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18th Dec 2018 - View our latest special offers, simply choose from our business or personal contract hire deals. Call 033 011 33399 or email your exact requirements for a free no obligation quote.
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Business Contract Purchase

Contract Purchase (CP) is a type of finance agreement for business customers looking to fund a new vehicle in a manageable way

The monthly payments are not subject to VAT, however if you do take out the optional service package then you will have to pay VAT on the service costs.

Advantages:

  • Low initial payment
  • Fixed monthly payments
  • You may be able to refinance the OFP
  • No depreciation concerns if you wish to walk away at the end
  • Maintenance and servicing can be included
  • Fixed OFP when you first take the contract out
  • Cost effective

Disadvantages:

  • You will have to make a decision at the end of the contract as to whether you wish to sell the vehicle, return it or keep it
  • You must have fully comprehensive vehicle insurance

More Information on Business Contract Purchase:

CP is ideal for any business that would like options at the end of its finance agreement. CP customers make an initial payment when they first take out the contract, then pay fixed monthly payments and finally have an Optional Final Payment (OFP) at the end at the end of the contract which is also referred to as the GFV (Guaranteed Future Value).

You can trade-in your vehicle at a dealership and take another vehicle from them. If the trade-in value is larger than the OFP you will be able to use the difference towards a deposit on a new Vehicle. Or, you can simply return the vehicle to the funder, as long as you have not exceeded the mileage and the vehicle is in an appropriate condition for its age there will be no charge. Finally, you can keep the vehicle either by paying the OFP in full or you will find that most companies offer the opportunity to re-finance the OFP.

Simple Leasing Limited is an Appointed Representative of Automotive Compliance Ltd, which is authorised and regulated by the Financial Conduct Authority (FCA No 497010). Automotive Compliance Ltd’s permissions as a Principal Firm allows Simple Leasing Limited to act as a credit broker, not as a lender, for the introduction to a limited number of finance providers only and to act as an agent on behalf of the insurer for insurance distribution activities only.

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