Lease Purchase with Balloon

The perfect solution for financing high-value cars

Typically used to finance high-value performance cars and classics, Hire Purchase (HP) with a balloon offers lower monthly payments than normal HP. Instead, at the end of the agreement, you can make a final lump-sum payment (the 'balloon') to own your car.  It's fixed rate finance - but with a lower fixed-monthly outlay since you defer repayment of some of the borrowing. At the end of the agreement, options include car purchase, re-finance, part exchange or re-sale.

You’d pay a number of monthly payments at the start of your agreement (referred to as ‘advance payments’ and the leasing equivalent of a deposit). The deposit you pay is flexible - typically between 10-50% of the vehicle cost. The deferred balloon element is calculated on the estimated future resale value of the car. The difference, plus fixed interest, is repaid in equal installments over an agreed period, plus a final balloon payment.


  • Low deposit - keeps valuable personal cash available
  • Lower fixed monthly payments - perfect for budgeting
  • A better car - lower payments help you choose a higher specification car
  • Flexibility - does not compromise your other lines of credit
  • Assets - you gain vehicle ownership

Lease Purchase with Balloon

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