Finding the right car can be a challenge, and part of that challenge is deciding how to pay for it. We can help you facilitate this challenge by helping you get through the payment options available to help you discover what the best balanced payment plan, also known as the Hire Purchase variable rate with the option of a balloon, offers the benefit of fixed monthly repayments at a variable rate. Unlike a fixed-rate financing product, a balanced payment plan follows any change in the basic Finance House or London Interbank Offered Rate (LIBOR) rate depending on your agreement. If the rate goes up or down, the total amount of interest you pay also increases or decreases. Other options available with the balanced payment plan are a deferred “balloon” payment. Balanced Payment Finance offers the benefits of a fixed monthly payment, linked to a variable rate. Unlike fixed-rate products, a balanced payment plan tracks changes in the lender`s benchmark interest rate. This means you could pay a small $20 deposit for a car worth $5,000, the rest with a debit card, while having credit card payment protection. Balanced payment plans with a final “balloon” payment are also available. If you are able to make your payments by car, talk to your financial company or lender as soon as possible. You may be able to return the car or prepay the loan. Learn more about the early termination of leases on our “Reducing Auto Financing Costs” page. If you purchased a car through a financing contract such as personal contract purchase (PCP), personal rent (PCH) or rental purchase, the financial company owns the vehicle during the contract.
This means you can`t sell it and if you come back with your refunds, you risk losing your car. At the end of the agreement, any change in interest rates (increase or decrease) is coordinated and offset either in credit or as a charge for your final payment. This could mean that you are subject to other payments if the rate increases over time or less payments if the rate decreases over time. The Balanced Payment Plan provides a practical method for CEC members to distribute their electricity payments evenly over the year. You pay a first deposit, then the balance in fixed monthly payments over an agreed term (24-60 months).