For drivers keen on owning their car or van, while wishing to avoid the high monthly payments of a Hire Purchase, a Lease Purchase is a fantastic option as it combines the low monthly repayments of a contract hire, with all the benefits of owning a car. With Hippo Leasing, we can offer an excellent lease purchase contract deals.
What is a vehicle Lease Purchase (LP) agreement?
A Lease Purchase or LP is an agreement for a period of time, typically 24-60 months, whereby:
You choose a car
Pay the deposit if you have one
Agree on a monthly payment
Options when the Lease Purchase ends
Own the vehicle - You are the registered keeper of the vehicle once the balloon payment is paid at the end of the agreement
Part exchange - pay off the balloon payment then lease a newer car
Owning the vehicle outright is an attractive option if you intend on keeping your lease purchase car or van longer than the length of the contract. Otherwise you are free to change cars using a part exchange and paying off the balloon payment.
What is the difference between a Lease Purchase and Personal Contract Purchase agreement?
With both a Personal Contract Purchase(PCP) and Lease Purchase (LP),monthly payments do not contribute to the cost of the vehicle but cover the depreciation of the vehicle over the lease length. This simply means you will be repaying the difference between the value of the car at the start and what it will be worth at the end of the agreement. The big plus side of this is you have lower monthly payments, making LP incredibly affordable for cars otherwise outside your budget.
Where the two agreements differ is in the options available at the end of the agreement. Unlike an LP where you own the vehicle once the balloon payment has been made, you would have the option to return the car with no extra charges if opting for a PCP agreement. The key difference between LP and PCP is that the balloon payment is compulsory with the former.
Lease Purchase advantages
Monthly payments are often lower than if the car is financed with a Hire Purchase (HP) plan
You can settle your agreement early by paying off outstanding payments
Allows high-quality luxury leasing - A higher quality of car becomes a financial possibility. The better car is at holding its value, the lower your monthly payments will be. This will afford you cars you may not have previously been able to buy.
Vehicles available to Lease Purchase at Hippo Leasing
At Hippo Leasing, all our vehicles are available with an LP plan. With 600 vehicles in stock and access to source most cars from 2011 onwards, Hippo Leasing can get you the car you want. What’s more, with UK-wide delivery, no matter where you are searching for your lease purchase from, we can get you your desired car quickly and hassle-free.
Browse our range of cars available below and enquire about your vehicle of choice today!
Lease Purchase with Hippo Leasing
With Hippo Leasing you are getting Lease Purchase deals you can trust from a multi-award-winning vehicle solutions provider. Hippo is authorised and regulated by the Financial Conduct Authority (FCA),and is a member of the BVRLA and the Leasing Broker Federation.
For more information on the Lease Purchase car deals on offer at Hippo Leasing, give us a call at 01254 95666 or drop us an email at email@example.com today.
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