Contract Purchase
Contract Purchase provides title of the vehicle to the client. The vehicles are purchased via a series of monthly instalments over a defined period and mileage, with a final balloon payment. Leasedrive Velo takes the residual responsibility with the client having two options at the contract end;
- Purchase the vehicle by making the final balloon payment, or
- Return the vehicle and receive a guaranteed residual value payment, which can be used to off set against the final balloon payment.
Contract Purchase can be treated as on or off balance sheet subject to the client's accountants' interpretation of the contract.
Contract Purchase offers many of the same benefits as Contract Hire including no residual value risk, reduced administration and easy budgeting. Contract Purchase is a suitable option for those companies who are fully or partially VAT exempt. It is also appropriate for funding higher valued vehicles. Contract Purchase can be combined with a number of other optional services provided by Leasedrive Velo such as:
- Car policy management
- Client services
- Driver services
- Accident management
- Fuel card management
Key Features
- Client takes title of the vehicle
- On or off balance sheet (subject to accounting interpretation of the contract)
- VAT efficient solution for fully or partially exempt companies
- Fixed cost with ease of budgeting
- Reduced financial risk on disposal
- Reduced administration
- Fixed or "pay on use" maintenance
- Fixed or "pay on use" relief vehicle
System
Leasedrive Velo provides an online quote to order system - Drive:Manager™ enabling drivers/Fleet Managers to view vehicle specifications and prices online, configure and order a vehicle using their company's rule set to determine entitlement. The system also provides the driver with the facilities to locate service outlets and book their vehicle in for work online. Drive:Manager™ is password protected and, as it is internet-based, it is available 24 hours a day, 365 days a year.
The rentals and accounting procedures are managed through ALFA, a state of the art asset finance system, providing a robust finance and billing platform. Detailed interactive management reporting is available utilising Info:Manager™.
