Contract Purchase

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Contract Purchase offers a tax efficient form of funding, with all the benefits of non-maintenance contract hire, especially for higher value vehicles. An added attraction is the accountancy treatment offering a potentially off-balance sheet facility, subject to auditor's approval. Many business users would like to benefit from having the future residual value removed from their balance sheet.

A choice is provided at the end of the agreement. For a small fee payable at the end of the contract, you can enter either into a sales agency agreement, enabling you to either return the vehicle to your appointed garage so we may sell it on your behalf, or make an additional payment (plus any excess mileage charge) so ownership of the vehicle may be transferred to you. Of course you can also part exchange the motor car using any equity towards a deposit on a replacement vehicle.

Very simply, the plan provides a new or used motor car with a range of repayment schedules to suit different business requirements. A final payment will be agreed at the outset of your contract, along with the period, deposit and the proposed annual mileage. The final payment will be set and remain fixed throughout the length of the period, regardless of any changes in the market place or economy, and will be 'guaranteed' by the underwriters.

With this facility there is a distinct advantage because if the vehicle is sold for a greater value, net of disposal costs, any remaining sum will be returned to you.
This facility also offers reduced VAT liability for VAT exempt and partially exempt companies that may prove an additional benefit.

 

For more information Telephone Pat or Jonathan Lawless 9.am to 5.30pm 01335 360763 / 360022 Mon-Fri. Out of hours 07918 756002 Fax: 01335 360088