payment profile is 3 initial rentals in advance. A higher initial payment will bring the monthly payment down and a lower initial payment will higher the monthly payment.

Examples of initial payment.
If a business takes out a lease on a BMW based on a 3+35 payment profile at £350 +vat per month the total payment at the end of the lease will be £13,300 + vat (38 x £350 + vat). Some different initial payment profiles based on this example are as follows:

1. 1. 3 Initial payments

• • • Initial payment is 3 x £350 + vat = £1050 + vat
    • Monthly payment is 35 x £350 + vat
    • Total payment is 38 (3+35) x £350 + vat = £13,300 + vat

1. 2. Initial payment of £2,000 + vat – for customers who want a lower monthly payment

• • • Initial payment is £2,000 + vat
    • Monthly payment is £322.86 + vat (£13,300 + vat – £2,000 + vat / 35)
    • Total payment is £2000 + vat + (35 x £322.86 + vat) = £13,300 + vat

1. 3. 1 initial payment – for customers who want to have a lower initial rental

• • • Initial payment is 1 x £350 + vat = £350 + vat
    • Monthly payment is £370.00 + vat (£13,300 + vat – £350 + vat / 35)
    • Total payment is £350 + vat + (36 x £370 + vat) = £13,300 + vat

Please note that the above examples are just for illustration purposes and to be used as a guideline – please obtain a written quote for all different payment profiles that you require.