Contract Purchase

Contract Purchase provides the same operational benefits of Contract Hire, with the main difference being that the vehicle is on the balance sheet.

In the same way as in Contract Hire, the terms for contract purchase are based on pre-arranged contract length and age and mileage on return, which in turn will establish the residual value or balloon payment and offers the ability to defer this value until the end of the agreement. Again as with Contract Hire you have a low initial payments and an attractive monthly rental with the option of a maintenance package. Contract Purchase is available for both new and used cars (up to four years old). At the end of the agreement you have two main options.

  1. Pay the Balloon Payment in full and take ownership
  2. Return the vehicle back to the provider with nothing else to pay

Your monthly payments are allowable against tax. You are also allowed to reclaim 100% VAT on the maintenance element.

Benefits of Contract Purchase

  • Low initial deposit
  • Fixed monthly payments
  • Writing down allowance
  • Interest charges can be offset against tax
  • No risk on residual value
  • Optional final payment
  • No restriction on make or model
  • Alternative credit line