HP + Balloon

What Is Hire Purchase Finance With A Balloon Payment?

For Hire Purchase with Balloon, the value of the vehicle is determined at the beginning of your contract. You decide on how much of that value you’d like to offset to the end of the agreement, known as the “Balloon”. After making the initial deposit (typically flexible between 10-30% of the car’s value), the remainder is financed to you through one of our approved lenders with additional interest.

Magnitude Finance’s long-standing relationships with these lenders ensures that we always find you the best deal. A typical Hire Purchase with Balloon agreement is spread over a period of 36 to 48 months.

Why Would You Get A Hire Purchase With An Optional Balloon?

Not all Hire Purchase agreements require a Balloon payment, our standard HP Finance agreement simply spreads the full cost of the vehicle over your pre-agreed contract duration.

With a Balloon payment however, since you are offsetting a portion of the total cost to the end of the agreement, your monthly payments are often lower, typically at a more attractive price. Monthly costs stack up, so knowing that your Hire Purchase with Balloon matches a relatively low deposit with more favourable monthly payments gives you the peace of mind to truly enjoy your new vehicle.

Hire Purchase with Balloon payment deals are the perfect finance agreement for those wanting to get their hands on their dream vehicle whilst being able to offset some of the cost until the end of the agreement, freeing up valuable funds.

Lower monthly payments are usually the most attractive aspect of a Hire Purchase with Balloon agreement — you can use our state-of-the-art finance calculator, or speak with our experienced team to discuss your exact requirements.