What is LP Finance?
LP stands for Lease Purchase. It is a type of vehicle finance that combines fixed monthly payments with a larger final payment at the end of the agreement.
LP can help reduce monthly payments compared with traditional HP, because part of the balance is deferred until the end.
Unlike PCP, LP is usually designed for customers who intend to keep the vehicle, as the final payment is normally required.
How LP works
- Choose the vehicle you want to finance.
- Agree your deposit, term and final payment.
- Make fixed monthly payments during the agreement.
- Pay the final balloon payment at the end.
- Once complete, the vehicle becomes yours.
Why choose LP?
- Lower monthly payments than some HP agreements.
- Clear route to ownership.
- Useful for higher-value vehicles.
- Fixed monthly payments help with budgeting.
- Good if you plan to keep the vehicle long term.
LP vs HP vs PCP
LP, HP and PCP all help spread the cost of a vehicle, but the structure and end options are different.
| Feature | LP | HP | PCP |
|---|---|---|---|
| Monthly payments | Reduced by deferring a final payment. | Usually higher. | Usually lower. |
| Final payment | Required at the end. | No large balloon payment. | Optional final payment if keeping the car. |
| Ownership | Designed for ownership. | Designed for ownership. | Optional ownership. |
| End options | Pay the final payment and keep the vehicle. | Keep the vehicle after final payment. | Keep, part-exchange or hand back. |
| Best suited for | Drivers wanting ownership with lower monthly payments. | Drivers wanting simple ownership. | Drivers wanting flexibility. |
Finance is subject to status. Terms and conditions apply. Concierge Motor Finance acts as a broker, not a lender.
