Balanced Payments Car Finance

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What is Balanced Payments Car Finance?

A Balanced Payment Plan offers the benefits of a fixed monthly payment but unlike a Hire purchase agreement where the interest rate is fixed, Balanced Payments offer a variable rate which tracks the changes in the lender’s reference rate. As the rate goes up or down over the period of the contract, so does the amount of interest you pay.

Following payment of an initial deposit, the balance is then paid over an agreed term, usually 1 – 5 years. At the end of the agreement any variation in interest rates is reconciled and will be settled as either a credit to you, or a charge. Other options available with a Balanced Payment Plan include a final ‘balloon’ payment which has the benefit of reducing your monthly payments by deferring an agreed element of capital until the end.

At Oracle Finance we offer a broad range of finance products including Balanced Payments.

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Benefits of Lease Purchase Car Finance

You could benefit from any of the below…

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reducing interest penalty options for early settlement

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Low Deposit

allowing you to free up cash

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Potential Savings

save money if interest rates fall

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Fixed Monthly Payments

your payments remain fixed

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Tax Benefits

tax allowances for business users

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VAT Free

no VAT on payments


A balanced payment plan typically refers to an unregulated financing arrangement with fixed monthly payments structured to evenly distribute the cost of the vehicle, including principal and interest, over the loan term. This typical involves a variable rate of interest, which is calculated when the agreement is settled.
The benefits of a balanced payment plan may include predictable and consistent monthly payments, making it easier for borrowers to manage their budget. Additionally depending on the changes in interest rates over the course of the term, it may be a lower cost of borrowing.
In a balanced payment plan, monthly payments are designed to be consistent throughout the loan term, making it easier for borrowers to budget and plan their finances. It is the settlement payment or final balloon payment which will vary depending on the changes in the bank of England base rate over the course of the term.
Qualification requirements for a balanced payment plan may include factors such as credit score, income, and the lender's policies. It's advisable to check with the financing provider for specific eligibility criteria.
Many financing plans allow borrowers to make extra payments or pay off the loan early without penalties. It's important to confirm these details with the lender.
Refinancing options may be available depending on the lender's policies. It's recommended to check with the financing provider to understand if refinancing is an option.
Missing a payment in a balanced payment plan can result in late fees and may have implications for your credit score. It's advisable to communicate with the lender if you anticipate difficulty making a payment.
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Current representative APR

9.9% APR

Oracle Finance is a Credit Broker and not a Lender.

This means that we deal with a wide range of financial institutions to give our customers a greater choice of competitively priced options. For your protection, Oracle Finance is authorised and regulated by the Financial Conduct Authority for the sale of consumer credit. Oracle Finance is a trading name of Oracle Asset Finance Limited.


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Balanced Payments Car Finance