What you need to know

Lease Purchase (LP) helps you buy a vehicle with lower monthly repayments than a traditional Hire Purchase (HP) agreement as a large proportion of the amount you repay is deferred into the final repayment.

You will pay more interest on an LP agreement than a HP agreement for the same loan amount, term and APR as your balance reduces more slowly due to the larger final repayment.
At the end of the agreement you will have two choices:

Own it.   Own the vehicle by paying the final repayment. 

Part exchange.   Subject to paying off your existing agreement in full, you can part exchange the vehicle for a newer model.   New credit agreements are subject to status.   
This product differs to PCP as there is no vehicle return option at the end of the agreement.

Things to consider:

  • You must be at least 18 years old and a permanent UK resident.
  • You must have fully comprehensive insurance.
  • You must have the relevant driving licence for the vehicle.
  • Your vehicle is at risk of repossession if you do not maintain contractual monthly repayments.
  • You do not own the vehicle until the final repayment has been made.
  • You have protection under the Consumer Credit Act Termination Rights and protection under the Consumer Rights Act.
  • Before you decide to apply for finance for a vehicle, we would encourage you to make enquiries of the dealer to ensure you fully understand the history of the vehicle so that you can make a fully informed decision as to whether the vehicle is suitable for you.​​
  • Dealers typically receive commission or other benefits for introducing you to us.  If you request, they must tell you in good time before you enter into the credit agreement, the amount of any commission payable.
  • Details of your credit agreement will be recorded with credit reference agencies.

Lease Purchase

Download our Car product guide for more information.