Balanced Payments is similar to a capital repayment mortgage, and is perfect for the company or “opt out director” who does not intend to keep the vehicle for a fixed period.
Each month, the interest is calculated on the remaining capital balance so you are repaying a substantial amount of capital in each monthly payment. If you want to settle the lease early, then typically only one months interest would be charged together with the outstanding capital balance.
A deferred balloon payment based on the anticipated value of the vehicle can be included, to help keep monthly payments low.
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office suite 17, europa house, barcroft
street, bury, manchester, lancashire BL9 5BT UK tel 0161
447 8973 fax 0161
447 8974 sales@3arrows.co.uk
