Operational and funding efficiency to purchase your fleet

GE Capital’s Contract Purchase solution combines the service and operational benefits of contract hire with the taxation treatment of outright purchase.

A Contract Purchase is a conditional sale agreement whereby you ultimately acquire title to a vehicle other benefits include:

• Efficient for vehicles with 100% first year allowances
• Efficient for VAT-restricted businesses
• No large cash outlays are required
• Full capital allowances can be claimed
• Fixed repayments mean accurate financial planning
• Residual risk on resale of the vehicle can be transferred across to GE Capital

How Contract Purchases work

In calculating the repayments, the vehicle’s residual value (future market value) is set as the final, “balloon” sum at the end of the contract. You then purchase the vehicle via a series of payments calculated according to the depreciated value. These monthly payments comprise the capital interest and service elements, and are based upon the VAT-inclusive cost of the vehicle. As such, there is no additional VAT applied to the payments.

For further information please email [email protected].

For business use only.