HOW BALLOON HIRE PURCHASE WORKS?

What is Balloon Hire Purchase?​

What is Balloon Hire Purchase?

Balloon Hire Purchase is almost the same as a regular Hire Purchase agreement but includes a final ‘balloon’ payment that is owed at the end of the contract.

Is this plan right for me?

Choose Balloon Hire Purchase if you want to keep your monthly payments low and intend to own your car at the end of the agreement. This plan is also suited to those who want the flexibility to decide the length of their contract. Plans can last from 12 to 48 months, depending on your requirements.

How Balloon Hire Purchase works

  • Pick the vehicle you want.
  • Agree the term length.
  • Decide the size of the balloon payment.
  • Your regular payments are calculated by deducting the balloon payment and deposit amount from the price of the vehicle, with interest added.
  • Once the balloon payment has been covered, you own the car.

Balloon Hire Purchase benefits

  • Fixed regular payments make budgeting straightforward
  • Lower regular payments, thanks to the deferred balloon payment
  • No mileage restriction
  • You own your chosen car at the end of the plan

About the final balloon payment

It is important to remember that, unlike a standard Personal Contract Purchase agreement, the final balloon payment is not optional. Signing up for this plan therefore means you agree to pay the balloon payment, and will then become the outright owner of the car.

If you would prefer the flexibility to decide the outcome of your car at the end of the contract, consider an Advance Payment Plan (APP).

Make your enquiry

Please enquire with your nearest Sturgess dealership to talk about a Balloon Hire Purchase agreement with one of our financial specialists. A team member can also introduce the new and used models in our stock and book you in for a test drive.

Make an Enquiry

MORE CAR FINANCE OPTIONS