Personal Lease Purchase



If you take out a personal lease purchase agreement on a new car, you agree from the outset that at the end of the contract, you will purchase the vehicle. It enables you to eventually buy a new car, without having to find the entire amount up front.

Where lease purchase differs is that it is a pure finance agreement. You are responisble for making all the payments, you cannot just hand the vehicle back at the end like with PCP.

Will it work for you?

As with many other leasing agreements, you will pay an initial payment deposit followed by a term of monthly payments, and then pay a ‘balloon payment’ at the end of the agreement to own the vehicle. The monthly payments – over a period of 24, 36 months etc are worked out using the retail value of the brand new vehicle, the length of contract and the estimated residual value of the vehicle at the end of the term.

Lease purchase is often a popular option with people who know what vehicle they want to eventually purchase, but can’t access sufficient funds to pay for the new car outright upfront.

Key features of personal lease purchase:

  • Pure finance package – no maintenance packages or other services are included.
  • The vehicle is paid for via an initial payment deposit, low monthly payments and a final balloon payment at the end of the agreement.
  • The vehicle must be purchased at the end of the agreement – you agree to take ownership at the beginning of the contract.

Key benefits of personal lease purchase:

  • Monthly payments are not subject to VAT
  • You will own the vehicle once the final balloon payment has been made
  • Low deposit and monthly payments, making budgeting easier

At the end of the contract

When your lease purchase agreement reaches the end of its contract, you must take ownership of the vehicle. There is no option to return it. You’ll be required to pay the final balloon payment, and then the car will be yours. 

  • The small print *

    All offers are subject to change at any time, you must be 18 or over and finance is subject to status, vehicle availability and terms and conditions apply. We can introduce you to a limited number of finance companies, a commission may be received. Failure to maintain payments may result in termination of your agreement and the vehicle being returned, this could affect your credit rating and make it more difficult to obtain credit in the future. 

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