Lease Purchase: Common Profiles

There are no mileage restrictions.

However, lenders may impose certain restrictions on the use and location of the vehicle. For example, the vehicle cannot be used for business purposes if bought by a private consumer or taken outside of the European Union.

Deposit

A deposit and/or advance payments are normally optional (or the minimum/maximum amount is set by the lender) and can be paid in cash or by using any equity from a vehicle that has been part-exchanged.

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Fees

There may be an arrangement fee charged by the lender that can be paid at the start of the agreement or included as part of regular repayments for the term of the agreement. The fee amount is set by the individual lender (plus an Option to Purchase fee at the end of the agreement if it is based on a Hire Purchase contract).

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Regular monthly payments including interest

The customer pays off the amount borrowed plus interest in monthly instalments over an agreed period of time (usually up to five years).

At the end of this period (and once the Option to Purchase fee has been paid if the Lease Purchase plan is based on a Hire Purchase contract), title to the vehicle passes to the customer.

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Balloon payment

A balloon payment at the end of a Lease Purchase may also be included. If a Lease Purchase contract is based on a Conditional Sale agreement then there is no Option to Purchase Fee to be paid.

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