Contract Purchase A purchase agreement (conditional sale) that includes a guaranteed resale value of the vehicle. Can include or exclude maintenance cover.

Benefits Things you need to know Can provide all the administration benefits of contract hire with the benefits of ownership. Fixed monthly payment provides better cash flow forecasting. Is shown as a company asset on your balance sheet thereby attracting standard capital allowances and interest can usually be offset against Corporation Tax liabilities. VAT is not applied to the finance part of the payment. Freedom from disposal worries and risk as this is the job of the leasing company if you opt to return the vehicle. It is a fixed contract to term and mileage but these can be amended by changing the payment. There will be a charge if you return the vehicle. If you damage the vehicle, it needs repairing and it is your fault then this is not covered under the maintenance contract. Glass and windscreen replacement is not covered under the maintenance contract. Not all manufacturer bonuses apply to contract purchase. If you return the vehicle in a damaged condition and it affects the resale value then you may be liable for the bill.