Balanced Payment Plan - The Benefits
Balance Payments can be offered where the amount of finance required is over £20,000 and is one of the most flexible types of vehicle finance products available at the moment, because it offers customers much lower monthly payments, compared to other traditional car finance products.
This is achieved because the interest rate charged is tracked to LIBOR [London Interbank Offered Rate] on a month by month basis and is therefore variable throughout the length of the agreement, however, you still pay a fixed monthly payment each month and at the end, any variation of interest is adjusted and reconciled, either as a credit or debit accordingly.
Key Benefits to Balanced Payments
- Flexible – If you are in a job where you receive a bonus or future salary increase, after the first year you can make occasional lump sum payments, thus reducing the balance owed.
- Significant savings with low Interest Rates – Bank Of England base rates are currently very low, however most fixed interest rate agreements haven't dropped by as much, but because Balanced Payments tracks the LIBOR rate, this is significantly lower than most fixed rate finance offerings.
- Fixed monthly payment - perfect for budgeting.
- Residual Values – This agreement can be offered with or without a RV or Residual Value.
- Assets - after the final payment has been made to the lender, you own the car outright.
- VAT – No VAT charged on this product.
When you know the make & model of your chosen vehicle, for a balanced payments quote, call us free on 0800 043 4340 or 01925 589020 to speak to a dedicated adviser.
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