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Lease Purchase (Hire Purchase with balloon)


Lease Purchase offers lower monthly payments than standard Hire Purchase. At the end of the agreement you have the option to make a final lump sum payment (balloon) to purchase the car in full.

There is a fixed rate of interest but with lower fixed monthly payments because you defer repayment of some of the borrowing. At the end of the agreement you have a number of options including car purchase, re-finance, part-exchange or resale.

Once you have reached an agreement with us to pay an initial deposit, typically between 5–50% of the vehicle price. The deferred balloon element is calculated on the estimated value of the vehicle, which is repaid over an agreed period usually between 1–4 Years, plus a final balloon payment.

Advantages of Lease Purchase

  • Low Deposit – Doesn't tie up personal or business assets
  • Low Monthly Payments – Allowing you to upgrade your vehicle
  • Upgrade Car – Lower payments can help you choose a higher specification vehicle
  • Control – You decide the deposit
  • Fixed Monthly Payment – Makes budgeting simple
  • Flexibility – Settle your loan early
  • Choice – Buy the car, part-exchange it
  • Assets – You gain ownership of car
  • Tax Benefits – Tax allowances for business users
  • VAT Free – No VAT on payments