A common way of getting more car for your money, lease purchase works in a similar way to hire purchase. You pay your deposit to the dealer, we pay the remainder and you make monthly payments on a finance agreement with a final lump sum ‘balloon’ payment at the end. You must pay this final balloon to the finance company or sell the vehicle to cover the balloon payment.

Example:lease purchase

Used Range Rover Sport with a purchase price of £30,000.00

Your preferred deposit of £5,000

We’ll finance the remaining £25,000

Repayable by 36 monthly payments at £558.62

And a final balloon payment of £10,000.00


Most finance companies will have document fees payable with their agreements – typically around £150 with the first and last payments. These are taken into account when calculating your APR.

Why choose this finance agreement?

Choose Lease Purchase if you are looking to keep your monthly payments to a minimum and are happy to take the risk on the vehicle’s resale value. Monthly payments are usually lower than a traditional hire purchase, however you will have less equity at the end of the agreement.

What can I finance on lease purchase?

New and used cars, up to 5 years old at the beginning of the agreement and up to 9 years old at the end.

Who owns the car?

The finance company will be the legal owners of the car until all payments are made, but your name will appear on the vehicle registration document (V5) as the registered keeper.

Can I pay more per month to reduce my balance?

Yes you can – a conditional sale contract purchase agreement is very flexible. You can if you wish pay additional lump sums at any time and reduce your monthly payments, reduce the final balloon payment. The total interest payable is recalculated and reduced if you do pay lump sums.

I want to change cars, but I haven’t finished paying for it yet.

No problem, you can settle your finance agreement at any time and benefit from a regulated settlement figure which will take into account a rebate of interest charges not payable. If you’re part-exchanging the car then we can settle the finance for you as part of a new finance agreement on your next car.

I’m at the end of my contract and I don’t want to keep the car.

You’ll need to sell the car to cover the final balloon payment.

I’m at the end of my contract and I do want to keep the car, but I can’t afford the balloon.

We can re-finance the final balloon payment for you on a straight hire purchase term.