BALLOON HIRE PURCHASE Balloon Hire Purchase is similar to a standard Hire Purchase (HP) finance plan. However, you can keep your monthly repayments lower by deferring payment of a proportion of the amount of credit, the “balloon payment”, to the end of the agreement. With Balloon Hire Purchase, you won’t have the option to return the vehicle and must plan for the balloon payment.
Balloon Hire Purchase is similar to a standard Hire Purchase (HP) finance plan. However, you can keep your monthly repayments lower by deferring payment of a proportion of the amount of credit, the “balloon payment”, to the end of the agreement. With Balloon Hire Purchase, you won’t have the option to return the vehicle and must plan for the balloon payment.
WHY IS THIS PLAN FOR ME?
I want to own my Land Rover at the end of my finance agreement.
I want to drive the newest model.
I want to know exactly how much I have to pay each month.
I want lower monthly payments.
I have a deposit to put down.
I do not want mileage restrictions on my agreement.
HOW IT WORKS
1. Choose a new or used Land Rover (vehicles must be no more than 84 months old at the end of the agreement).
2. You agree an initial deposit with your Land Rover retailer. A part-exchange can also be used to support the deposit.
3. You also choose your agreement term (between 1-4 years).
4. Equal monthly payments with a fixed interest rate are then calculated. A final agreed deferred payment is due at the end of the agreement.
5. The dealer will then submit the application to Land Rover Financial Services. Subject to your application being approved, you can drive away in your Land Rover.
6. Land Rover Financial Services buys the vehicle on your behalf (less any deposit you’ve paid to the retailer).
WHAT HAPPENS AT THE END OF MY AGREEMENT?
1) Pay the deferred final payment, plus an Option to Purchase Fee, for the title of the vehicle to be transferred to your name.
2) Part-exchange the vehicle subject to settlement of your existing credit agreement. You are then free to start a new agreement, subject to status.
The credit agreement is secured against the vehicle for the duration of the agreement, which means it’s owned by Land Rover Financial Services until the final payment has been made.
WHAT ELSE DO I NEED TO KNOW?
- Credit is subject to status and is only available to UK residents aged 18 and over.
- This plan is also available to business customers.
- A proportion of the credit is deferred until the end of the contract so you should prepare for this.
- Your vehicle is at risk of repossession if you do not maintain contractual repayments.
- You have no protection against depreciation as a result of an unexpected fall in the value of the vehicle.
- It is possible to return the vehicle early if you’ve already paid for at least half of its cost or if you make up the difference between what you’ve already paid and half of its cost. If you’ve already paid more than half of its cost, you won’t receive a refund of the difference.
- You must have fully comprehensive insurance.
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