The car and motorcycle finance professionals.

The car and motorcycle finance professionals

Get a quick quote or apply online.

Get a quick quote or apply online

Smart funding solutions...aggressively competitive pricing.

Smart funding solutions...aggressively competitive pricing

We will fund any new or used car/ bike from your chosen supplier.

We will fund any new or used car/ bike from your chosen supplier

Fully licensed for the sale of CCA regulated finance products.

Fully licensed for the sale of CCA regulated finance products

Delivering innovative funding solutions across the UK since 2004.

Delivering innovative funding solutions across the UK since 2004

Motorcycle finance deals to get you on the road.

Motorcycle finance deals to get you on the road

Lease Purchase

Lease Purchase Explained


What is Lease Purchase?
Lease Purchase is also known as Hire Purchase with a final balloon payment. A Lease Purchase agreement extends the flexibility of Hire Purchase by enabling lower monthly payments. Rather than funding the full vehicle price (less deposit) Lease purchase is designed to fund the vehicles depreciation. This offers considerable advantages to business and individuals who want the very best vehicle options for their budget.

How Lease Purchase works
Lease Purchase is structured in the same way as a Personal Contract Purchase(PCP) facility, in that a capital lump sum amount, known as the Residual Value (RV), is deferred to the end of the agreement.This deferred amount must be settled to gain outright ownership. As with PCP, the RV is based on the type of vehicle and the suggested annual mileage covered by the vehicle. By deferring a lump sum to the end of the agreement, the RV reduces the regular monthly payments and makes more expensive vehicles far more affordable. It is a very flexible product, with repayment terms over periods or 24, 36, and 48 months and a minimum deposit that is normally around 5%. The interest rate applicable is generally less that PCP.

There are no mileage requirements, but the responsibility to settle the final balloon payment falls to the hirer as there is no guarantee offered at the end of the agreement in terms of handing the vehicle back to the finance company.

What happens at the end of a Lease Purchase contract

  1. Pay the balloon (RV) amount to the lender and take full title to the vehicle.
  2. Part exchange the vehicle, and settle the balloon payment with any equity in the vehicle (equity will depend on part exchange values at the time and the amount of the balloon payment).
  3. Contact Radius Finance, who will make arrangements to refinance the balloon payment (subject to underwriting) over a term between 12 and 48 months.

Summary
A deferred balloon payment will reduce the cost of monthly instalments. Lower interest rates apply to this product than PCP and there are no fixed mileage requirements. Excellent for those wishing to maximise buying power for their budget. Lease purchase agreements can be settled at any time.

Click here for a bespoke quote on any new or used car, motorcycle or Light Commercial Vehicle. 

Apply online here or contact us for further information.



Personal Contract Purchase
Hire Purchase


3 SIMPLE STEPS TO ARRANGE THE CAR FUNDING YOU NEED AT THE LOWEST POSSIBLE RATE...
  • 1. Request a finance quotation based on the most cost effective way of financing your new Vehicle.
  • 2. We will arrange your loan facility (subject to status). This normally takes just an hour or two.
  • 3. We will arrange an invoice from the supplier and make payment (same day cleared funds) in time for delivery.