Lease Purchase Car Finance

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What is 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 Oracle Finance we offer a broad range of finance products including Lease Purchase.


Benefits of Lease Purchase Car Finance

You could benefit from any of the below…

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Low Deposit

allowing you to free up personal or business funds

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Set Monthly Payments

perfect for budgeting

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A Superior Vehicle

lower payments can help you choose a higher specification vehicle

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no mileage restrictions

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you own the vehicle at the end of the agreement

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Tax Benefits

tax allowances for business users


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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.


A Lease Purchase, also known as a Hire Purchase with a balloon, finances the whole value of the car, but defers a final payment amount until the end of the agreement.
A Lease Purchase allows for lower monthly payments when compared to a Hire Purchase, as well as the ability to have a lower deposit of typically 10-50% of the car’s price. The key difference is Lease purchase is a path to ownership.
Yes, a Lease Purchase agreement can be settled early by paying the remaining balance, including any applicable early settlement fees.
Yes, LP agreements typically have mileage restrictions, as these are used to calculate the final payment or balloon. Exceeding the agreed-upon mileage may result in negative equity at the end of the agreement or if the car is settled early.
Modifications to a car under Lease Purchase finance may be allowed, but it's advisable to check with the finance provider to ensure compliance with terms.
Yes, you can typically trade in your car during a Lease Purchase agreement. The trade-in value can be used to cover the balloon payment or reduce it.
Lease Purchase requires a deposit and fixed monthly payments, like leasing. At the end of the term, you have the option to buy the car by paying a predetermined balloon payment.
At the end of a Lease Purchase agreement, the balloon payment must be paid. The car can be sold to cover this payment if needed, with any positive equity being kept. Alternatively, the balloon can be re-financed, starting a new agreement on the vehicle.
The balloon payment in a Lease Purchase is a large final payment due at the end of the agreement, allowing you to have lower monthly payments and an option to own the vehicle outright.
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Lease Purchase Car Finance