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Hire Purchase with Balloon Hire purchase with a balloon offers lower monthly payments than normal hire purchase. Instead, at the end of the agreement, you can make a final lump sum payment (known as a 'balloon' payment) to own your vehicle. 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 vehicle purchase, refinance, part exchange or resale. The deposit you pay is flexible, typically between 10-50% of the vehicle cost, or this may be covered by part exchanging your old vehicle. In some cases, we can even finance the whole amount without the need for any deposit at all. The deferred balloon element is calculated on the estimated future resale value of the vehicle. The difference, plus fixed interest, is repaid in equal instalments over an agreed period usually between 12 to 60 months, plus a final balloon payment. Why consider Hire Purchase with balloon?
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Merry Hill Van Centre Ltd |
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