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Vehicle Contract Purchase |
Vehicle Contract Purchase Key Features and benefits
This is the solution for companies who want to own their vehicles but want to avoid the risk of depreciating assets.
Similar benefits to contract hire regarding fixed payments and flexible terms.
• Maintenance and added value services can be included if required.
• The leasing company will guarantee the resale value of the vehicle at the end of the contract purchase agreement for a known, fixed amount.
• Ownership passes to the customer at the end of the agreement when all payments have been made.
Triple Choice
An instalment credit facility with a choice of disposal options giving you flexibility at the end of the agreement. A guaranteed residual value built into the agreement helps improve cash flow making the asset more affordable. |
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This product is only available to non-regulated customers.
Key Features and benefits of vehicle contract purchase
• You may eventually own the asset enabling you to claim writing down allowances.
• You control the value of the asset at all times.
• Flexibility - you have the luxury of being able to 'wait and see' before deciding what you want to do with the asset at the end of the agreement.
• Fixed rate only.
What tax allowances can I claim?
You can normally claim writing down allowances on the cash price of the asset shown in the agreement. The interest element of your repayments is usually allowable against profit.
Can I reclaim the VAT charged on the payments?
Providing you are registered for VAT, you can normally claim back the VAT payable on the purchase price of the assets. Special rules apply to company cars.
What if the asset is lost, stolen, damaged or destroyed or becomes subject to a total loss claim during the period of the lease?
You are responsible for the asset and for any outstanding balance on the agreement. Comprehensive insurance, covering at least the full replacement cost of the asset, is therefore vital.
Who is responsible for servicing and repair?
Unless you have servicing and maintenance built into your agreement, you are responsible for maintaining the asset in good condition. If you fit any replacement or additional parts to the asset, they become the property of the leasing company.
What are the options at the end of the agreement?
1. You can return the asset,
2 . You can keep the asset by paying off the guaranteed residual value, or
3 . You can sell the asset and repay the residual value.
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Great British Finance Limited are authorised and regulated by the Financial Services Authority
(FSA). The FSA does not regulate some forms of Mortgage, Inheritance Tax Planning, Credit
Cards, Personal Loans, Deposit Accounts & Insurance. If you are submitting an online request,
we would advise to read our KeyFacts statement, links are at the top of this page.
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