Lease Purchase Car Finance

Lease Purchase is a type of Hire Purchase but with a larger balloon payment, offering lower monthly payments than normal Hire Purchase. At the end of the agreement you can pay the final lump sum (balloon) payment to own the car.

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Low Deposit

allowing you to free up personal or business cash

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Lower Set Monthly Payments

perfect for budgeting

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A Superior Car

lower payments can help you choose a higher specification car

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no mileage restrictions

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you can take ownership of the car at the end of the agreement

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Tax Benefits

tax allowances for business users

Lease Purchase Car Finance Explained

Lease Purchase Car Finance

Also known as Hire Purchase with a Balloon, Lease Purchase is an ideal way to fund your vehicle purchase if you want the benefit of lower monthly payments compared to a standard Hire Purchase deal.

To reduce your monthly instalments, a deferred final payment, or balloon, is offset to the end of the agreement. This allows you to pay a lump sum to purchase the car in full, if you choose to do so.

The amount of the deposit is flexible, typically between 10% – 50% of the car’s price. The deferred balloon is calculated on the estimated future value of the car.

At the end of the agreement lease purchase offers a number options:

  • Purchase the car, by paying the balloon payment
  • Part-exchange the car, using any equity towards your next vehicle
  • Sell the car privately, retaining any equity once the balloon has been paid
  • Refinance the final balloon payment

Before choosing Lease Purchase, you need to consider the following:

  • There is no option to return the vehicle to the lender
  • You do not own the car until the final payment has been made
  • With this finance product there is the potential for negative equity
  • You are bound to the terms of the finance agreement, so you should consider your ability to repay, even if your circumstances change. You do not own the vehicle until the sums required by the agreement have been paid, including the option to purchase fee. If you fail to keep up repayments, this will impact your credit rating and may impact your ability to obtain credit in the future. In the event of default, the vehicle may be repossessed without a court order, unless you have paid a third of the total amount payable.

Current representative APR

7.95% 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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