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Contract Purchase for Commercial Vehicles

Contract Purchase is a finance agreement to purchase a pickup vehicle via a series of monthly instalments. Ownership of the pickup truck passes to you at the end of the contract following a final payment.

A guaranteed residual value, which enables lower monthly payments, is set by the finance company at the start of the contract, which gives you three options by the end:

  1. Part exchange and use any equity for deposit for your next vehicle.
  2. Hand the vehicle back to the leasing company (Subject to mileage and condition).
  3. Keep the vehicle by paying the optional final payment.

Structurally similar to Contract Hire, Contract Purchase enables you to make fixed monthly payments. However, with Contract Purchase you have the option of retaining the vehicle at the end of the contract.


  • Fixed monthly payments
  • Choice of contract period from 24 to 60 months
  • Purchase cost may be Corporation Tax deductible through Capital Allowances
  • Interest elements of monthly payments may be Corporation Tax deductable
  • Can benefit from higher residential values
  • The option to retain the vehicle at the end of the contract - without any depreciation risks
  • 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


  • Outstanding instalments appear as a liability on balance sheet
  • Vehicle appears on balance sheet
  • Not VAT-efficient


This would suit customers who:

Wants ownership of the vehicle without a large initial outlay.

Wants multiple options at the end of the contract.

Wants fixed cost, stress free motoring.

Pickup Truck Lease Purchase or Contract Purchase FAQs

Please just click on a question to reveal the answer.

Lease Purchase

Why would I buy a pickup truck using Lease Purchase rather than Contract Hire or Finance Lease?

Lease purchase has many benefits but, most importantly, from 1 January 2013 the AIA (Annual Investment Allowance) increased from £25k to £250k. This now enables most businesses, including sole traders, partnerships and limited companies, to offset up to £250k of capital expenditure against tax. This, in simple terms, means that a business with profits before tax of up to £250k could reduce its income/corporation tax bill to zero by purchasing new equipment to the same value... and that includes the cost of a new van!

Listed below are some of the other benefits you receive with van Lease Purchase:

  • Ownership at the end of the contract.
  • Final/residual payment (thereby reducing monthly payments).
  • Payments are not subject to VAT.
  • The Capital cost of the van can be written-down utilising the standard writing-down allowances, if not using the Annual Investment Allowance (AIA).
  • Low initial deposit.
  • Fixed monthly payments.
  • Interest reclaimable against Tax.
What are the advantages of Lease Purchase?

The benefit of a 'Lease Purchase' is that a customer could enjoy the payment of a lease (ie, with advance and balloon payments) while still having ownership (title) of the vehicle at the end of the agreement. As this type of agreement is a purchase plan, the payments do not attract VAT.

How do the costs compare with Lease Purchase to actually buying a pickup truck outright?

Our huge buying power in the commercial vehicle market allows us to obtain the best discounts available. As a customer taking a vehicle from us on lease, you will benefit from the full dealer discount, along with a large fleet discount that we negotiate direct from the manufacturer. Your monthly payments will be significantly more competitive than purchasing outright, where you will more than likely receive the dealer discount alone.

With Lease Purchasing when will I have the option to keep my pickup truck?

At the end of your agreement, once you have made the final monthly instalment (or balloon payment) you can take full ownership of the vehicle. Your full options at the end of your contract are:

  • Pay your final monthly instalment and keep your vehicle.
  • Part-exchange your vehicle and use any remaining equity towards the deposit on your new vehicle.
  • Re-finance your final payment through an alternative Funder (finance company).
Do I have to be VAT registered to Lease Purchase a pickup truck?

No, you don't have to be VAT registered but on all purchase agreements, the finance company will ask for the full VAT payment upfront as deposit. If you are not comfortable with this size deposit then a Finance Lease might be another option.

Can I claim the VAT back on a pickup truck through Lease Purchasing?

Yes, if you are VAT registered you are able to reclaim all of the VAT back in the first quarter. Therefore, if you have put this down as a deposit, you will be able to claim it back pretty much straight away.

Are there any mileage limits with a Lease Purchase agreement?

There are no mileage restrictions on a Lease Purchase agreement, although you must always be careful if you are doing high mileage, that you check your final payment is realistic to what your vehicle might be worth. For instance, you would not want to be left with a final payment based on 10k miles per annum if you were actually doing 50k per annum because you might be left in a negative equity situation, whereby your vehicle is worth less than you own on the finance when you come to change the vehicle.

Do the CO2 emissions on my pickup truck affect my Lease Purchase terms?

No, because the vehicle is classed as a commercial vehicle, it falls into this classification for both road tax and company/personal tax.

Can I change my pickup truck mileage during the Lease Purchase period?

There are no mileage restrictions on Lease Purchase, so there would be no need to change this. However, always make sure your final payment is realistic, based on the annual mileage you will be doing.

Can I extend the pickup truck Lease Purchase agreement?

There is not an option to extend (re-finance) your agreement when it finishes. However, because this is a purchase scheme, the finance company you are funding your vehicle through would always be happy to look at arranging a new finance agreement for you where perhaps you Hire Purchase the remaining balance of your agreement.

What age to I need to be to take out a Lease Purchase agreement on a new pickup truck?

You are required to be a minimum of 18 years old, and the finance company would also need to see a copy of your driving licence and some form of utility bill at your current home address.

What deposit do I need to put down to secure the pickup truck?

On all purchase agreements, the finance company will require the VAT on the purchase price of the van as a minimum deposit (also mentioned in Question 4). No finance company will ever fund the VAT element of a vehicle on a purchase agreement and, in some cases they might ask for a small deposit (10%) in addition to the VAT. Please keep in mind though, that if you VAT registered you will be able to claim all of the VAT deposit back at the end of your next quarter.


Do I have to have a credit check if I Lease Purchase a pickup truck?

Yes, we will require some basic financial information from you to proceed through a credit check.

Does approval take a long time?

We use a variety of Funders but, in general, we should have a credit decision for you within 24hrs. Sometimes the finance companies can request further information (such as company management accounts) which may delay the credit decision but, on the other hand, we can sometimes have a credit decision back within an hour.

If I am turned down will this reflect on future credit ratings?

Whenever you run a credit check, it will always leave a small footprint on your credit profile; however, this shouldn't have a detrimental effect on any future applications. Your credit profile will only be affected if your proposal is sent round repeatedly to various finance companies, which could result in a large number of declined applications appearing on your file.

My credit rating is poor, what are the options available to me?

We have a large number of finance companies and they all have different credit underwriting criteria. What one company might see as bad history, another might find acceptable, and in some cases, might request more information to support your application (such as last 3mths bank statements etc). In all cases, we will always do everything in our power to secure you credit on a vehicle.

Are their particular finance companies that deal solely with bad credit ratings?

Not really, as mentioned before some finance companies will have slightly more relaxed views on credit scores than others will, although we currently don't have one particular company that we work with that purely looks at sub-prime applications.

What specifically is required to set up a Lease Purchase agreement?

It's very simple; we start by taking the information below, which allows us to process your application:

  • Full name as it appears on your driving licence.
  • Company name (if any) or company registration number (if a limited company).
  • Directors details.
  • Bank sort code and account number.
  • Number of years trading.


Do I own the pickup truck on Lease Purchase or Contract Purchase?

When you fund a vehicle through Lease Purchase (or Contract Purchase), you own the van at the end of the contract and, in most cases, during the agreement the vehicle will be registered in your name, c/o the relevant finance company, who is funding the vehicle.

Keep in mind that with all finance agreements the finance company actually legally owns your vehicle until such time that you have paid off the finance and they no longer have an interest in your vehicle.

When you buy a commercial vehicle using Lease or Contract Purchase, it is classed as an asset to your business and is shown on your balance sheet.

What will happen to the pickup truck at the end of the Lease Purchase?

Once you have made your final instalment to the finance company, it is then up to you what you do next, you could either keep running the vehicle or part-exchange it for a new one. We will be in contact with you throughout your agreement and at the end of your contract, one of our trained advisors will call you to run you through your full options available.

Will I be responsible for parking tickets and speeding fines etc?

Yes, because the vehicle is owned and registered in your name, then all parking and vehicle related fines would be your full responsibility.

Who pays for new tyres, MOT and servicing?

You do not have an option to include a maintenance package with Lease Purchase, so all maintenance related issues with your vehicle would be your responsibility. All new vehicles now come with a minimum of 3 years manufacturers' warranty, so this should cover you for any major mechanical fault that might occur. We also recommend that you keep your vehicle serviced as recommended by the manufacturer so that you benefit from the maximum value when you come to part-exchange your vehicle.

What happens if the pickup truck is in an accident during the Lease Purchase period?

Your first port of call should be your insurance company, to notify them of the accident. Unless the vehicle is a write-off then there is no need to notify the finance company.

What happens if dents and scratches appear on the vehicle when I return it?

Your vehicle is not returned at the end of a Lease Purchase, so any damage will only devalue the vehicle when you come to sell or part-exchange it.

Can the pickup truck be customised, ie, with tinted windows, or lower it?

Yes, you own the vehicle so you can make any modifications you wish to the vehicle, but just always make sure the vehicle is road legal.

Can I take my pickup truck abroad during the Lease Purchase term?

Yes, you will have the original registration document in your name, so taking the vehicle abroad is not a problem.

Am I able to race the vehicle?

In theory, yes, although we wouldn't advise it. If you were to write-off your vehicle you always run the risk of getting into problems if you're insurance company don't pay you as much as you owe on the finance and this then leaves you in negative equity.

Pickup Truck Insurance

Is my insurance going to go up because I have chosen Lease Purchase?

There is no reason why your insurance premium should go up because you have funded your vehicle on Lease Purchase.

Is insurance included in the Lease Purchase agreement?

No, you are responsible for ensuring the vehicle is insured throughout the whole term of your agreement. On a new vehicle, you will find that most insurance companies will insist on you having fully comprehensive insurance and we recommend this too.

Can I insure the pickup truck under my company insurance?

Yes, this is not a problem, but keep in mind that the insurance must be in same name as the contract, whether this is your name, trading name or your limited company name.

Is fully comprehensive insurance compulsory when I take out a Lease Purchase agreement?

No because you own the vehicle, so it is down to you about what level of cover you feel is sufficient. However, being a new vehicle we would always recommend fully comprehensive.

Will I be able to insure other family members to drive the pickup truck?

Yes, there is nothing that stops you adding family or friends to your insurance, just as you would normally on any other vehicle.

Can I include insurance in the pickup truck Lease Purchase package?

No you can't include insurance in your package, but we are partnered with one of the country's largest commercial insurance companies who will be happy to give you a very competitive quote. Click here for more information:

If I am in an accident do you provide a courtesy vehicle?

Normally your insurance company will arrange a replacement vehicle for you if you are involved in an accident (especially if it is not your fault). If not, then your breakdown cover will normally cover you for a vehicle for the first 24/48hrs, after which the body shop, which is repairing your vehicle, should be able to loan you a vehicle.

My New Pickup Truck

Is there a delivery charge?

No, we offer a free of charge delivery service anywhere in the UK.

What are the colour options?

You will be able to choose from all the manufacturers' colours, just as you would via any main dealer in the UK. Keep in mind we tend to order stock in the most popular colours, so unless it's a rare colour or specification you are considering, we should be able to deliver your vehicle very quickly.

Is Road Tax included with Lease Purchase if not how much does it cost?

The first year's Road Fund Licence is included in your payments but you will be responsible for taxing the vehicle for the remainder of your contract.

Can I transfer my private number plates on a Lease Purchase pickup truck?

Yes, because you will have the registration document in your name, you can put a private plate on your vehicle at any time. Please note that it's always worth informing your finance company if you do this so that they have a record of the new number plate.

Are there any admin charges involved?

We do not charge any administration fees, although most of the finance companies we use will issue some form of admin/document fee on your first and/or your last payment. These are often called acceptance fees or option to purchase fees.

What are the hidden costs?

We do not have any hidden costs. Any documentation/admin fees, which might apply, will always be shown clearly on the finance documentation you sign and return.

Is my pickup truck coming directly from the manufacturer or a local dealer?

Your vehicle is supplied directly from a UK main dealer who will deliver the vehicle to your door. We have long-term relationships with all of our supplying dealers and they are targeted to match us and provide excellent customer service

What is the time scale for delivery?

Most of the vehicles we advertise are stock/batch vehicles and, from time of order, delivery is approximately 2-3 weeks. To ensure the quickest delivery time possible it does also rely on you sending us everything we require straight away (ie, copy of driving licence/signed order form).

Do I need to be aware of anything when buying a pickup truck online?

As an online business, we are aware that customers might be a little apprehensive about buying their new vehicle over the internet.

Therefore, we have designed our website to give our customers as many assurances as possible that we are a professional, experienced and reliable organisation. Our head office is based in Tring, Hertfordshire, where you are more than welcome to collect your vehicle from.

Furthermore, we ask every single one of our customers to review our service, and you can read all these responses (good and bad) via this link . On top of that, we also pride ourselves on our 7-price point guarantee, which gives all of our customer peace of mind that they are getting the best possible deal in the market. Further information on this can be found on the following link

Part Exchange

Do you offer part exchange on any vehicle?

Yes we do. Unlike many of our competitors who will advise you to sell your vehicle privately, we actually welcome the chance to take your current vehicle in part-exchange. We are fortunate to have a used car/van business based at our head office, where we retail and trade vehicles throughout the year. Therefore, we are able to pass on the benefit of this facility to you, by being able to offer you very competitive part-exchange valuations.

Do I need to bring my vehicle in to you if I want to part-exchange?

Not if you don't want to, as we are able to pick up your part-exchange when we deliver your new vehicle. Please keep in mind that we would require a full and accurate description of your part-exchange vehicle, and we would base our valuation on this description. If the vehicle was to arrive with damage or mechanical issues then we would discuss the valuation adjustment with you immediately.

Will you still take a vehicle which has dents and scratches?

Yes, as a business, we are constantly buying and selling vehicles, which require bodywork of some description, so dents and scratches, are not a problem. Just as long as they are mentioned when you describe the vehicle condition to us over the telephone.