Lease Purchase Car Finance

A Lease Purchase, also known as a Hire Purchase with a balloon, finances the whole value of the car, but defers a final payment amount until the end of the agreement.

A Lease Purchase allows for lower monthly payments when compared to a Hire Purchase, as well as the ability to have a lower deposit of typically 10-50% of the car’s price. The key difference is Lease purchase is a path to ownership.

Yes, a Lease Purchase agreement can be settled early by paying the remaining balance, including any applicable early settlement fees.

Yes, LP agreements typically have mileage restrictions, as these are used to calculate the final payment or balloon. Exceeding the agreed-upon mileage may result in negative equity at the end of the agreement or if the car is settled early.

Modifications to a car under Lease Purchase finance may be allowed, but it's advisable to check with the finance provider to ensure compliance with terms.

Yes, you can typically trade in your car during a Lease Purchase agreement. The trade-in value can be used to cover the balloon payment or reduce it.

Lease Purchase requires a deposit and fixed monthly payments, like leasing. At the end of the term, you have the option to buy the car by paying a predetermined balloon payment.

At the end of a Lease Purchase agreement, the balloon payment must be paid. The car can be sold to cover this payment if needed, with any positive equity being kept. Alternatively, the balloon can be re-financed, starting a new agreement on the vehicle.

The balloon payment in a Lease Purchase is a large final payment due at the end of the agreement, allowing you to have lower monthly payments and an option to own the vehicle outright.

Lease Purchase Car Finance

What is Lease Purchase Car Finance?

Benefits of Lease Purchase Car Finance

Low Deposit

Set Monthly Payments

A Superior Vehicle

Flexibility

Ownership

Tax Benefits

Relevant Articles

9.9% APR

FAQs

Lease Purchase Car Finance