A Hire Purchase Balloon agreement is a type of HP agreement for businesses, which lets you spread the cost of your vehicle over 36 to 48 months to suit your budget. The final balloon payment at the end makes the monthly repayments lower compared to a regular HP agreement.

At the end of your agreement, you have two options: retain or replace the vehicle.

  • Retain: keep the vehicle by paying the balloon payment at the end and any administration and option to purchase fees.
  • Replace: part exchange the vehicle at a local dealership to get a new vehicle.

Good for you, if:

✔  you want to free up cashflow for your business

✔  you want lower monthly repayments in comparison to a HP

✔  you want to spread your repayments over 36 to 48 months to suit your budget

✔  you’re happy to pay a larger balloon payment at the end of your agreement if you decide to keep the vehicle

✔  you can stick to your expected annual mileage

✔  you want dedicated support from our Commercial Team

✔  you’re a limited company and want to claim monthly interest (tax deductible interest), offset wear and tear costs against taxable income and deduct capital allowances from taxable income.


  • Finance is subject to affordability checks and is only available to UK residents aged 18 and over.
  • If you don't keep up with your repayments, the vehicle may be repossessed. 
  • You don’t own the vehicle until you’ve fully repaid the finance including the balloon payment and option to purchase fee at the end.
  • You must be VAT registered.

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