What are my contract choices with Lease Purchase?

With Lease Purchase (LP), you make fixed monthly payments over the term of the agreement, with a large final balloon payment due at the end of the term. Unlike PCP, you cannot hand the car back, so LP suits drivers who are committed to owning the vehicle long term. Monthly payments can be lower than PCP or HP, but the balloon payment can run to several thousand pounds, so you need to plan for that cost before the agreement ends.