Balloon Hire Purchase is essentially the same as standard Hire Purchase, but with a relative proportion of the amount of credit deferred until the end of the agreement. Unlike PCP, there's no Guaranteed Minimum Future Value (GMFV) and you do not have the option to return the vehicle at the end of the agreement.
Balloon Hire Purchase
WHEN THE AGREEMENT STARTS
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Agree an initial deposit and how long you want the agreement to run for
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We will calculate your final payment and confirm your regular monthly payment
WHEN THE AGREEMENT ENDS
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Pay the deferred Final Payment for the title of the vehicle to be transferred into your name
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Part exchange the vehicle subject to settlement of your existing finance agreement (if the part exchange does not cover the Final Payment including interest (where applicable) you would need to pay the shortfall to settle the finance agreement)
ADVANTAGES OF BALLOON HIRE PURCHASE
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Balloon Hire Purchase can be used by business customers who don't want to be bound by mileage restrictions
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Flexible Deposit Options are available
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Monthly payments can be kept lower
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Allows you to drive the newest model
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