| Year | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | 3 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 |
| 2022 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 |
| 2023 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | Terminal Pause | |
The contract ends in January 2024
A terminal pause or 'payment holiday' is a period at the end of an agreement (usually a lease agreement) where the customer has finished making all the payments required but remains in possession of the vehicle. The terminal pause period allows the customer to save funds to put towards advance rentals for their next lease 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 made in January 2021.
- 33 more rentals starting in February 2021 and ending in October 2023.
- Terminal pause / payment holiday for 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 2021. The total rentals over the agreement = £ 20,520.