Balanced Payment Agreement
Also called Variable Rate Lease Purchase, with this agreement you have the stability of regular monthly payments, however you also enjoy the benefits and flexibility of variable rates.
Is Balanced Payment Agreement the right choice for you?
This agreement offers a fixed monthly payment but unlike a Hire or Lease Purchase agreement where the interest rate is fixed, Balanced Payments offer a variable rate which tracks the changes in the Finance House Base Rate, LIBOR or Bank of England Base Rate, depending on what is specified in the agreement. As the relevant rate goes up or down over the period of the contract, so does the amount of interest you pay.
✓ You have great potential for savings as the rates change.
✓ Lower deposit options mean you don’t have to tie up your cash.
✓ Payments are VAT free and can offer advantages to business users
Don't just take our word for it:
Really impressed with the guys industry knowledge. I phoned up for a finance deal but they gave me a better one.SAM PESEK
Gerard made me feel welcome and in good hands. He saved me a lot of money on my Classic Car Finance.ANNA HEPPENSTALL
Frequently Asked Questions:
How long does it take to get my car?
Every car, dealer and customer is different as are their needs with regard to speed. We complete some deals in minutes, some are pre-approved but others obviously take a bit longer. For individual customers you could expect to take delivery of your car within a few days – as a very rough guide.
What if I have not found the right car?
How much can I borrow?
We can offer bespoke finance to individuals or businesses lending anything between £10,000 and £10m
What deposit do I need to put down?
Normally 10% will be enough but in some circumstances more may be required.
Applications are looked at by humans - Our hands on approach ensures common sense and flexibility.
We offer a wide range of products with realistic balloons, equity release and refinance packages all to suit your needs and circumstances/
Our finance process
Get in touch
We are happy to tell you more on how BP agreements work.
Put down a deposit
An initial deposit is payed at the start of the agreement.
Choose agreement term
The balance is payed in fixed monthly installments over an agreed term (24-60 months).
End of agreement
Option 1: At the end of the term any variation in interest rates is reconciled and will be settled as either a credit to you, or a charge
Final ‘balloon’ payment
This option has the benefit of reducing your monthly payments by deferring an agreed element of capital until the end which a lender will link to the depreciation of the vehicle.
You own the vehicle
Once the outstanding balance if fully payed off, and any profit gained through changes in rates payed in to your account, you become the owner of the vehicle. You do not have the option to return the vehicle to the lender.
What you need to know about Balance Payment agreement?
Balanced Payments plans tend to be popular with sophisticated borrowers and investors with a good understanding of finance – it allows low deposit and flexibility which can be useful for business users. It is always advisable to consult a qualified accountant who will set out potential benefits and possible savings – payments are VAT free and in some circumstances there are also tax allowances for the business user. The minimum advance for an individual is £25,000 based on a business user declaration but any level is available for limited companies. Be aware you do not have the option to return the vehicle at the end and an increase in interest rates will mean you pay more under the agreement
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Rare Car Finance Ltd. 773 Finchley Road, London, NW11 8DN.
Finance & terms are subject to status. UK residents only. Rare Car Finance Limited is authorised and regulated by the Financial Conduct Authority for the sale of consumer credit.