Available for:
Simply explained
This short video provides a simple explanation of Conditional Sale with a balloon and how it works.
Why it could be right for you
- Pay less each month, compared to our Conditional Sale.
- Fixed interest rate. So, after paying any deposit, you pay the same amount each month for the whole agreement. This covers the amount you borrowed and interest.
- Gives you the option to finance your vehicle for a shorter term if you want.
How it works
- Your monthly payments are lower because you pay the remaining balance at the end. This final ‘balloon’ payment is based on the vehicle’s estimated value at the end of the agreement.
- Your finance quotation will include the balloon payment.
- To meet your needs and budget, choose how long the agreement runs for and the deposit (if any) you put down.
- After paying any deposit, you pay monthly and pay the balloon at the end of the agreement.
- At the end of the agreement, you have one option: Keep the vehicle: simply make the balloon payment and the vehicle is yours.
More you should know
- You can’t return the vehicle at the end of the agreement.
- Once all payments under the agreement have been made, including the balloon payment, you become the owner of the vehicle.
- You are required to pay the balloon payment.
- If you’re a limited company, PLC or limited partnership, we can’t offer you this agreement.
This type of agreement is covered by the Consumer Credit Act 1974, which means:
- You can pay off lump sum amounts during the agreement.
- You can settle the agreement early by repaying the required amount.
- You have the right to terminate the agreement early through Voluntary Termination.