Car Credit: Contract Purchase is an option favoured by those who wish to purchase a vehicle but without having to worry about the vehicle’s depreciations. An agreement is setup whereby a fixed monthly repayment is set for a certain period of time. This cost is based upon the anticipated mileage of the vehicle. Vehicle maintenance can sometimes be included as an additional option.
Once the contract period is finished, there are two options available to the customers. The first option being that a final payment is made to finalise the purchase of the vehicle. The second option being that the vehicle is returned to the car credit company.
In terms of businesses, the vehicle appears as a balance sheet asset for the duration of the contract. This means that capital allowances can be claimed at the rate of 25% per year on the reducing asset value of the vehicle (up to a maximum of £3,000 per year). However, VAT is not recoverable on the monthly payments. For vehicles over £12,000 a balancing charge or allowance is made on disposal of the vehicle. This therefore generates tax efficiencies by allowing for the full depreciation amount.
A typical contract purchase will consist of a 12-60 month contract, which will include mileage restrictions, road tax and breakdown cover and also the option to purchase the vehicle at the end of the contract period. No VAT can be reclaimed in the rental of the vehicle but can be claimed as part of any vehicle services that take are undertaken.
Car Credit Assured make buying the car you want easy
1. Call or Apply online – Call our customer service team on 0845 123 9916 or apply online
2. Get a decision – We will search our panel of lenders to ensure the best result for your credit status and call you with a decision promptly.
3. Your Appointment – To ensure you receive excellent service we will call you and arrange an appointment at one of our dealerships.
4. Pick up your car – Once we have finalised all the car credit details you can drive away and enjoy your new car.
Car Credit Assured make buying the car you want easy
1. Call or Apply online – Call our customer service team on 0845 123 9916 or apply online
2. Get a decision – We will search our panel of lenders to ensure the best result for your credit status and call you with a decision promptly.
3. Your Appointment – To ensure you receive excellent service we will call you and arrange an appointment at one of our dealerships.
4. Pick up your car – Once we have finalised all the car credit details you can drive away and enjoy your new car.
Car Credit Assured is authorised and regulated by the financial services authority. Applicants must be over 18 years of age. Credit is subject to status and income. Written details are available on request. Credit only available on cars supplied by Bristol Street Group Ltd and its subsidiary companies. Typical finance example; cash price £5,499, deposit £499, amount of credit £5,000, total charge for credit £2,799, total amount payable £8,298, payable by 59 monthly payments of £125, followed by one monthly payment (inc application fee) of £424.