Contract Purchase
This funding method is similar to Hire Purchase but has a residual value incorporated into the profile to reduce regular monthly payments to a figure compatible with cash flow and budget. At the end of the contract the end user has three options:

• Replace the existing vehicle using the equity resulting from sale proceeds to form the deposit on a new transaction.
• Pay the residual sum with ownership of the vehicle then passing to the customer.
• Refinance the residual figure over a further agreed period.