With a Contract Purchase agreement, the vehicle appears on the balance sheet, which allows you to claim capital allowances. The finance element of the payments is not subject to VAT, which may be beneficial if you are unable to recover VAT.
At the end of the contract agreement you can pay a pre-determined balloon payment and the option to purchase fee to complete your purchase of the vehicle or, choose to return the vehicle to Alphabet.
We are a member of the BVRLA, the trade body for the vehicle rental and leasing industry and means we are quality assured, operating under sector specific codes of conduct. This gives you comfort that if you choose to return the contract purchase vehicle, we will assess the condition in accordance with the BVRLA Fair Wear and Tear Guidelines, a copy of which is available here.
What are the benefits of Contract Purchase agreement for you?
- Predictable costs
- Potential tax and VAT benefits of ownership
- No depreciation risk for you at the agreement end
- Option to purchase.