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Business Contract Purchase

Business Contract Purchase

Contract Purchase (CP) is an alternative type of agreement avoiding any depreciation risks

Regular monthly payments are not subject to any VAT amounts, however if Service packs are taken these may attract a VAT element.

Advantages:

  • Initial payments can be tailored to suit budgets
  • Regular fixed monthly payments for the contract duration
  • Choice of options at the end of the contract
  • Service, Maintenance and Tyre packs can be added if required
  • End Balloon rental is agreed at the outset

Disadvantages:

  • End of contract decisions can be confusing

More Information on Business Contract Purchase:

Contract Purchase is ideal if you would like an option to purchase at the contract end. Contract Purchase agreements involve an initial payment then fixed rentals for the remainder of the agreement until the O.F.P (Optional Final Payment) at the end at the end of the contract which can also be described as the G.F.V (Guaranteed Future Value).

There is an option to enable a trade in with the Contract Purchase scheme, this trade in value can usually be used as a deposit amount or many dealerships may offer a direct purchase scheme.

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