Car finance option

Jun 7 2010 Purchasing a car is a major capital expenditure and you need to carefully plan out the way you are going to arrange for the finance. More than the time that you spend on the model, features of the car you wish to purchase, it is necessary that you understand the types of car finance products available so that you can make best use of any one of them rather than leaving it to the dealer to suggest or work out one, as is done by most buyers of cars.
This will lead to a situation wherein you may have to shell out much more than what is necessary. If you are the owner of a small business, there exists car finance products that will help you get some benefits by virtue of the accounting advantage that you can avail of.
So let us look at one such car finance product in detail.
This is the Contract Purchase arrangement whereby you not only retain the right to purchase the vehicle at the end of the contract period but are also allowed to show the vehicle as a depreciating asset on your company books. Moreover, the VAT is also charged only on the service part of the payment.

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