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WWCB2B.COM Contract Purchase
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| General |
| Contract Purchase offers the certainty of Contract Hire, but also gives you the ability to purchase the vehicle at the end of the agreement. In view of this purchase option, the VAT on the purchase price of the vehicle is not reclaimed, your repayments do not therefore attract VAT. Fixed costs and budgetability are features of this product, you know exactly what your
costs will be even if the car is operated away from base. |
| Registration |
| The vehicle is registered in the Contract Hire Companies name. You can therefore enjoy the benefit of 20,000 unit per year purchasing power even if you only operate one vehicle. |
| Ownership |
| The vehicle remains the property of the Contracting Company. You acquire title when all payments due have been made. |
| Insurance |
| You are responsible for Fully Comprehensive Insurance throughout the agreement. |
| Road Fund Licence |
| Road Fund Licence is provided for the Contract period, a new tax disc will be forwarded to you a few days before the old one expires. Should rates of duty change during the currency of the agreement you will be invoiced for any subsequent increase as it falls due. |
| V.A.T. |
| As this is a purchase agreement there is no VAT payable on vehicle repayment element. Where the maintenance option is selected VAT may be recovered by registered businesses on this element of the repayment. |
| Balance Sheet |
| The vehicle is shown as an asset of the business with a corresponding liability for future payments due. |
| Taxation |
| You acquire 25% per annum writing down allowances, limited to £3,000 in any one financial year, the interest element of each repayment is also allowable as a business expense. On disposal, a balancing item reconciles actual with claimed depreciation. |
| Maintenance |
| If a with Maintenance Contract is selected, all routine maintenance and repairs will be paid for, including tyres, batteries, exhausts etc… subject to normal wear and tear. You are liable to recharge in event of accidental damage/ abuse or neglect i.e. punctures. You benefit by having fully qualified maintenance controllers working for you, if maintenance is
selected, and from the bulk purchasing power. |
| Early Termination |
| You are able to terminate the agreement at any stage. |
| Disposal |
You have 3 options at the end of the agreement:
1. Simply return the vehicle, provided it is in good condition and within agreed mileage’s there is nothing more to pay.
2. You can purchase the vehicle at the stated figure.
3. You can part exchange the vehicle with us, releasing any possible equity back to yourself.
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