When it makes financial sense to retain ownership of your vehicles, but you still don't want to expose your business to risk, Contract Purchase may be the answer. It can be the best choice for your fleet if you are unable to fully recover VAT, or perhaps where you have higher value, high emission cars in your fleet.
With Contract Purchase, you enjoy many of the administrative benefits of Contract Hire. You'll have the same level of cost stability as you do with Contract Hire, but the asset will appear on your balance sheet, and you are entitled to claim capital allowances against depreciation.
At the end of the agreement, you have the right to purchase the vehicle by making a final balloon payment, but you could also simply return the vehicle.