What is a lock period and is a lock period mandatory?

Is a final instalment obligatory with Financial Lease?


No, with Financial Lease a final instalment is not obligatory. You are free to choose whether or not to include a final instalment in your lease agreement. This gives you flexibility in determining your monthly instalments and the expiry of the contract.

A final instalment is an outstanding amount at the end of a Financial Lease contract. A final instalment allows you to reduce the monthly lease amount. After paying the final instalment and the last monthly instalment, you become the legal owner of the car. A final instalment is optional, it is up to you whether you want to include it in the contract.

This allows you to reduce the monthly costs, because you pay off part of the borrowed amount at the end of the term in one go. This can be useful if you expect the car to retain a certain residual value at the end of the contract.

Whether or not you choose a lock period depends on your financial situation and your specific needs. Our expert account managers are on hand to guide you and discuss the best option for your situation.