Contract Purchase Explained
There are so many options to choose from when financing your vehicle. And one of the more flexible options of the lot is contract purchase. Therefore we have created the above video ‘Contract Purchase Explained’ to answer all your unanswered questions.
Contract purchase is primarily for businesses. There is a contract purchase for private individuals, aptly named Personal Contract Purchase.
A contract purchase, or CP, is essentially where a company pays monthly payments for a set period of time. At the end of the agreement, you have three options;
Part exchange the car and use the equity towards a deposit for your next car
Buy the car for a pre-agreed amount
Hand the car back (subject to mileage and condition restrictions)
So, there’s quite a bit of flexibility with the contract.