BUSINESS FIXED - CEILING FINANCE
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• Foden Trucks' finance subsidiary — Paccar Financial — has reintroduced its Flex-Plan financing scheme first launched last year.
The new plan has the same basic features as the original, but now offers guaranteed first-year interest rates of 9%. In the second and subsequent years, up to a maximum term of five, rates are fixed at Barclays' base rate plus 3.5%, up to an upper ceiling of 15%. Should rates rise above this overall level, the customer pays no extra interest.
There is no lower rate limit, so if interest rates fall, the customer still benefits according to Paccar Financial (0270 763244). The special low-rate Flex-Plan scheme applies to all Foden truck orders received by July 15, scheduled for delivery to the operator before September 15, 1986.
Paccar Financial's managing director Ken Badger says "The scheme offers real interest savings for operators who order now. At the maximum interest rate, customers who repay over two years are actually borrowing at 10.5% true rate — a full point below normal bank overdraft rate. Even on a three-year term, the cost of finance is no more than buying on overdraft."