Contract Purchase (CP)
......For companies who prefer to keep their options open
Contract Purchase is popular with companies who would like the option or owning a vehicle at the end of their lease or whom are unable to take advantage of the VAT benefits associated with Contract Hire.
This type of agreement operates in a similar way to Contract Hire, with the major difference that companies have the option to buy the vehicle at the end of the term for an amount which is guaranteed at the start of the agreement. This final 'balloon' payment would make you the legal owner of the vehicle, or alternatively the vehicle can be returned to the leasing company with nothing more to pay*
Regular payments are fixed at the start of the lease term, and remain unaffected by changes in the used car market or interest rates. Payments are determined from the original cost of the vehicle, period of use, forecast contract mileage and final 'balloon' payment.
Contract Purchase offers all the operational, managerial and administrative benefits of contract hire, together with the tax-efficiency benefits of ownership, such as the ability to claim capital allowances. Contract Purchase is ideal for companies that cannot fully reclaim VAT.
Road Tax is normally included for at least the first 12 months. Fixed cost maintenance, breakdown recovery and a host of other services are also available through Concept Serviceplan.
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Key Benefits |
- Fixed cost for the duration of contract
- Flexible terms and mileage to suit your business
- Low Initial Outlay
- Option to own vehicle at the end of term, or to hand vehicle back
- Full maintenance & fleet management available through Concept Serviceplan
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- Accurate budgeting unaffected by interest rate changes
- Contracts range from 2-5 years/6,000 to 50,000 miles per annum
- Initial rentals as low as 1 month/ deposit of your choice is available
- Keeps your options open if you are unsure at to whether you wish to own the vehicle at the end of term
- Complete Peace of Mind
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Available on all Cars and Commercial Vehicles.
*Subject to dilapidation/excess mileage charges.
Document downloads:
Concept Vehicle Leasing - Brochure (919KB)