Rates from as low as 8.9%
Lease purchase is vehicle finance that combines an initial payment (this can be zero deposit), fixed monthly instalments and a required final balloon payment. It can suit businesses that want to own a vehicle while keeping monthly repayments lower than an equivalent agreement without a balloon. As an FCA-authorised credit broker, we compare business car finance options from our panel of lenders and give you a dedicated account manager to explain the costs and support your application.
Get a free, no-obligation quote today. Call 0161 968 3449 or complete our enquiry form with your vehicle details and preferred budget.
Part of the vehicle’s cost is deferred until the end of the agreement. You make an initial payment, followed by monthly instalments over the agreed term. The balloon payment then becomes payable on the final date.
Your quote sets out the initial payment, monthly repayments, interest rate, fees and balloon amount. Ownership transfers after every required payment has been made and the agreement’s ownership conditions have been met.
For businesses comparing business hire purchase with a balloon-based agreement, the payment structure is an important difference. Standard HP usually spreads the balance across the monthly instalments without leaving a large final sum.
Deferring part of the balance can reduce monthly repayments, but it does not remove that debt. Interest normally applies to the balloon throughout the term, so a lower monthly figure does not automatically mean a lower total cost.
A manageable monthly payment matters, particularly when your business also needs funds for wages, stock and equipment. However, the final payment needs a place in your budget from the start.
Think about quieter trading periods as well as your current income. Your repayments will still need to be covered when other business costs increase.
Before choosing an agreement, we will discuss:
If you are arranging company car finance for a director or employee, we can also discuss how the proposed term fits your replacement plans. A car you intend to retain for several years may call for a different repayment structure from one you expect to change sooner.
We explain the figures together so you can judge the whole agreement. Our aim is to help you choose a commitment that works beyond the first few monthly payments.
We can compare different upfront contributions and repayment terms where the lender offers that flexibility.
Lease purchase may suit a business that wants eventual ownership and has a realistic plan for the final payment. It can help retain working capital during the term, although the overall borrowing cost still needs careful attention.
It may be less suitable if you want to hand the vehicle back at the end without settling a balloon. PCP usually offers a contractual return option, subject to its conditions. Contract hire is a rental arrangement where you normally return the vehicle rather than acquire ownership.
For customers exploring self-employed car finance, the available products will vary with the lender, business structure and financial circumstances. We check eligibility before presenting an option as suitable for your application.
The finance provider remains the legal owner during the agreement. You will need to meet its requirements for insurance, servicing and maintenance. Speak to your accountant about any tax or accounting implications for your business.
Routine running costs should sit alongside the finance repayments when you assess what you can afford.
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The balloon is a required payment, so it is worth deciding early how you expect to meet it. Paying from available funds allows you to complete the agreement and retain the vehicle once all conditions are satisfied.
Refinancing may be available, but requires a new application and lender approval. Future rates and acceptance cannot be guaranteed. A dealer part-exchange may also help settle the balance, provided the transaction is agreed with the finance provider.
If the vehicle is worth less than the outstanding finance, you remain responsible for the shortfall. Do not assume its sale value will cover the balloon.
Our commercial vehicle financing options can also support businesses buying eligible vans and work vehicles. Tell us what the vehicle needs to do, alongside your budget, so we can discuss finance that fits its intended use.
We are an FCA-authorised credit broker working with a panel of lenders. Your dedicated account manager will discuss available terms, explain the costs and guide you through the paperwork. We can also help source a vehicle and coordinate collection or delivery once funding is approved.
You get one point of contact throughout the process and a clear explanation of what happens next.
Yes, The balloon forms part of the amount you agree to repay.
Both agreements defer part of the vehicle’s cost until the end of the term, but they treat the final payment differently. Businesses choosing business PCP can return the vehicle instead of paying the optional final amount, subject to mileage, condition and other contract terms. With our balloon-based purchase arrangement, the final amount must be settled. We will explain the available options for your circumstances.
Used vehicles may qualify, subject to lender criteria. Age, mileage, value and condition can affect the available terms. We will check the proposed vehicle before progressing an application.
No, Initial payment requirements vary between lenders and applicants. We can explain what is available for your circumstances and how changing your upfront contribution affects the amount financed.
You can request an early settlement figure from the lender. This shows the amount needed to clear the agreement, including applicable charges. Arrange settlement with the lender before selling or part-exchanging a financed vehicle.
Yes, these agreements the mileage limit deters the monthly payment agreed. Higher mileage can reduce the vehicle’s value and increase the risk of a shortfall when settling the finance.
