Contract Purchase

• Low initial payment
• No capital investment
• Capital allowances on full vehicle cost
• All advantages of ownership
• Budgeted transport costs
• Full maintenance
• No disposal problems
• Improved cash flow
• Minimised administration
• No VAT on finance payments

Low initial payment
On a typical Contract Purchase Agreement, the initial payment required is normally equal to just a few months’ rentals.

No capital investment
Switching customer expenditure to revenue budget means off balance sheet financing and no capital investment.

Capital allowances on full vehicle cost
As the vehicle is being purchased capital allowances may be claimed on the full cost of the vehicle.

All advantages of ownership
Contract Purchase gives you all the advantages of ownership and unrestricted use of the vehicle without the administration costs and the risk of depreciation.

Budgeted transport costs
A Contract Purchase Agreement enables you to forecast your transport costs. The desired amount of control of further costs can be determined by the services required.

Full maintenance available
A complete maintenance package designed to suit the particular needs of your business.

No disposal problems
Built into the agreement is a guaranteed buy-back facility and an option for you to purchase the vehicle(s) should you so choose. With a buy-back facility we assume the financial risk of disposing of the vehicle without any cost to yourselves.

Improved cash flow
The availability of variable length contracts and the low initial payment required enables an improved cash-flow to be obtained.

Minimised administration
Contract Purchase can reduce routine administration tasks such as invoice checking, operating cost records, buying, selling and maintaining fleet.

No VAT on finance payments
Since the agreement is essentially based on a purchase scheme, VAT is not chargeable on the finance payments.

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