BALLOON HIRE PURCHASE
Balloon Hire is effectively the same as the more conventional hire purchase (HP) with one major difference: there will be “balloon” deferred payment at the end of the agreement, this aids with reducing the fixed monthly payments.
We can tailor a Balloon HP repayment plan to suit your budget, however unlike HP, the final balloon payment is not an option and the future value of your vehicle is not guaranteed.
Benefits of a Balloon Hire Purchase
- Fixed regular payments for easy budgeting
- Regular payments are reduced because as the balloon payment is deferred to the end of the agreement
- You gain ownership of vehicle at the end of the agreement
- Flexibility – you will agree a deposit and an agreement term to suit your needs.
How it works:
- Once you have chosen your desired vehicle you would like you can then decide upon an agreement term usually between 12 and 48 months. You will then agree an amount of the balloon payment that you will defer to the end of the agreement.
- The balloon payment and your deposit are deducted from the price of your vehicle and you will then make regular payments based on the remaining balance plus the interest.
- At the end of your agreement, following the settlement of the balloon payment, you will own your vehicle outright.
If you would like more assistance or would like to discuss any financing options available to you please call any member of our team on 01472 358 625.