Lease Purchase

Lease Purchase is a purchase product suited to customers seeking long-term ownership, whilst looking to reduce their monthly repayments. Deferring an agreed amount to the end of your agreement allows you to reduce your monthly repayments. Deposits can be as little as one monthly payment.

Lease Purchase - cost of your vehicle infographic

How does Lease Purchase work?

Once you have chosen your vehicle, you need to work out how much you can afford as an initial payment, how long you want your agreement to be, and how many miles you drive each year. 

This is then used to calculate your monthly payments and final balloon payment. 

When your agreement comes to an end you need to pay the final balloon payment in order to keep the vehicle, or trade in your vehicle to contribute towards paying off the balloon payment.

Lease Purchase is different to Solutions PCP as your final payment is not optional, meaning you have less options at the end of your agreement.


The benefits of Lease Purchase

 You can own the vehicle

When you have made all the repayments, including the final balloon payment at the end of the agreement, then the vehicle is yours to keep and continue enjoying. 

Lower monthly payments 

By deferring a chunk of the amount you finance to the end of the contract, it means your monthly payments will be lower than if you spread the whole cost across the months.

Ability to financially plan

As you can break down the cost of a new vehicle into manageable chunks you can plan with confidence for the next 3-5 years. 

Would Lease Purchase suit me?

The balloon payment that comes as part of a Lease Purchase agreement suits certain lifestyles, It may be the best option for you if:

  • You want to defer some of the cost of the vehicle to the end of the agreement.
  • You want to own the vehicle.
  • You want lower monthly repayments.
  • You want to spread the cost of a new vehicle.

The end of your agreement

At the end of your contract you have the following 3 options: 

  • Keep the vehicle

    You will need to pay the final balloon payment and the option-to-purchase fee, the vehicle then belongs to you. This will be done automatically so if you want to keep the vehicle you do not need to do anything, once the final payment has been collected by direct debit we will close the agreement and send you a final clearance letter. 

  • Part exchange your vehicle for a new one

    You can part exchange the vehicle to contribute towards paying your final balloon payment. Any shortfall in the part exchange value and final balloon payment will need to be covered by you, but any excess can be used towards a deposit on a new vehicle. 

  • Refinance your final 'balloon' repayment

    If you want to keep your vehicle, you can choose to refinance your final balloon repayment over 12-60 months, subject to the age of your vehicle. At the end of your refinance contract you will pay the option to purchase fee and take full ownership of the vehicle. It is important to note that this will result in a new finance application and credit check being performed. 


Financing that works for you

Choose the best finance package for you with our simple guide to the various options available.

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