How it works
Contract purchase is a conditional sale agreement with a balloon payment at the end of the contract if you choose to purchase the vehicle. This is made under a separate re-purchase agreement for a pre-determined price, removing the risk of depreciation. Alternatively the vehicle can be returned to us.
You can also choose to add on extra maintenance and tyre services under a separate agreement, along with other services such as road risk management, fuel management and daily rental services.
As with contract hire, it brings operational benefits including reduced administration, giving you the chance to focus on your everyday business.
As the vehicles are classed as being on balance sheet, they are eligible for capital allowances whilst you also benefit from only paying VAT on the maintenance element and not the depreciation or funding.