Contract Purchase
Contract purchase.
A smart choice for financing the more expensive vehicles on your fleet and for companies that are restricted in the amount of VAT they can reclaim.
How does it work?
We supply you with the vehicle for a set period and you pay a fixed amount each month. At the end of the contract, you have the option of either owning the vehicle by making a balloon payment, or simply returning it to us with nothing more to pay. If you return the vehicle and we sell it for more than the balloon amount, you receive an element of the profits. If we sell it for less, we absorb the loss.
Benefits.
Tax advantages of ownership throughout the contract, such as claiming capital allowance.
The option to take full legal ownership at the end of the contract.
Low initial payment, typically equivalent to three monthly finance payments.
Removes financial risks associated with vehicle disposal if you hand the vehicle back.
Maintenance cover and breakdown cover and relief vehicle can be included in the fixed monthly rate.
Fixed monthly outgoings for easier budgeting.
Flexible contracts to suit changing circumstances in your business.
The buying power of a major fleet operator.
Contract purchase offers all of the operational, managerial and administrative benefits of contract hire, together with the tax-efficient benefits of ownership.