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Business Contract Purchase

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Contract Purchase (CP) is a type of finance agreement for business customers looking to fund a new vehicle in a manageable way

The monthly payments are not subject to VAT, however if you do take out the optional service package then you will have to pay VAT on the service costs.

Advantages:

Low initial payment
Fixed monthly payments
You may be able to refinance the OFP
No depreciation concerns if you wish to walk away at the end
Maintenance and servicing can be included
Fixed OFP when you first take the contract out
Cost effective

Disadvantages:

You will have to make a decision at the end of the contract as to whether you wish to sell the vehicle, return it or keep it
You must have fully comprehensive vehicle insurance

More Information on Business Contract Purchase:

CP is ideal for any business that would like options at the end of its finance agreement. CP customers make an initial payment when they first take out the contract, then pay fixed monthly payments and finally have an Optional Final Payment (OFP) at the end at the end of the contract which is also referred to as the GFV (Guaranteed Future Value).

You can trade-in your vehicle at a dealership and take another vehicle from them. If the trade-in value is larger than the OFP you will be able to use the difference towards a deposit on a new Vehicle. Or, you can simply return the vehicle to the funder, as long as you have not exceeded the mileage and the vehicle is in an appropriate condition for its age there will be no charge. Finally, you can keep the vehicle either by paying the OFP in full or you will find that most companies offer the opportunity to re-finance the OFP.

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How does leasing work?

> LEARN MORE about how leasing works

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We are frequently asked

Have a question about vehicle leasing?

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WHY SHOULD I LEASE MY NEXT CAR?

Top 10 benefits of vehicle leasing >LEARN MORE



HOW DO I START LEASING?

Your simple 5-Step guide to getting started >LEARN MORE





WHAT HAPPENS AT THE END OF LEASE?

Check your options and what to expect >LEARN MORE



CAN I GET LEASE FOR MY START-UP?

Find out how you can drive brand new "company" vehicles >LEARN MORE




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Regal Garage (Bromsgrove) Ltd trading as Regal Autolease are a credit broker and not a lender, we are authorised and regulated by the Financial Conduct Authority. Registered No : 787993

Registered in England & Wales with company number : 00554796 | Data Protection No : ZA140638 | VAT No : 111 4829 00

Registered Office : Prydis, Senate Court, Southernhay Gardens, Exeter, England, EX1 1NT

Disclaimer:
All vehicle images and descriptions are for illustration and reference purposes only.
All vehicle leases are subject to credit approval and subject to change at any time.
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