CONTRACT PURCHASE

This is similar to Contract Hire but without the VAT saving on the monthly payments, there is an option to purchase the vehicle at the end of the period for a pre-determined fixed amount or you may simply return the vehicle.

FEATURES

ON BALANCE SHEET FUNDING

Vehicles are shown on balance sheet as assets.

NO VAT PAYMENTS ON MONTHLY RENTALS

There are no VAT payments on the monthly payments so ideally this is best for non-VAT registered companies, however, fully maintained contracts do attract VAT on the maintenance element.

END OF CONTRACT OPTION TO PURCHASE

At the end of the agreement a pre-determined final balloon payment is due which upon payment will pass ownership to the user, however, you may simply return the vehicle to the finance company.