Structurally similar to Contract Hire, Business Contract Purchase (BCP) enables customers to make fixed monthly payments. However, with Business Contract Purchase the customer has the option of retaining the vehicle at the end of the contract.
Improved cash flow
No depreciation risks
Accurate monthly budgeting
Fixed interest rate
The interest and service elements of each payment is fully allowable against taxable profit – Writing down allowance of 18% (8% if Co2 is above 130g/km)
Is treated by the Inland Revenue as a purchase
Road Fund Licence is provided for the full term of the contract.
The convenience of a full maintenance service, at a fixed monthly cost, is optional.
The customer must decide at the end of the contract whether they wish to sell the vehicle, return it or keep it.
The customer must have a fully comprehensive insurance.
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