Have you come to the end of your business or personal contract hire agreement and would like to buy your vehicle? Do you want to see if you can re-finance the purchase?
Technically, you are not allowed to buy the vehicle at the end of a contract hire agreement, this is mainly down to the financial way the agreement has been set up by the Leasing Company (legal owner) and has HMRC and VAT implications. However in some circumstances you can, each lender has a different policy, below is an example of how a few of the main providers work.
They will sell you the car or van via BCA Vehicle Remarketing, the vehicle will be supplied with a 12 Month warranty and this can be extended if you wish at an extra cost. If you want to re-finance the purchase, then leasing.cars have a number of lenders that will take the BCA invoice and pay them direct. You can re-finance using either Hire Purchase, or Personal Contract Purchase (PCP). This applies to both business and personal contract hire.
How does it works? You supply us with the current mileage, and we request a quote, this takes appx 48 hours to come back, once we have the quote, we will email it to you. You simply sign to go ahead and then we send you the invoice from BCA. At this point, if you do want to re-finance the car, lets us know and we can provide the quotes. On completion the vehicle registration document will be sent out to you and the vehicle is yours.
Hitachi Capital Vehicle Solutions
They will sell you the car or van via one of there appointed auction houses, the vehicle will be supplied with a 6 month warranty and this can be extended if you wish at extra cost. We have no re-financing options available currently for to help with this purchase. This applies to both business and personal contract hire.
How does it work? You supply us with the current mileage, and we request a quote, this takes appx 3 working days to come back, once we have the quote, we will email it to you. You simply sign to go ahead and then we send you the invoice from Hitachi. On completion the vehicle registration document will be sent out to you and the vehicle is yours.
They currently do not have a re-marketing facility that allows a car to be bought at the end of a Personal Contract Hire agreement, if you do wish to keep the car this can be done on an informal rolling basis. But at the end of the period, you will have to hand it back, so you may want to consider getting a new car that is under warranty.
If you have a Business Contract Hire agreement, then they will allow the car to be purchased as a trade sale, without warranty to a non-related third party. So, for example, a company Director could not buy the car, nor could any of their direct family, but an employee of the company, or a friend of the Director could.
How does it work? You simply email Lex Customer Services direct with your current mileage and request a purchase price, then when you receive it back, they will ask for details of who the purchaser will be, complete the info, make the payment and send it back. On completion the vehicle registration document will be sent out to the new keeper.
Volkswagen Financial Services (Volkswagen/Audi/Skoda/Seat)
The VWFS group policy is that you can request a purchase quote and they will sell you the car via the appointed auction house, we do not get involved in any of the process so we advise you to visit their website and request the purchase price yourself. You can do this here.
Mercedes Benz Financial Services
They do not allow any customer, business or personal to purchase a car or van at the end of a contract hire agreement and only allow customers to extend an agreement if they have ordered another Mercedes Benz vehicle.
The above is just a small sample of how some of the contract hire companies operate, what it does show is there is a variety of end of contract options and each one is slightly different. If your intention at the outset of the agreement is to buy the vehicle, then you might be better considering taking a purchase product, such as PCP (lower monthly payments with a balloon at the end) or a Hire Purchase agreement (ownership passes when the final payment has been made)
This is an example of how five finance companies work in different ways, if the finance company you have your agreement with is not listed above, then you should contact them direct to see what their policy is. we have listed all the major UK finance companies here.
If you have decided that you don’t want to buy the vehicle at the end and want a new vehicle, then why not have a look at our latest special offers?