Buy Supercar Outright OR Lease Purchase Balloon (Advice)

[oo7ml]

Hi,

I'm somewhat new to the forum, so a BIG thank you to all who have replied to my posts so far, it's much appreciated... and apologies to those who are getting tired of my excitement and questions :-)

I'm hope to pull the trigger early in the new year. I'm trying to decide whether to buy the car outright or avail of a finance option, particularly the Lease Purchase Balloon option?

DISCLAIMER
Please lets not get into a debate about being in a position to 'afford' such a the car or not. It's a case of being smart with your money and weighing up whether or not to put £200,000+ cash straight into a car, or avail of a finance option... no matter how much cash you have in the bank. I have and continue to work very hard at what I do, and I am very lucky to be in a position to buy such a car, but it has come from hard work, and not from my parents or anyone else. Hence, I want to explore all options before choosing the right car and the right option to purchase it.

QUESTION
How does the Lease Purchase Balloon option work? Let's use the following numbers as an example:

- Car: £200,000
- Deposit: £50,000
- Finance: £150,000
- Term: 24 months
- Balloon: £110,000
- Monthly: ?

A - what exactly is a 'balloon' in terms of Lease Purchase?
B - what happens at the end of the 24 months?
C - what is the monthly repayment / figure based on?

Thanks again for your help

[oo7ml]

Thanks all... that’s a massive help, thanks.

[oo7ml]

Never you mind said:

Surprised there hasn't been the usual, if you can't buy it outright don't buy it posts. Anyway, OP, speak to JBR Capital they will explain all the options open to you.

There hasn't been any comments on this, because I outlined it in the orginal post.

It's not a case of not being able to afford the car... I am grateful that I am in a position to buy it outright, BUT because financing part of a car means that you have more cash in the bank, I view it as should I finance half of it, so that I have an extra £100,000 in the bank account which I am confident will earn more than 30% interest by using that money for something else (an investment) VS paying 8% interest on borrowing £100,00

i.e - it's 8% cost vs 30% gain

[oo7ml]

troika said:

If you are going Lease Purchase (with or without balloon), use a balanced payments agreement to keep flexibility i.e. variable rate interest so you can overpay / clear at any time with no penalty.

Thanks Troika, would you mind elaborating on this a little further please, thanks again.