Hire Purchase / Hire Purchase And Balloon

• Is the vehicle being paid for by the business?    
• Do you want to keep the vehicle for more than 3 years?
• Do you want fixed monthly payments?

If the answer is YES to the above then Hire Purchase, Hire Purchase with a Balloon or  Lease Purchase (businesses only) could be for you.

 

You pay monthly payments between 1 and 5 years and once the final payment is made the vehicle is yours.

 

Main Features

Payments tend to be more compared to other schemes due to a low or no deferred amount; the car loan however is reduced faster.

 

Fixed rate car loan ensures payments don’t vary with Bank of England interest rate changes enabling easy budgeting.

Interest rate charges tend to be less as you are taking the responsibility of the eventual value of the vehicle, therefore costing less overall in charges.

 

OSV tip: “Be cautious of low monthly payments and a high final payment, as the likelihood of negative equity at the end of the agreement is high, therefore costing significantly more”