What is it?

This is a more flexible form of purchase agreement. The initial deposit and repayment periods can be structured to meet your requirements and budget. A final lump sum balloon payment option is available if you would rather make lower repayments throughout the agreement. The balloon payment is calculated on the anticipated value of the car at the end of the agreement.



How does it work?

We will structure the agreement to meet your requirements based on the car, the agreement duration, your deposit and monthly budget

After paying the deposit you make regular monthly payments and any balloon payment, to repay the amount borrowed plus any interest and fees

The interest rate is fixed which means you’ll know exactly how much you will repay throughout the term of the agreement

At the end of the monthly payment period you have two options:
1.)Retain the car: simply pay the balloon payment, and the car is yours
2.)Renew the car: choose another car, using any equity towards your deposit

Features and Benefits

✓ Provides lower fixed monthly payments by offering the option of a balloon on the final repayment

✓ Can allow you to change the car more frequently if you finance over a shorter term

✓ Payments are not subject to VAT since this type of agreement is a purchase plan

✓ There are no mileage restrictions

This type of agreement is covered by the Consumer Credit Act 1974, which means

You can pay off lump sum amounts during the agreement
You can settle the agreement early by repaying the required amount

Other things you should know

The agreement is secured against the car. If you do not keep up your repayments, we may take steps to recover the money owed, which may include repossession of the car

It is your responsibility to repay the balloon payment which means you take responsibility for any difference between the balloon payment and the value of the car

The balloon payment is not optional and also attracts interest throughout the agreement
You become the owner of the car after making all required payments including the balloon payment