Contract Purchase Explained

Contract Purchase Explained2016-12-12T19:59:38+00:00

Contract Purchase Finance Explained

This type of finance agreement is suited to companies who are wholly or partially VAT exempt. It is also suited for high value cars where the company want to own their vehicles, but don’t want the risk of depreciation.

The company pay fixed monthly instalments and can either pay a predetermined value and retain ownership at the end of the contract or hand the vehicle back. With Contract Purchase the vehicle is shown as an asset on the balance sheet and the monthly rentals are not subject to VAT.

Key features

  • Flexible term and mileage – fixed instalments
  • Flexibility at the end of the agreement to either purchase the car for the predetermined optional final ‘balloon’ payment or simply return the car to the finance company
  • Maintenance and other added value services can be included

Key benefits

  • Low initial outlay
  • Ownership passes to the customer on completion of payments
  • On-balance sheet treatment with writing down allowances for accounting purposes
  • Finance Rentals not subject to VAT

To enquire about finance for any make and model car, van or light truck please complete and send this form or call us on 01824 719005

Your Name*

Your Email Address*

Your Telephone Number*

Car Make (e.g. BMW)*

Model (e.g. 520)*

Finance Type* Not KnownContract HirePersonal Contract HireContract PurchasePersonal Contract PurchaseFinance LeaseLease or Hire PurchaseFlexible Lease

Period of Hire* 24 Months36 Months48 Months

Annual Mileage* 5,0008,00010,00012,00015,00020,00025,000

Maintenance* With MaintenanceWithout Maintenance

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