Mercantile Credit Rental Scheme
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RENTING plans for vehicles have 1.‘ been introduced by the Mercantile Credit Co., Ltd., 246-250 Regent Street, London, W.1. That for goods vehicles of up to 30 cwt. capacity calls for an initial payment of 33 per cent, of the invoice price, representing nine months' rentals in advance, and 11 per cent. of the balance is payable by three monthly rentals commencing from the 10th month of the agreement.
• In the second year, the rentals amount to 40 per cent, of the invoice price and in the third year to 35 per cent. Thereafter a nominal rental of 3 per cent. is payable. Vehicles of over 30 cwt. involve an initial payment of 15 per cent. of the invoice price, and equal monthly rentals amounting to 35 per cent. each year are payable for three years.
Upon termination of hire, the dealer is given the first option on the vehicle, and the sum realized on sale is paid to the hirer less a predetermined value as a refund of hire charges. The predetermined value is calculated so that a vehicle stands at 60 per cent. of the list price, including purchase tax, at the end of the first year, 32 per cent. at the end of he second year, and nil at the end of the third year,