What is contract hire purchase?
Contract Hire Purchase is the perfect solution if you prefer to own your vehicles, but still require the benefits of Contract Hire.
What does Contract Hire Purchase offer?
- The opportunity of purchase with some of the benefits of hiring.
- Versatility and flexibility.
- Regulated cash flow.
- Control over disposal or depreciation problems.
- Enhanced budgeting.
A ‘funding only’ option can also be provided for those who wish to retain control of their vehicle maintenance.
How does it work?
You choose a vehicle and a minimum ‘future value’ is set for what the vehicle should be worth at the end of your agreement. The ‘future value’ of the vehicle reduces the monthly repayment as a large proportion of the vehicle’s value is deferred for payment until the end of your contract.
What happens at the end of the contract? You may keep the vehicle by paying off the agreed ‘future value’.
You may return the vehicle with nothing further to pay – as long as the vehicle is worth less than the agreed ‘future value’, is in good condition and the agreed mileage band is not exceeded.
What are the benefits of Contract Hire Purchase?
- You are not exposed to unnecessary risk when disposing of your vehicles and unforeseen maintenance risks are eliminated.
- Contract Hire Purchases are not liable for VAT charges – ideal for companies who are partially or wholly VAT exempt.