Contract purchase or business contract purchase is a fantastic option for people who want to purchase a vehicle but want to pay for it in a much more manageable way. The payments are made via monthly installments which are not subject to VAT. There are also optional service packages (i.e the maintenance) on which VAT must be paid, however that is optional.Advantages of contract purchase
Contract purchase gives you much more freedom once the finance agreement comes to an end. Van leasing allows people to drive vans which they may not have been able to afford previously, due to the cost effectiveness of the plan - with its low monthly payments and initial deposit. When the contract comes to an end, you have a few options. You can either make the balloon payment so that the van is yours, refinance the agreement so that you can continue with that van, or hand the vehicle back and walk away with no more obligation whatsoever.
When the contract is agreed, customers make their initial payment and then pay the fixed monthly payments which are put into place. Then, at the end of the contract you have the option of paying a balloon amount (which is sometimes even referred to as â€œgenerated future valeâ€ or GFV for short).
There are four basic options for when your contract ends, they are
Contract purchase or personal contract purchase is a fantastic option for people who wish to purchase vehicle or van but pay for it in a much more manageable manner. Get in contact with us here at LeaseVan today to find about our van contract purchase options, you can call us immediately on 0344 745 1818 to speak to one of our friendly members of staff.