Lease Purchase offers all the benefits of Hire Purchase, but with the added flexibility of an optional deferred large sum (balloon) payment. This deferred lump sum can reduce your monthly payment, or reduce your contract length.
You pay an initial deposit followed by a fixed number of monthly payments over an agreed contract period.
Monthly payments can be reduced by making a 'balloon' payment at the end of the agreement.
The amount of the 'balloon' payment has to be settled at the beginning of the contract.