Lease purchase is a popular way of helping people finance the car they really want.

It can be particularly suitable as a way of buying a prestige car or supercar – and in this article we’ll explain why, as well as exactly how this form of conditional sale agreement works.

When you see someone driving around in an eye-catching, desirable sports car, or a top-of-the-range family vehicle, do you wonder ‘how could they possibly afford to drive one of those?’.

Well, just as the choices of what you can drive have diversified over the years, specialist car finance providers have also emerged, along with a range of associated financial products.

These companies, often set up by classic car and supercar enthusiasts themselves, offer a variety of ways to give potential buyers access to the funds they need to finance a high-performance sports car, or any kind of desirable vehicle.

While buying a car on hire purchase was, for several years, the main – indeed often the only – option available from just about any car dealer, newer finance products cater for the specific needs of different types of customer, and take account of their individual circumstances.


A lease purchase agreement, also known as hire purchase with balloon, is a type of car finance usually used for the purchase of a prestige or more expensive car.

You begin by deciding how much you want or can afford to put down as a deposit, usually a minimum of 20% of the value of the car. Many lease purchase plans are flexible, and can be altered depending on this.

As with applications for any type of finance, you will have to undergo a credit score check, which will determine the amount you are allowed to borrow, as well as the minimum balloon payment that can be deferred until the end of your lease purchase period.

Another factor that will influence the amount you will have to pay monthly is the length of your lease purchase plan, which can typically last between 24 and 60 months.

Then you make a regular monthly repayment, just as you would with a hire purchase agreement, and your contract commits you to buying the car at the end of your agreement period.

Unlike other similar types of finance product, the ‘purchase’ side of the agreement is automatically activated; you can’t simply hand the car back at the end of the term and swap it for another by entering into another contract. You may, however, refinance the balloon or sell the car and retain any capital.

You can use the period of your agreement to decide how you want to fund your eventual purchase and, if necessary, to get the funds in place.