Lease Purchase

Similar to the Personal Contract Purchase (PCP) contract, this also delays a large part of the cost until the end of the finance agreement. The fundamental difference between the PCP and a Lease Purchase is that a Lease Purchase does not allow you to return the car at the end of the agreement. The term of the agreement can be shortened if you're happy to increase the monthly payment. You can only get this agreement through a dealership.

Good for: When you know you want to keep the car at the end of the term and can use the reduced monthly payments to save for your balloon payment. At the end of the term you can either keep the car or use it as a part exchange for a new car.

Considerations: As you have agreed to buy the car at the outset of the agreement, you must ensure you've allowed enough cash for the balloon payment. Unlike PCPs, the finance company will not guarantee the final value of the vehicle (the residual value/balloon)


To find out more fill in the enquiry form or speak to a Thames Motor Group advisor today on 01892 546155 (Tunbridge Wells) or 01753 325053 (Slough)