Rates from 8.9% APR  - 8.9% APR Representative
HP + Balloon

HP + Balloon

B Certified Car Finance Awards

At Magnitude Finance, we know that searching for your ideal car should be as stress-free as possible. With over 30 years of experience in brokering affordable finance for clients from all backgrounds, we pride ourselves on being your go-to car finance broker.

Whether you’re looking to finance a new car or have found the second-hand motor of your dreams, Magnitude Finance can help. Hire Purchase with Balloon is but one of the different car finance options that we offer; we also take care of other finance options such as Personal Contract Purchase (PCP) and a standard Hire Purchase agreement.

Looking for a quote? Our concierge team specialise in bespoke products like this, for more information click here.

Hire Purchase + 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.

What About My Monthly Payments?

Like a standard Hire Purchase agreement, you make fixed monthly repayments which are uniform across the entire contract length. During this time, ownership of the vehicle stays with the lender. At the end of the agreement, you repay your Balloon payment in one final lump sum payment, and the vehicle is yours!

Hire Purchase with Balloon allows for a level of end-of-term flexibility that simply isn’t possible with other finance options like Balanced Payments.

Unlike a Personal Contract Purchase deal, at the end of the agreement, you do not have the option to simply walk away by returning the car; Hire Purchase with Balloon agreements require you to either:

  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’re now officially the vehicle owner!

Failure to pay for the vehicle in full can negatively affect your credit rating and may prevent you from acquiring credit in the future.

8.9% APR Representative. We are a credit broker, not a lender.

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Hire Purchase + Balloon
Hire Purchase + Balloon

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.

What Are The Benefits Of Choosing HP + Balloon To Finance A Vehicle With Magnitude Finance?

  • Flexible Deposit Options
  • Fixed Monthly Payments — always know how much your monthly instalments will cost.
  • Quality advice from seasoned financial experts
  • Early Settlement Support — speak to our team to discuss how you can make your final balloon payment ahead of time
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Hire Purchase + Balloon
Ferrari Portofino Finance

How Is A HP + Balloon Deal Handled With Magnitude Finance?

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.

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.

When it comes to the vehicle itself, we consider your annual mileage, monthly budget and the car price; we’ll only make recommendations based on your individual circumstances and make efforts to make sure that you’ll never be left with unexpected costs.

Ready to Start Your Journey With Us?

Call 01943 660978 or fill out the form below, and our concierge team will get in touch for a straightforward, no-obligation chat.

8.9% APR Representative. We are a credit broker, not a lender.

Contact the concierge team