Contract purchase
Contract purchase is a hybrid agreement that provides the administrative advantages of contract hire, but is actually a conditional sale. This means that you avoid VAT on the funding costs and depreciation.
Under a contract purchase agreement, you make a fixed monthly payment based on a fixed contract term and an anticipated mileage. A final, or 'balloon', payment is set at the beginning of the contract based on the predicted residual value of the vehicle at the end of the contract.
At the end of the payment period you can either buy the vehicle, or return it to us. As in contract hire, you can include additional services in the contract, such as maintenance management, accident management and so on.
Contract purchase is ideal for organisations who are not registered for VAT, such as charities, or for customers who are looking for more expensive vehicles.
Contact us today to determine which funding method is most appropriate for your business.
