Hire Purchase with Balloon
WE ARE A CREDIT BROKER, NOT A LENDER
Here at Magnitude Finance, we put you in the driver’s seat of your dream luxury car.
It’s something we’re rather good at – seen from over three decades spent in the business of creating prestige car finance options, made bespoke to the needs and requirements of top clients and car enthusiasts up and down the country.
Our concierge team is able to combine years of industry knowledge – and passion for cars – with Magnitude’s exclusive access to over 20 reputable lenders. This gives us the unmatched ability to secure some of the most competitive and select Hire Purchase (HP) finance deals available on the market, with further room to tailor your finance type to suit you perfectly.
If you’re looking for outstanding service that can assist you across multiple forms of finance, wherever you are on your journey, we’re here to help you secure the prestige car you have your eye on.
We’re independent, through and through. That means we work closely with our finance partners to ensure that you get the best option for your requirements – so you can focus on finding the perfect car while we source the perfect lender.
As brokers, we will offer you the best of the best when it comes to car finance deals. We have access to an esteemed panel of lenders, some of which do not deal directly with the public – offering exclusive Hire Purchase agreements that cannot be found anywhere else.
Through these long-standing partnerships, cultivated over decades of successful brokering between the vehicle owner, ourselves, and our lenders, we offer a cohesive and dedicated approach to luxury finance for drivers. Whether you’re enquiring about an initial no-obligation quote or simply want to understand your options regarding an existing finance arrangement, our concierge team is on hand whenever you need us.
After all, for even the most experienced collector or car enthusiast, we know that trying to source any form of finance for your luxury vehicle takes up precious time and energy. Our clients shouldn’t have to chase flexible finance deals, which is why our team can handle as much or as little as you like. From chasing quotes to expertly handling the paperwork, we have you covered every step of the way.
Whether you’re looking to secure a Hire Purchase deal with a Balloon for the newest exotic model, classic prestige marque, or the latest hypercar, Magnitude Finance can help you make the best choice.
Wherever the road takes you, we can give you the keys to the perfect finance agreement for you and your luxury vehicle.
To discover our full range of industry-leading finance products or to get expert insights from our team of passionate car fans, get in touch with Magnitude Finance today.
What is Hire Purchase finance with a Balloon payment?
Similar to a traditional Hire Purchase finance contract, HP finance deals with a Balloon payment differ when it comes to the end of your agreement. Just like a Personal Contract Purchase (PCP) contract, a certain amount is retained until the end of your finance term – known as the ‘balloon payment’ – which is often used to reduce the amount you pay in monthly instalments.
For luxury vehicles with strong residual values, such as highly collectible models or limited productions from names such as McLaren, this can offer a level of flexibility that might not be found with other financial products. The balloon amount is agreed upon in advance and fixed, which will then be paid after a determined period of time when the contract ends, similar to a lump sum payment.
However, it is important to note that, unlike a PCP contract, there is no Guaranteed Minimum Future Value when you choose the HP + Balloon option. This means the final payment must be made in full at the end of the agreement – and all monthly instalments will have been paid on time – if you want to keep the keys and drive away with your prestige vehicle.
Once all of these payments have been finalised, you officially become the owner of the car. As such, you cannot make any changes or modify your vehicle until the balloon has been paid.
But if you choose to part ways with it, or simply have your eye on another model instead, you can choose from two end-of-term options. Your vehicle can be part-exchanged, with any outstanding equity going towards the value of your next marque or model once the finance has been agreed upon.
Of course, we know that our clients aren’t born financial gurus – or else we’d be out of business very quickly. However, with a knowledgeable finance team with decades of experience under their belts, it makes sense to keep you in the loop when it comes to making smart decisions with your money.
That’s why we have collated tips, key insights, and straightforward guides in our Car Finance Academy, with information on potential hidden fees, in-depth glossaries, and more, as written by our in-house team of experts.
That way, you get to finance your dream luxury vehicle at an attractive price while enjoying the unparalleled customer experience from Magnitude Finance – with no surprises.
Why would you get a Hire Purchase with an optional Balloon?
When you choose an HP finance contract with a Balloon from one of our outstanding finance packages, you get a simple – but flexible – way of getting into the driver’s seat.
With a number of flexible deposit options to choose from at the beginning of the deal, a straightforward plan of monthly costs, and a final balloon payment to assist in budgeting, a Hire Purchase with a Balloon plan is great for drivers with their eyes on limited edition or classic cars.
The main benefit of this kind of plan is that it offers some of the best aspects from other finance products, all tied up in a handy hybrid finance arrangement. Thanks to the final balloon payment – which works like a deferred lump at the end of your contract – you should expect to see lower monthly payments in comparison to an equivalent Hire Purchase deal.
You can also find deferred payments in some other finance options, such as Personal Contract Purchase.
This is where the total value of the vehicle is pre-agreed at the start of your contract and then deferred until the end when the balance must be paid off. A balloon is also agreed upon in advance and fixed – but is generally seen as a more flexible choice for those dealing with vehicles with strong residual values.
This flexibility extends to your deposit options, too.
As such, a Hire Purchase agreement with a Balloon is one of the most popular options when it comes to securing finance against a classic or limited edition marque vehicle.
At Magnitude Finance, we take the time to understand your goals and plans for the future. We don’t just source exclusive deals from our top-quality panel of lenders but ensure that each solution is tailored to your needs exactly.
Clients who are looking to take out this type of finance with us enjoy a choice of agreement length based on their own financial circumstances, as well as peace of mind from fixed monthly repayments throughout the Hire Purchase finance period, right up until you have to pay off your balloon.
This finance features further flexibility, as you are free to settle the agreement part way through the term should you wish.
At Magnitude Finance, our team is available at any time to help you explore your options and get the most out of your bespoke deal. To find out how we can assist in settling a finance plan early, all you have to do is get in touch – or use our handy Settlement Finance Calculator to get a quick and easy estimate.
How is a Hire Purchase finance deal with a Balloon handled with Magnitude Finance?
At Magnitude Finance, we are able to handle as much – or as little – as you’d like as we search for the best finance quote for you.
Our truly independent concierge team offers a completely cohesive approach that works in your interests only, which means we will only ever give you straightforward and honest advice regarding your options.
Whether you have chosen from our range of industry-leading financial products or have spoken with a member of our team for a personalised quote, we can quickly get to work creating the best solution for you.
Once you’ve decided to continue with a Hire Purchase plan, we’ll get to work sourcing the best deals from our panel of esteemed lenders, creating a bespoke car finance package that suits your needs. After all, that’s what you can expect from our first-class customer service.
For a Hire Purchase with a Balloon plan, you will first need to make a flexible initial deposit. This is normally valued between 10-30% and will agree on the fixed amount you are expected to pay monthly, usually for a period of 36 to 48 months. Throughout the time, it’s important to remember that the car is not yours until your final balloon payment is made, so you will be unable to make any changes or modifications to the vehicle until it is officially yours.
Once our clients have reached the end of their agreement and have successfully paid any outstanding balances, they can choose from three options:
1. Sell the car and repay the finance
2. Refinance the balloon payments and extend the agreement
3. Settle the finance and keep the car
You DO NOT have the ability to simply hand the car back as this is not a guaranteed end value.
Until the entire balance of your deal is paid and finalised in full, your prestige vehicle still belongs to the, funder so missing charges can still impact your credit.
Until the last installment of your agreement is paid in full, the vehicle is still under the ownership of the finance company, and missing these charges may have further repercussions on your credit rating. It can also impact your ability to gain credit in the future.
Until the entire balance of your deal is paid and finalised in full, your prestige vehicle still belongs to the dealer, so missing charges can still impact your credit.
Until the last instalment of your agreement is paid in full, the vehicle is still under the ownership of the dealer, and missing these charges may have further repercussions on your credit rating. It can also impact your ability to gain credit in the future.
Because of this, we do take multiple factors into account before submitting to our panel of lenders, such as your individual circumstances and credit record. This is something only you can see when you perform a search, but our credit analyst team will require a full credit reference search once we attempt a formal proposal with the appropriate finance house.
At Magnitude Finance, we work to secure your deal as quickly and efficiently as we can – which usually takes us a few days to ensure all the paperwork is signed and processed correctly before monies are released. To supplement this, we utilise and develop some of the best technology our industry can offer, helping our clients get the most out of their finance options; including our state-of-the-art Hire Purchase with Balloon Finance Calculator.
With a few simple clicks, our handy tool can produce no-obligation results in just 60 seconds – and you can even send them to your email inbox to be viewed anywhere, at any time.
However, if you want a tailored quotation, our friendly and experienced finance team is on hand to help.