Hire Purchase With Balloon (Lease Purchase)
Hire Purchase with a balloon offers lower monthly payments than standard Hire Purchase. Instead, at the end of the agreement, you can make a final lump sum payment (or 'balloon') to purchase a vehicle in full.
It's fixed rate finance - but with a lower fixed monthly outlay since you defer repayment of some of the borrowing. At the end of the agreement you have a number of options including purchase, refinance, part-exchange or resale.
The deposit you pay is flexible - typically between 10% - 50% of the vehicle's full price. The deferred balloon element is calculated on the estimated future resale value of the car.
The difference, plus interest, is repaid in equal instalments over an agreed period (12-60 months), plus a final balloon payment.
Why consider Hire Purchase with balloon?
Low deposit - doesn't tie up cash reserves
Control - the asset is yours at the end of the agreement
Lower fixed payments - perfect for budgeting
A better vehicle - lower payments can help you choose a higher specification vehicle
Flexibility - does not compromise your other lines of credit
Tax benefits - you can claim writing-down allowances and interest may be offset against profits
VAT - you reclaim the VAT on the purchase price and there is no VAT on payments
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Provide us with some information about the equipment you want and we'll send you a personalised quotation. -
On receipt of some details of your business, we will arrange a no-obligation credit facility for you, valid for 90 days. -
We will liaise with your supplier and arrange release of funds in time for delivery
Request A Quote
Tell us what equipment you want and we will provide you with a FREE quotation
