Business Contract Purchase

Business Contract Purchase is a highly flexible and affordable way of driving your new vehicle. If your business normally buys its cars with cash, a bank loan, or through a traditional Hire Purchase scheme, you may find Business Contract Purchase a far more cost-effective option.

You pay an initial deposit, from just 1 month's payment in advance, followed by a series of fixed monthly payments over an agreed period between 24 and 48 months. Your payments may be significantly lower than you first think, because unlike a bank loan or traditional Hire Purchase scheme your monthly payments are calculated on the difference between the initial purchase value of the vehicle and its projected residual & re-sale value at the end of the contract. This means that only a proportion of the vehicle's value is repaid, along with any finance charges, avoiding large initial outlays or residual & disposal worries. For this reason your company may find that you can choose from a wider range of cars than you had originally thought.

Business Contract Purchase can ease cash flow and free up valuable capital that can be used more effectively elsewhere within the business. Business Contract Purchase provides your business with a number of benefits. The car appears as an asset in the business or company accounts and a proportion of its value can be written down against taxable profits. Interest payments are also allowable against tax. Business Contract Purchase schemes can also offer a package to include routine servicing and maintenance costs for a small increase to the monthly rentals. All scheduled maintenance work will be carried out by the main dealer network & at a local dealer of your choice. Maintenance** packages include replacement tyres (excluding punctures), batteries, exhausts and all parts that are subject to fair wear and tear.

Business Contract Purchase gives you flexibility at the end of your agreed contract period. You have the option to own the vehicle but with the security of a guaranteed future value should the vehicle be worth less than the anticipated market value.

This means you have 4 options at the end of your Business Contract Purchase agreement:

Business Contract Purchase Option 1
Make the payment and keep the vehicle.

Business Contract Purchase Option 2
Extend the agreement by spreading the final payment over a further period.

Business Contract Purchase Option 3
Let Morgan Highfield & Land Ltd sell the vehicle for you on the open market releasing any available equity to form a deposit for your replacement vehicle.

Business Contract Purchase Option 4
Return the vehicle without making the final payment*. This releases you from further obligation except for excess mileage and vehicle damage charges should the estimated mileage agreement be exceeded or any damage be considered greater than fair wear and tear.

Key Benefits** of Business Contract Purchase

• Business Contract Purchase offers a low initial outlay from just 1 month's payment
• Business Contract Purchase offers flexible terms from 24 to 48 months
• Business Contract Purchase offers Road Fund Licence for an initial 12 months
• Business Contract Purchase offers a choice of rental period
• Business Contract Purchase offers no depreciation risks
• Business Contract Purchase offers a proportion of the rentals allowable against tax
• Business Contract Purchase allows your vehicle to displayed on your balance sheet
• Business Contract Purchase allows a proportion of interest charges reclaimable
• Business Contract Purchase allows a writing down allowance
• Business Contract Purchase offers optional monthly maintenance packages**
• Business Contract Purchase offers the ability to forward plan
• Business Contract Purchase offers a simple 'Opportunity to Buy' at contract maturity**
• Business Contract Purchase makes more capital available to you
• Business Contract Purchase offers complete peace of mind
• Business Contract Purchase removes time consuming disposal issues*

*Excess mileage and vehicle damage charges other than fair wear and tear may be payable.
** Subject to terms and conditions of the Contract Purchase agreement.