Lease purchase is great if you’re seeking to own the vehicle in the long-term whilst looking to minimise your monthly cost in the short-term. With lease purchase you benefit from lower monthly payments than Hire Purchase (HP), thanks to the option of deferring an agreed amount (known as a ‘Balloon’ Payment) to the end of your contract. Once your balloon payment has been settled, the car is all yours. Whether you're an individual looking at a lease purchase for a car, or a business looking for van lease purchase, simply complete our quick, no-obligation Application Form, and a customer adviser will be in touch.
- Flexible deposits
- Lower monthly payments
- Fixed finance budgeting
- No mileage limits
- You own the car at the end of the agreement
Lease Purchase Example
You’re looking to purchase a Mercedes A-Class valued at £9,500, so you opt for a 48-month lease purchase agreement.
You have a £500 deposit, so the amount of credit required is £9,000.
Combined with an APR of 9.8%, the total amount payable will be £10,830. You choose to defer 20% of the amount owed, to the end of your contract as a balloon payment.
You pay 48 monthly payments of £195, followed by a balloon payment of £2,076. Once the final payment has been made and any outstanding fees from the lender have been settled, the car is yours.
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.
You’re eligible for lease purchase if you’re aged between 18-75 and hold a full UK driving licence. The easiest way to check your eligibility is through our quick and easy Eligibility Check. You’ll receive a decision within minutes, and it won’t affect your credit score.
Lease purchase may be suitable if you’re looking to own the vehicle at the end of your contract but want to keep your monthly payments as low as possible. Unlike Personal Contract Purchase (PCP), you have the flexibility to choose the amount you wish to defer - within the lender's criteria of a balloon payment, and you’re not restricted by mileage limits. At the end of the contract, to own the vehicle, you have the option to pay the final Balloon Payment or refinance it; there’s no option to return it to the lender.
Hire Purchase (HP) and lease purchase are similar in the sense that both provide easy budgeting through affordable monthly repayments. Both options grant you ownership of the vehicle at the end of your contract once the final payment has been made. But where hire purchase divides the total loan amount into equal monthly repayments, a lease purchase option allows you to defer part of the cost to the end of your agreement as a Balloon Payment.
A deposit is not always required, but it is an effective way of reducing your monthly repayments. And if you don’t have the funds to hand for a deposit, you can always use your current vehicle in Part-Exchange. Trading in your car removes the hassle of selling it yourself and when your new car arrives it helps make for a smoother transition switching from one to the other.
Why not find out how much your vehicle is worth using our Car Valuation Tool.
Having a good or excellent credit score will certainly help your application, but you can still get a lease purchase agreement with a less-than-perfect credit score. Creditplus also work with a number of lenders who offer tailored finance packages for individuals with a bad credit history, even if you’ve been refused car finance elsewhere. Check Your Eligibility without affecting your credit score and receive a decision in just a few minutes.
Want To Know More?
For more loan options head over to our Hire Purchase, Car Leasing or Personal Contract Purchase pages.
Check My Eligibilityor call us on 0333 6000 290
Our Customers Love Us!
Excellent customer service. Got me a great deal and the car I was looking for! Would highly recommend to anyone!
Kyle, Kidwelly
This is the second time I’ve used Creditplus to buy a car, and to be honest, I wouldn’t really do it any other way.
Sarah, Midlothian
Clear and helpful throughout the process. Really pleased and looking forward to driving my new car.
Sian, Liverpool
At a Glance
Lease purchase is great if you’re seeking to own the vehicle in the long-term whilst looking to minimise your monthly cost in the short-term. With lease purchase you benefit from lower monthly payments than Hire Purchase (HP), thanks to the option of deferring an agreed amount (known as a ‘Balloon’ Payment) to the end of your contract. Once your balloon payment has been settled, the car is all yours.
Whether you're an individual looking at a lease purchase for a car, or a business looking for van lease purchase, simply complete our quick, no-obligation Application Form, and a customer adviser will be in touch.
Advantages of a Lease Purchase
- Flexible deposits
- Lower monthly payments
- Fixed finance budgeting
- No mileage limits
- You own the car at the end of the agreement
How Does Lease Purchase Work?
Lease Purchase Example
You’re looking to purchase a Mercedes A-Class valued at £9,500, so you opt for a 48-month lease purchase agreement.
You have a £500 deposit, so the amount of credit required is £9,000.
Combined with an APR of 9.8%, the total amount payable will be £10,830. You choose to defer 20% of the amount owed, to the end of your contract as a balloon payment.
You pay 48 monthly payments of £195, followed by a balloon payment of £2,076. Once the final payment has been made and any outstanding fees from the lender have been settled, the car is yours.
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
You’re eligible for lease purchase if you’re aged between 18-75 and hold a full UK driving licence. The easiest way to check your eligibility is through our quick and easy Eligibility Check. You’ll receive a decision within minutes, and it won’t affect your credit score.
Lease purchase may be suitable if you’re looking to own the vehicle at the end of your contract but want to keep your monthly payments as low as possible. Unlike Personal Contract Purchase (PCP), you have the flexibility to choose the amount you wish to defer - within the lender's criteria of a balloon payment, and you’re not restricted by mileage limits. At the end of the contract, to own the vehicle, you have the option to pay the final Balloon Payment or refinance it; there’s no option to return it to the lender.
Hire Purchase (HP) and lease purchase are similar in the sense that both provide easy budgeting through affordable monthly repayments. Both options grant you ownership of the vehicle at the end of your contract once the final payment has been made. But where hire purchase divides the total loan amount into equal monthly repayments, a lease purchase option allows you to defer part of the cost to the end of your agreement as a Balloon Payment.
A deposit is not always required, but it is an effective way of reducing your monthly repayments. And if you don’t have the funds to hand for a deposit, you can always use your current vehicle in Part-Exchange. Trading in your car removes the hassle of selling it yourself and when your new car arrives it helps make for a smoother transition switching from one to the other.
Why not find out how much your vehicle is worth using our Car Valuation Tool.
Having a good or excellent credit score will certainly help your application, but you can still get a lease purchase agreement with a less-than-perfect credit score. Creditplus also work with a number of lenders who offer tailored finance packages for individuals with a bad credit history, even if you’ve been refused car finance elsewhere. Check Your Eligibility without affecting your credit score and receive a decision in just a few minutes.
Want To Know More?
For more loan options head over to our Hire Purchase, Car Leasing 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!
