Contract Purchase incorporates all the management and administration benefits of Contract Hire with the tax advantages of ownership. Contract Purchase is best suited to companies which are either unable to claim back VAT or require more expensive vehicles. The asset appears on the company Balance Sheet and Writing Down Allowances can be offset against taxable profits, subject to IR legislation.

The customer achieves ownership of the vehicle with the payment of the "balloon" figure (disclosed from the outset of the contract) or alternatively hands the vehicle back with no charge (subject to the terms of the contract).

Benefits

• Minimal initial outlay, typically 3 months repayments
• Fixed cost allows accurate budgeting
• Elimination of Residual Value risk
• Elimination of Maintenance risk(if selected)
• Minimal Administration
• Writing Down Allowances offset against taxable profits
• Subject to IR Legislation
• Major Fleet discounts incorporated within the repayment