Vehicle Contract Purchase

Product Description

Vehicle Contract Purchase is the perfect solution for companies or individuals who prefer ownership, but still want many of the benefits afforded by Contract Hire. It offers:-

  • The opportunity of purchase with some of the key benefits of hiring
  • Optimum versatility
  • Regulated and controlled cashflows
  • Controlled disposal or depreciation problems
  • Enhanced budgeting.

The Way It Works

When you choose your vehicle a minimum future value is set for what the vehicle should be worth at the end of the agreement (this is known as The Optional Final Purchase Payment). The future value has the effect of reducing your monthly repayment, as a large proportion of the vehicle’s value has been deferred for payment until the end.

End Of The Contract

When the end of the contract has been achieved you may:-

  • Keep the vehicle simply by paying the Optional Final Purchase Payment; any profit achieved at this point belongs entirely to you (this option includes part exchanges)


  • You may return the vehicle with nothing further to pay if market conditions dictate that the vehicle is worth less than the Optional Final Purchase Payment.

For the latter option the vehicle must be returned in a decent condition, and with your agreed mileage band not exceeded.

The system offers maximum flexibility, and the ultimate choice is yours.

Product Benefits

  • Reduced exposure to risks - A Contract Purchase facility will ensure you are not exposed to any unnecessary risk when disposing of your vehicles; when coupled with an all inclusive contract, unforeseen maintenance risks are completely eliminated
  • No VAT – Contract Purchase attracts no VAT charges on the capital element of the rental, making it ideal for companies and individuals who are partially or wholly VAT exempt.


Use our vehicle finance form and we’ll get the right deal for you.

Our Vehicle Finance solutions fall into six main categories: Hire PurchaseLease PurchaseFinance LeaseContract HireContract PurchaseSale & Lease-back