A lease purchase is a type of car finance agreement where you can defer up to 31% of the payment to end of the contract, this is referred to as a balloon payment. If you choose to defer part of the cost of your loan as a balloon payment, this payment must then be settled before you can end the agreement. Unlike a PCP agreement, there is no option to upgrade your vehicle or return it to the lender.
- Lower monthly repayments than hire purchase
- You own the car at the end of agreement
- Can defer up to 31% of the payment
- No annual mileage limits
You take out a 60-month lease purchase agreement for a Mercedes A-Class valued at £9500. With an APR of 9.8%, the total amount repayable would be £11,939.20.
You choose to defer 31% of your total loan amount, to the end agreement as the balloon payment.
This means your monthly repayments will be £137.32, with a final balloon payment of £3,700.
Find out how much you can borrow using our car finance calculator.
Representative example: borrowing £7,500 over 48 months with a representative APR of 18.9%, an annual interest rate of 18.9% (Fixed) and a deposit of £0.00, the amount payable would be £223.86 per calendar month, with a total cost of credit of £3,245.06 and a total amount payable of £10,745.06.
Want To Know More?
For more loan options head over to our Hire Purchase, Personal Contract Hire or Personal Contract Purchase pages.
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Lease Purchase
At a Glance
A lease purchase is a type of car finance agreement where you can defer up to 31% of the payment to end of the contract, this is referred to as a balloon payment.
If you choose to defer part of the cost of your loan as a balloon payment, this payment must then be settled before you can end the agreement. Unlike a PCP agreement, there is no option to upgrade your vehicle or return it to the lender.
Benefits of a Lease Purchase Agreement
- Lower monthly repayments than hire purchase
- You own the car at the end of agreement
- Can defer up to 31% of the payment
- No annual mileage limits
Example
You take out a 60-month lease purchase agreement for a Mercedes A-Class valued at £9500. With an APR of 9.8%, the total amount repayable would be £11,939.20.
You choose to defer 31% of your total loan amount, to the end agreement as the balloon payment.
This means your monthly repayments will be £137.32, with a final balloon payment of £3,700.
Find out how much you can borrow using our car finance calculator.
Representative example: borrowing £7,500 over 48 months with a representative APR of 18.9%, an annual interest rate of 18.9% (Fixed) and a deposit of £0.00, the amount payable would be £223.86 per calendar month, with a total cost of credit of £3,245.06 and a total amount payable of £10,745.06.
Lease Purchase FAQs
Want To Know More?
For more loan options head over to our Hire Purchase, Personal Contract Hire or Personal Contract Purchase pages.
Check My EligibilityOur Customers Love Us!
Excellent customer service. Got me a great deal and the car I was looking for! Would highly recommend to anyone!