Finance Options
Contract purchase offers all the ownership advantages of hire purchase but with
added flexibility. A guaranteed value for the asset at the end of the agreement
means that regular repayments are reduced. At the end of the term you can decide
whether to keep the asset and pay off any balance, sell it and settle the
outstanding balance (retaining any profit) or simply return it with nothing more
to pay.
As per contract hire, you choose the vehicle, we purchase the vehicle on
your behalf, you pay a fixed monthly fee over an agreed term and mileage. At the
end of the contract you can either hand the vehicle back or pay the optional
balloon payment to take ownership of the vehicle. If you decide to purchase the
vehicle at the end of the contract the balloon payment can be re-financed if
necessary. Also a very popular option, and with the added twist of an option to
purchase.
This is also available on both personal and business contracts. Unlike
contract hire there is only a minor v.a.t element in contract purchase
agreements (on the auxillary costs, tax disc, servicing etc). This means that
the monthly costs are not subject to any v.a.t rises or reductions that may
occur in the future (except on auc costs). The option to purchase is only an
option and 9/10 customers hand the vehicle back and look to take a new vehicle
at contract end. If you have no intention of buying we would advise taking the
contract hire agreement instead.