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Leasing Guide
Alfa Romeo Car Leasing, Aston Martin Car Leasing, Audi Car Leasing, Bentley Car Leasing BMW Car Leasing, Citroen Car Leasing,
Fiat Car Leasing, Ford Car Leasing, Honda Car Leasing, Jaguar Car Leasing, Land Rover Car Leasing, Lexus Car Leasing, Mazda Car Leasing,
Mercedes Car Leasing, Mitsubishi Car Leasing, Nissan Car Leasing, Peugeot Car Leasing, Porsche Car Leasing, Renault Car Leasing,
Saab Car Leasing, Skoda Car Leasing, Toyota Car Leasing,Vauxhall Car Leasing, Volkswagen Car Leasing, Volvo Car Leasing
We are an appointed broker of Lombard North Central PLC
Who can benefit from
Contract Purchase?
Contract Purchase is the best option for companies who would like to purchase the car and retain it as an asset at the end of the contract.
AT A GLANCE
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Vehicle Owned by? CLIENT
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Off Client’s Balance Sheet? NO
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Residual Risk to Client? YES
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Mileage and Wear Limitations? YES
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At the car Leasing Centre we not only offer Contract Hire but Contract Purchase as well. Contract Purchase enables customers to acquire a car for a fixed period and a specified mileage, by paying fixed monthly installments, at the end of the contract you have an option to purchase the vehicle for a balloon payment
FEATURES
Contract Purchase has been developed to address the disadvantages of leasing high priced cars by mirroring many of the operational and administrative benefits of Contract Hire, but at the same time mitigating taxation in two specific areas, VAT and Corporation Tax.
The contract is written as a Conditional Sale agreement. Essentially this means that the Fleet Management Company sells the vehicle to the client company.
After a payment to finalise the agreement, the client may exercise an option for the Fleet Management Company to dispose of the vehicle on his behalf or the user can retain the vehicle or dispose of it himself.
One regular payment covers funding, road fund licence, maintenance and depreciation up to an agreed age and mileage for excess mileage if the customer opts to return the vehicle rather than purchase it for the pre-determined residual value.
Contract Purchase has been developed to address the disadvantages of leasing high priced cars by mirroring many of the operational and administrative benefits of Contract Hire, but at the same time mitigating taxation in two specific areas, VAT and Corporation Tax.
The contract is written as a Conditional Sale agreement. Essentially this means that the Fleet Management Company sells the vehicle to the client company.
After a payment to finalise the agreement, the client may exercise an option for the Fleet Management Company to dispose of the vehicle on his behalf or the user can retain the vehicle or dispose of it himself.
One regular payment covers funding, road fund licence, maintenance and depreciation up to an agreed age and mileage for excess mileage if the customer opts to return the vehicle rather than purchase it for the pre-
