Is it for me?
Contract purchase is an ideal choice for those organisations that are wholly or partially VAT exempt, and for those that have vehicles with a high capital cost. The operational structure provides the same facilities as contract hire.

Benefits

• Fixed costs help you manage your cash flow
• You only pay VAT on maintenance costs
• Your fleet is shown on the balance sheet 
• No risks in administering, maintaining and particularly disposing of your fleet
• Flexible end of contract options
• You are free from the risk of falling residual values
• Reduces administration and day-to-day management

How does it work?
Your fixed monthly payment is based on the cost of the vehicle, its rate of depreciation, contract length, mileage and any additional services. At contract end, you have four options:

1. Make the final 'balloon' payment and keep the vehicle
2. Extend your contract
3. Trade the vehicle in and use any available equity as a deposit for your next vehicle
4. Return the vehicle without making the final 'balloon' payment