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LVS Offers Excellent Business Contract Purchase Agreements

Lakeland Vehicle Solutions' Contract Purchase (CP) agreements are suitable for business customers who need to finance a new car or van with options to own the vehicle at the end of the contract

In this type of contract, the monthly payments don't attract VAT. If an optional service package is taken then the business will be charged VAT on the monthly service costs.

Advantages of LVS' Contract Purchase Plans:

  • Low initial payments suit the budget of many businesses with cash flow issues
  • regular fixed monthly payments help your financial planning
  • Refinance of the Optional Final Payment (OFP) is often possible making longer term use of a reliable vehicle realistic
  • Depreciation isn't your worry if you choose to end the arrangement at the expiry of the contract
  • Optional maintenance and servicing agreements can be included
  • You know what the  OFP will be when you initiate the contract
  • A cost effective and tax efficient procedure

Disadvantages of CP to Bear in Mind:

  • There's a decision to be made at end of the contract: sell, return or keep the vehicle
  • Again, fully comprehensive vehicle insurance is compulsory

Background Information on Contract Purchase for Business Vehicles:

The CP arrangement is intended for business owners who need options when the finance agreement ends. The CP customers make an initial payment when when they commence the contract agreement, this is followed by an agreed number of fixed monthly payments with an Optional Final Payment (OFP) the contract period ends. This is often referred to as the GFV (Guaranteed Future Value).

You have the options of:

  • trading in your vehicle with a dealer for a new vehicle. If the trade-in is worth more than the OFP, the difference can be put towards the deposit on the new vehicle
  • returning the vehicle to the funder, (If the vehicle mileage hasn't been exceeded and it's in appropriate condition for its age) with no further charges.
  • keeping the vehicle either by paying off in full or refinancing the OFP  (most CP finance companies offer OFP re-finance packages).
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