The only choice for businesses that would like the option to purchase at the end of the contract, although there is no risk, because the other option is to simply return the vehicle. The customer acquires the vehicle by paying fixed monthly instalments, with the asset shown on their balance sheet. At the end of the contract, the vehicle can be handed back or retained by paying the balloon figure.

Contract Purchase
The Benefits

• Eventual ownership option
• Low initial outlay
• Flexible payment plans
• Optional final payment
• Leaves more capital available for your business
• Writing down allowance
• On balance sheet funding
• No depreciation risks
• No disposal problems
• Rentals allowable against tax