Lease purchase

Lease purchase definition

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 lease purchase

Lease purchase is the ideal option if you want to lower your monthly payments by deferring part of the cost to the end of the agreement.

Apply online today for a no obligation quote, without affecting your credit score.

Why choose lease purchase?

Flexible deposit options to suit you

You choose the length of the finance agreement

Lower monthly payments

Fixed payments for easy budgeting

You own the car at the end of the agreement

How does lease purchase work?

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.

Apply online today for your free no-obligation quote

Terms and conditions apply. Subject to status, application and credit acceptance.

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.

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