Business Contract Purchase (CP)

Applicable to Sole Traders / Partnerships and Limited Companies

About Contract Purchase

Contract Purchase is our product which is aimed at business customers who wish to make fixed monthly payments towards eventual ownership of a vehicle, whilst retaining the option to return the vehicle at the end of their contract.

As an alternative to Contract Hire (pure leasing agreement), this product is ideal for sole traders/ partnerships and limited companies who would like a vehicle and the option to purchase it at the end of the contract but do not want the associated depreciation risks.

With Contract Purchase a final payment in set in line with the expected value of the vehicle based on contract duration and your mileage requirements. At the end of the contract this then gives you two options

• Hand the vehicle back to the funder should the value of the vehicle be less than the set final payment. If electing for this option you should be aware that the vehicle will be subject to an inspection for damage and a mileage check versus your contracted mileage. Charges will be applicable if the vehicle is returned outside of BVRLA Fair Wear & Tear guidelines and if the vehicle is returned over the contracted mileage.
• Alternatively you may choose to pay the option to purchase fee and the final rental. The funder will then transfer ownership of the vehicle to you, allowing you to keep the vehicle or sell it for use as a deposit for your next vehicle.
• You need to decide at the end of the contract whether to sell the vehicle, return it or keep it
• You must have a fully comprehensive vehicle insurance

Additional Features

• Road Fund Licence is provided for the full term of the contract.
• Maintenance can be added as an option to include all servicing tyres etc

Things To Remember

• You need to decide at the end of the contract whether to sell the vehicle, return it or keep it
• You must have a fully comprehensive vehicle insurance