A Lease Purchase Agreement with Crowns Motors is very similar to Hire Purchase. The key difference is that there is a ‘balloon’ final payment required at the end of the agreement, which allows you to select a much lower monthly repayment and perhaps purchase a car of higher value than you might normally have considered. Otherwise it is much like a personal loan, in that you make monthly payments with a set level of interest.
With Lease Purchase you can adjust the deposit and agreement length to suit your circumstances and you may even choose to pay no deposit at all. Terms last up to 48 months, with your instalment due on the same day each month and your interest rate fixed; there are no unexpected demands or nasty surprises to face.
It is important to budget for the final balloon payment that will be payable at the end of your agreement. You will know exactly what this is going to be from the beginning and it is calculated on the estimated future resale value of your car.
The used vehicle that you choose at Crown Motors will become the security for your financial agreement and of course you can begin using it straight away while you are making payments. One advantage of this is that it keeps other types of credit open to you, should you need them at any time. It is important to remember that, if you fall behind on your repayments the car will be repossessed and you will still be liable for the outstanding balance due. You are not allowed to sell or dispose of the vehicle while your agreement term is still running.
To explore your Lease Purchase options with Crowns Used Car Finance, simply contact our team today.