The Benefits
- Suitable for early settlement
- No extortionate hidden charges
- Variable rates
- End contract anytime
- Ideal for short term purchases
Balanced Payment
This plan is another form of lease purchase that provides you with even more flexibility, because it incorporates a variable rate of interest. With a balanced payment plan you have the opportunity to link the interest you pay to the current interest rates, so you can take advantage if rates fall.
At the start of the agreement your chosen dealer will advise you of the current Finance House Base Rate (FHBR). You can then choose an assumed constant base rate above or below this figure, within a small tolerance, depending on how you think interest rates may fluctuate during the course of your agreement.
This, when coupled with our required margin over the base rate, will determine your equalised rentals of capital and interest. However, as the actual FHBR will continue to fluctuate during the course of your agreement, your anticipated rental period could either lengthen or shorten until the capital and interest is repaid in full.
Our margin will remain constant throughout the life of the agreement, irrespective of movements in FHBR.
Your monthly rental figure will remain unchanged throughout the course of the agreement. If you should wish to terminate the contract this can be arranged at any time after paying the outstanding balance, plus any interest charges required.
We will send you regular statements so you can monitor the account and see how any interest fluctuations are affecting it, leaving you in control to manage your agreement more effectively. Once the agreement is completed you will become the owner of the vehicle.