Lease Purchase

Lease Purchase (LP) is a flexible vehicle finance option that combines features of both hire purchase and leasing. It's a great choice if you know you want to own the vehicle at the end of the agreement but prefer lower monthly payments during the term.

Here's how it works:

You pay an initial deposit, followed by fixed monthly instalments over a set period.

A final lump sum - known as a balloon payment - is deferred until the end of the agreement.

Once the balloon payment is made, ownership of the vehicle transfers to you.

The balloon payment is based on the projected value of the vehicle at the end of the term, taking into account factors such as mileage and age. Because this amount is deferred, your monthly payments are typically lower than standard hire purchase.

Unlike PCP (Personal Contract Purchase), the final balloon payment in LP is not optional - it must be paid to complete the agreement.

Lease Purchase is often used for higher-value vehicles or those used in a business setting, and it can be tailored to suit your budget and cash flow. At Q Finance, our team will help you understand whether LP is the right fit for your needs and find a deal that works for you.

What is LP Finance (Lease Purchase)?

LP (Lease Purchase) is a type of car finance where you pay monthly towards the vehicle, and then make a final payment at the end if you want to own it.

How Does It Work?

Pick your vehicle

New or used - your choice.

Pay a deposit (if you want)

Often optional. Lower deposit = higher monthly.

Make monthly payments

You're paying off part of the vehicle's value.

Make a final payment

Known as a balloon payment - this covers the rest of the value.