Lease Purchase with Balloon Explained
What is Lease Purchase with Balloon?
Lease Purchase is a straightforward form of purchase agreement specially designed for business users. The initial advanced payment and repayment periods can be structured to help meet your budget and the length of time you anticipate owning the vehicle. You will automatically become the legal owner of the vehicle once all payments have been made.
A final lump sum balloon payment option is available if you would rather make lower repayments throughout the agreement. The balloon payment can be set to an amount that suits you, as long as it does not exceed the anticipated value of the vehicle at the end of the agreement.
How Lease Purchase with Balloon Works

1: Pay an advanced payment
Select the initial advanced payment you wish to pay, if any at all.
If you choose to pay a deposit, you can either pay in cash or trade in your existing vehicle (part exchange).

2: Set your terms
Choose how long you would like the agreement to run, the value of the balloon amount and make regular payments to repay the balance and interest. The interest rate is fixed which means you pay the same amount each month.

3: You own the vehicle
At the end of the agreement, you have one option:
Keep the vehicle: simply make the balloon payment and the vehicle is yours
Other things you should know:
- This is an unregulated agreement. We secure the agreement against the vehicle. If you don't keep up your repayments, we may take steps to recover the money owed. This may include repossessing the vehicle.
- Vehicle finance for business can be complex. The right finance plan will depend on several factors including business status, cashflow, other borrowings, and tax planning.
- We strongly suggest that you seek financial advice before making your decision.
- You can only get lease purchase if you’re a limited company, a PLC, or a limited partnership on an unregulated basis.
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- Once all payments under the agreement have been made, including the balloon payment, you become the owner of the vehicle.
- The balloon payment is not optional and also attracts interest throughout the agreement
Download our Lease Purchase Product Guide
Our product guides are downloadable as a PDF via the link below.
Frequently Asked Questions
A balloon payment is a lump sum that you can pay at the end of your agreement to own the vehicle, allowing you to make lower repayments throughout the term. The balloon payment is calculated on the anticipated value of the vehicle at the end of the agreement.
Under certain circumstances we may allow you to reschedule your balloon payment. Please speak with a member of our Customer Services team if you would like to discuss this.
No, Kia Finance will hold title of the vehicle until you have made all monthly payments and the balloon payment if you opted for it.
When applying for finance you will be required to supply certain personal information, as well as to confirm your identity.
You will need to provide a full UK driving licence. We may also ask you for further proof of your address dated within three months of the submission of your application. An acceptable proof of address includes a bank or credit card statement, utility or council tax bills, or mortgage statements.
Account Management Fees | Empty |
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Copy statement of account | £12.00 |
Change of payment due date* | £25.00 |
Change of vehicle registration plate | £30.00 |
Collection of vehicle upon voluntary termination of agreement | £70.00 |
Transfer of agreement fee** | £150.00 |
Arrears Management Fees | Empty |
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Monthly arrears fee*** | £35.00 |
Internal collection agent visit | £50.00 |
External collection agent visit | £250.00 |
* One change of payment due date is allowable free of charge any time during the agreement.
** Only applicable for agreements not regulated by the Consumer Credit Act, i.e. transfers from one limited company to another limited company.
*** When your payment is made late and for every subsequent month that your agreement remains in arrears, limited to 3 in any single defaulting period. The charges detailed within this document are correct as at 30th July 2014. Kia Finance reserves the right to amend these fees at any time.
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