Vehicle Contract Purchase

The main difference between vehicle contract purchase and contract hire is that with contract purchase you have the option of purchasing the vehicle at the end of your agreement. With that in mind, you have a guaranteed future value of the vehicle.

This protects you against a shortfall on your final payment if you’ve budgeted for taking ownership of the vehicle at the end of its term.

Contract purchase is also an ‘on balance sheet’ method of funding and is seen as an ideal option for non-VAT registered companies who are restricted in the amount of reclaimable VAT.

A flexible way of leasing your new car

Contract purchase is also seen as a more flexible leasing method. At the end of your contract, you have the following options:

1. You can return the vehicle to us
2. You can keep the vehicle by paying the agreed final payment set at the outset of the agreement

Better still, you don’t have to make this decision until towards the end of your contract.

How contract purchase works

Does this sound like the preferred method of leasing your new car? Here’s some more information on contract purchasing to help you decide.

How does a contract purchase payment plan work?

In a contract purchase agreement you make an initial payment and then regular fixed monthly payments for the duration of the contract. This continues until the end of the contract purchase agreement when you have the option to purchase the vehicle.

Do I own the vehicle?

The vehicle is yours to drive for the duration of the contract but vehicle ownership is retained by the finance company. That is until the end of the agreement, when you have the option of purchasing the vehicle.

How does mileage affect my contract purchase payments?

You will need to state your expected mileage at the beginning of your contract. The amount of miles you state will impact upon the amount you pay on a monthly basis and the calculated end value of the vehicle. An excess mileage charge will apply at the end of a contract if you go over your stated mileage, only if you decide not to purchase the vehicle.

Why choose Windmill Leasing to contract purchase my vehicle?

Windmill Leasing is a specialist provider of contract purchase and contract hire deals for businesses. That means you get a dedicated account manager, one point of contact for all of your needs, and expert advice on making sure that you enter the right agreement for the right car at the right price for you.

Need more information about contract purchase? We’re here to help.

If you would like more information about contract purchase, or to find out about the very best deals on fleet contract purchase agreements, talk to one of our account managers by calling 01527 571610 or request a call back and we’ll get back to you.

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