Contract Purchase
Contract Purchase is a leasing option available to businesses. It offers many of the 'no risk' advantages of Contract Hire.
Benefits of Contract Purchase
The main benefit is that businesses pay a fixed monthly cost for each vehicle. This enables you budget and forecast accurately.
Contract Purchase also gives you the option to purchase the vehicle at the end of the contract or hand it back.
The main points
- The vehicle will appear on the balance sheet as an asset
- Tax writing down allowances can be claimed
- VAT is charged only on the maintenance package (if opted for)
- You will receive road tax for the duration of the contract
- You have the option to include a maintenance package (servicing, replacement parts and tyres
- You have the option to include breakdown cover and replacement vehicles
What happens at the end of the lease?
Contract Purchase gives you the option to purchase the vehicle at the end of the contract for a guaranteed price.
You also have the option to hand it back at the end of the contract should you wish to do so.
Other leasing options
For information on other finance types (including Contract Hire, Finance Lease and Lease Purchase), read our leasing finance pages.
Top tip - Take a look at our leasing finance comparison chart. This useful chart will help you compare leasing options at a glance.
Unsure which option is right for your business?
Then call us on 0845 052 5268 or send us an enquiry - We'll happily go through the different options with you.
