Balanced Payments (BP)

A Balanced Payment Plan offers the benefit of a fixed monthly payment. However, unlike Hire Purchase where the interest is fixed, Balanced Payments track the changes in either London Interbank Offered Rate (LIBOR) or bank base rates, depending on the agreement. As rates fall or rise over the period of the contract, so does the interest charge you pay.

Balanced Payment Plans with a final “balloon” payment are also available.

Our balanced payment car finance packages are available (subject to status and finance company underwriting criteria) exclusively to:

  • Limited Companies/LLP
  • Partnerships
  • Sole Traders/Self Employed
  • Directors
  • High Net Worth Individuals

How It Works

  • Pay a deposit and you then decide on your monthly term between 24 and 60 months.
  • Decide if you want to opt for a final “balloon” payment.
  • At the end of the term any fluctuation on the interest rate is calculated and either charged or credited back to you.

Customer Benefits

  • Minimum interest penalty charges – for early settlement and you take advantage of lump sum payments.
  • Better car - lower payments than standard Hire Purchase allow you to purchase a better car for your budget.
  • Flexibility - not using your personal bank facility with a vehicle purchase gives you greater financial flexibility.
  • Low Deposit – does not tie up valuable cash reserves.
  • Fixed monthly payment – perfect for budgeting.
  • Save - if interest rates fall, so does the total interest paid.
  • No VAT - there are no VAT payments on Balanced Payment Plans.
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