Lease Purchase (LP)
This is a more flexible form of purchase agreement for business users and private individuals. The initial deposit and repayment periods can be structured to meet your requirements and budget. A final lump sum balloon payment option is available if you would rather make lower repayments throughout the agreement. The balloon payment is calculated on the anticipated value of the car at the end of the agreement.
What happens next?
At the end of the agreement you then have a number of options.
Option 1 Pay the deferred final balloon payment, then title of the vehicle will then be transferred into your name.
Option 2 Part-exchange the vehicle subject to settlement of your existing credit agreement.
Option 3 Refinance the final balloon payment.
Option 4 Sell the vehicle privately, once the balloon payment has been paid in full.
Features and Benefits
- Flexible deposit and term
- No mileage restrictions, however, balloon payment is based on anticipated future mileage
- Ownership at end of agreement
- Monthly payments are not subject to VAT
- Ability to settle loan early