About your agreement
Lease Purchase is an enhanced form of Hire Purchase, with some added benefits.
How Lease Purchase works
The advantages of Lease Purchase agreements include a low deposit and reduced monthly payments. This is possible because a balloon payment, which is a percentage of the anticipated value of the car, is deferred until the end of the agreement.
Fixed interest rates
The interest rate is fixed at the start of the agreement and does not vary, irrespective of how interest rates may change over the period.
At the end of the agreement
At the end of your contract, when you have made your final payment (the proportion of your loan) and option-to-purchase fee, the car belongs to you to keep or part exchange.
Alternatively, you can apply to re-finance the final payment (spreading the final lump sum cost over an agreed term with monthly payments) subject to your status and satisfactory payment history.
More information about Lease Purchase agreements: