What is Balloon Hire Purchase?
Balloon Hire Purchase is the same as conventional Hire Purchase, however, there is a 'balloon' deferred payment at the end of the agreement which reduces the fixed monthly payments.
After selecting a suitable vehicle, the length of the agreement term - between 12 and 48 months - is decided. Once the term has been agreed, you will need to confirm the amount of the balloon payment, which will be deferred until the end of the agreement.
You'll then pay a deposit usually by cash, by part exchanging your old vehicle or a combination of both. The balloon payment and the deposit are then deducted from the price of the vehicle to determine the amount you'll need to pay each month to settle the remaining balance, plus the agreement interest.
At the end of the agreement, customers will own the vehicle outright following the settlement of the balloon payment and all the monthly instalments.
For a quotation, help, or advice contact your local dealership and ask to speak to one of our Business Managers.
Is Balloon Hire Purchase suitable for me?
Balloon Hire Purchase is suitable for customers who would like to own the vehicle once all necessary payments have been made.