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23rd Jan 2020 - Follow us on Twitter @firstcarleasing for the most up to date offers

First Car Leasing

Contract Purchase

Contract Purchase - Business

Contract Purchase provides the same operational benefits of Contract Hire, with the main difference being that the vehicle is on the balance sheet.

In the same way as in Contract Hire the terms of the contract are based on age and mileage, which in turn will establish the residual value or balloon payment. This figure represents the provider's opinion of what the vehicle's value will be at the end of the agreement.

Again, as with Contract Hire, you have a low deposit and an attractive monthly rental with the option of a maintenance package. Contract Purchase is available for both new and used cars (up to four years old). At the end of the agreement you have two main options.

  • Pay the Balloon Payment in full and take ownership
  • Return the vehicle back to the provider with nothing else to pay

Your monthly payments are allowable against tax. You are also allowed to reclaim VAT on the maintenance element. This contract is ideal for people wanting to opt out of the company car scheme as you can utilise your company car allowance to settle your Contract Purchase payments without having to pay company car tax.

Benefits of Contract Purchase:

  • Low initial deposit
  • Fixed monthly payments
  • Writing down allowance
  • Interest charges can be offset against tax
  • No risk on residual value
  • Optional final payment
  • No restriction on make or model
  • Alternative credit line
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