Contract Purchase

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About Contract Purchase

Contract Purchase is mostly suitable for businesses where reclaiming VAT is not required. It is made up of fixed monthly payments over a fixed term at a fixed rate, and for an agreed mileage. As in a Finance Lease the user may share in any benefits of the disposal of the vehicle, but unlike it, will not bear the risk of any shortfall.. At the end of the contract the user has the option of buying the vehicle with a final balloon payment which is predetermined as a guaranteed future value at the outset, or of returning the vehicle. Contracts can include maintenance and Graduated Vehicle Excise Duty (Road Tax). The vehicle is shown on the balance sheet and capital allowances can be claimed. (Please refer to the section on Lease Purchase for a full explanation of how this works)

Personal Contract Purchase

The same as Contract Purchase but where VAT, accounting and taxation considerations are excluded.

Follow the links below to see explanations of different vehicle contracts:

Contract Hire - Suitable for most businesses, almost half of the UK fleet market uses this option....

Personal Contract Hire - Personal Contract Hire is popular with individuals and employers who want to substitute a cash allowance for the traditional benefit of a company car....

Contract Purchase - Contract Purchase is mostly suitable for businesses where reclaiming VAT is not required

Lease Purchase/Hire Purchase - If you wish to keep vehicles as a business asset....

Personal Lease Purchase/ Hire Purchase - This type of agreement is available to private individuals....

Finance Lease - An alternative to Contract Hire where the hirer has the option of paying back the capital cost of the vehicle over a longer period....

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Car Leasing & Contract Hire prices for business are quoted net of VAT. Personal Car Leasing & Personal Contract Hire prices are inclusive of VAT. Lease rentals shown are based on 10,000 miles per annum, with an initital payment of 3 monthly rentals, without maintenance, inclusive of GVED (Road Tax) throughout the contract. Pictures shown may differ slightly from offer models. Please make sure you check all quotations carefully and ensure you have clearly written terms before entering into any vehicle contract. Our staff will always give you impartial advice.

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