Contract Purchase is an agreement to purchase a vehicle via a series of monthly instalments. Ownership passes to you at the end of the contract following a final payment.
We recognise that many of our customers see their van as their biggest asset after their client base, so ownership can be really important. Contract Purchase is a great product and can be the best way to achieve this without spending your hard-earned cash.
A Guaranteed Residual Value (GRV), which enables lower monthly payments, is set by the finance company at the start of the contract, which gives you three options at the end:
- Hand the vehicle back to the leasing company (subject to mileage and condition).
- Keep the vehicle by paying the optional final payment and take ownership.
- Re-finance the final payment amount if applicable (subject to credit and funders discretion). At the end of these payments, you own the vehicle.
Structurally similar to Contract Hire, Contract Purchase enables you to make fixed monthly payments. However, with Contract Purchase you have the option of retaining the vehicle at the end of your contract.