The contract ends in January 2017
A terminal pause is a period at the end of an agreement (usually a lease agreement) where no payments are required to be made by the customer. This is because the customer has finished making the payments required under the agreement.
A terminal pause is therefore a term that reflects a specific payment profile of a finance agreement.
Terminal Pause Example
Rental in Advance Profile – 3+33 Terminal Pause
First three rentals in January 2014 followed by 33 more rentals starting in February 2014 and ending in October 2016. The customer has a terminal pause of two months.
For example, a three year agreement with a profile of three advance rentals followed by 33 monthly rentals (3+33) of £570 per month. The vehicle is supplied on 1st January 2014. The total rentals over the agreement = £ 20,520.