Car Leasing Companies and Contract Hire Companies in the UK

Contract Purchase Contracts

Contract purchase contracts have been designed for companies that wish to run high value vehicles with a recommended retail price of over £25,000 such as Audi, BMW, Lexus, Mercedes-Benz to name a few.  This type of contract will benefit companies who would like the option to purchase the vehicle at the end of the contract purchase agreement, but may not want take the risk of the potential high depreciation risk associated with owning such high value vehicles.

The company acquires the vehicle by repaying with regular fixed monthly instalement payments, because this contract type is classed a “purchase” the vehicle is shown on the company’s balance sheet accounts as an asset. The benefit of a contract purchase contract is that company can choose to retain the ownership at the end of the contract agreement “or” decide to return the vehicle at no further risk to the contract lease company providing the vehicle is within the limits of the contract for mileage, condition etc.

Most contract purchase contracts offered include full service, maintenance and repairs, breakdown cover and road fund licence for the full contract period, please check this with your car leasing company or car leasing broker for full contract terms and conditions.