Looking for a smart way to finance your next car? Our contract purchase option is one of the most popular ways to fund a new or used vehicle, giving you lower monthly payments and the flexibility to choose what happens at the end of your agreement.

Because this type of finance includes a Guaranteed Future Value (GFV), a portion of your car’s cost is deferred until the end of the term as an optional final payment. This means your payments are much lower than a conventional Hire-purchase facility.

If you decide you’d like to own the car outright at the end of the agreement, you can do so with the final payment. Alternatively, you can hand it back or part-exchange it for something new – the choice is yours.

Is It Right for You?
This type of finance is ideal if you want lower monthly payments than a hire purchase (HP) agreement and the flexibility to decide at the end of the term whether to keep, return, or upgrade your vehicle.

If your car is worth more than the Guaranteed Future Value (GFV), you keep the difference. If it’s worth less, you can simply return it without any further financial obligation (apart from any excess mileage or damage charges).

At One Threadneedle we’re dedicated to helping customers find the right financing solution for their next vehicle. That’s why we offer Lease Purchase, a flexible option that blends the benefits of both leasing and buying.

With this arrangement, you make fixed monthly payments over a set period, just like a lease, covering interest and fees along the way. But unlike a traditional lease, at the end of the term, you have the opportunity to take full ownership of the car by making a final lump sum payment—often referred to as a balloon payment.