Outright Purchase

Outright purchase is the simplest way to purchase your vehicle. The cash price of the vehicle is paid upfront, which saves you paying any interest on monthly payments as there are none. From a taxation point of view, you will only be able to claim back the write down allowances, which is a maximum of £3000 per car. The advantages are:

• Ideal for those who want total ownership of their vehicles
• No Contracts or agreements
• The vehicle is yours to do with as you please from day one

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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.

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.