Balloon Payments are a flexible way to purchase newer vehicles where the initial deposit and repayment period can be calculated to meet your needs and budget. It is a Consumer Hire Purchase Agreement consisting of 24 / 36 / 48 monthly payments followed by a final payment. It is a PCP type product where the Customer is solely responsible for the final payment / balloon.
A decrease in your monthly payments: The main benefits of this products are the lower repayments with the agreement.
The monthly payment should be enough to match depreciation of the Asset during the term
Terms: A deposit is required - typically ranging from 10% to 30%. The Final Payment will be calculated to best ensure that there is sufficient equity in the vehicle when you upgrade in 3 to 4 years times. There are no wear and tear or mileage clauses applicable thus giving you total flexibility. This product is available on brand new cars and on used cars up to 18 months old or four registration periods.
You have 3 options at the end of the Agreement :
Flexibility : Similar to popular PCP products, Balloon Payments present you with more affordable monthly repayments while offering you options at the end of the agreement.
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