What is finance lease?
Finance Lease is a rental agreement that, whilst never leading to full ownership, could give you a share of any future resale value. There are two types of Finance Lease agreements – ‘balloon’ repayment and full payout.
"Balloon" repayment finance lease
How much do I pay and when?
‘Balloon’ repayment is when you defer a proportion of your vehicle’s value until the end of the agreement, leaving you with lower monthly rental repayments.
Once you’ve selected your initial rental, there are three decisions to make that will affect your monthly rental repayments:
- Your payment period: Choose between 18 and 48 months.
- Final balloon repayment: Agree an amount to defer until the end of the agreement.
- Mileage per year: Choose how many miles you expect to drive each year (if you exceed this it will affect the resale value).
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