- Contract Hire
- What is Contract Hire?
- Contract Purchase
- Lease Purchase
- Finance Lease
- Contract Options
Contract Purchase
What is Contract Purchase?
Contract Purchase enables customers to acquire a car by paying fixed monthly instalments. Customers can either return the car at the end of the contract or purchase it at a stipulated cost; agreed upon; before commencement of the contract. Contract purchase agreements also offer optional maintenance packages and value added services to suit customer requirements.
Who can benefit from Contract Purchase?
Contract Purchase is the best option for companies who would like to purchase the car and retain it as an asset at the end of the contract.
Prominent Features of Contract Purchase
Flexible Contracts: Contract Purchase Agreements allow customers to return the vehicle or purchase it at a stipulated value; at the end of the contract.
Low initial deposit: Usually initial deposit amount is equal to a few months rental.
Ownership: Customers can enjoy ownership at the end of contract provided all the terms and conditions of purchase are fulfilled.
On Balance Sheet: Customers are required to show the car as a balance sheet item and can write down the value against taxable profits.
Maintenance: Customers can select one or more features offered in the maintenance and service packages as part of the monthly instalments.
No Disposal Issues: If the customer does not wish to retain the car at the end of the contract, the leasing company will purchase it at the stipulated value. Hence, risks associated with resale values are not transferred to the customer.
Car Leasing UK’s qualified staff will guide you on all aspects of Contract Purchase. Call us today, if you require any further details of Contract Purchase or a no obligation quote.
