Contract Purchase

This is an ideal method of funding for those companies who cannot fully reclaim VAT and is particularly suitable for financing the more expensive cars on the fleet. The difference between Contract Purchase and Contract Hire is that you can become the legal owner after paying the Final Payment or 'Balloon Payment' as it is more commonly known. The Final Payment is a Guaranteed Future Value and calculated based on your anticipated total contract mileage.

Suits

• Non Vat registered companies
• Businesses wishing to avoid taking the risk on the vehicles depreciation
• Businesses requiring legal ownership after all payments have been met
• Vehicles with a Capital Cost in excess of approx. £25-£30,000

Benefits

• No residual value risks
• Full maintenance and road tax renewal etc. can be included
• Option to buy vehicle when contract expires
• Fixed monthly payment
• Low deposit