AutoEase -

Contract Purchase

For companies with high-value cars who would like the option to purchase the vehicles, but don't want any depreciation risks. The customer acquires the vehicle by paying fixed monthly installments with the asset being shown on the company balance sheet, and can either retain ownership at the end of the contract or hand the vehicle back.

The benefits of Contract Purchase:

Low initial outlay

Eventual ownership

No residual risk

Interest charges claimable against tax

More capital to invest in your business

Flexible contract

Optional final payment

Rentals allowable against tax

Writing down allowance

Fixed monthly costs

No disposal problem

Optional maintenance package

Optional relief vehicle

Road fund license included for the full contract length

Please see attached chart which gives you an overview of product features. However please feel free to contact us to obtain further in depth information.

	Contract Hire	Contract Purchase	Hire/Lease Purchase	Finance Lease	PCH/PCP	Outright Purchase
Accurate monthly budgeting	X	X	X	X	X
Improved cash flow	X	X	X	X	X
Low Deposit	X	X		X	X
Fixed interest rates	X	X	X	X	X	n/a
Capital allowances available		X	X		n/a	X
Ownership of vehicle		Optional	X		Optional	X
VAT recoverable on rentals	X (1)			X (1)
VAT recovered by lease company to reduce rental	X			X
No depreciation risks	X	X			X
Note 1: Only 50% of the VAT relating to the finance element is recoverable if there is private use of the vehicle. If the vehicle is only used for business purposes 100% of the service element VAT is recoverable on contract hire only.

Accurate monthly budgeting

Improved cash flow

Low Deposit

Fixed interest rates

n/a

Capital allowances available

n/a

Ownership of vehicle

Optional

VAT recoverable on rentals

X (1)

VAT recovered by lease company to reduce rental

No depreciation risks

Note 1: Only 50% of the VAT relating to the finance element is recoverable if there is private use of the vehicle. If the vehicle is only used for business purposes 100% of the service element VAT is recoverable on contract hire only.

Running the Vehicle

	Contract Hire	Contract Purchase	Hire/Lease Purchase	Finance Lease	PCH/PCP	Outright Purchase
Vehicle disposal	X	X			X
Reduced administration	X	X	Optional	Optional	X	Optional
Road fund licence provided	X	X			X (2)
Breakdown cover	Optional	Optional	Optional	Optional	Optional	Optional
Relief vehicle	Optional	Optional			Optional
Fixed charge maintenance	Optional	Optional			Optional
Payment Protection	Optional	Optional	Optional	Optional	Optional
VAT recoverable on services	X	X			X (2)	X
Optional GAP insurance	X	X	X	X	X
Note 2: Road fund licence is provided for the first year only.

Vehicle disposal

Reduced administration

Optional

Road fund licence provided

X (2)

Breakdown cover