Commercial Hire Purchase

Commercial Hire Purchase

Do you need a car for business?

Want flexible payments so that you can own the vehicle?

Asset Purchase (sometimes called Hire Purchase or Term Purchase) might be for you.

Commercial Hire Purchase

A Commercial Hire Purchase (CHP) is a commercial finance product where the customer hires the vehicle from the financier for a fixed monthly repayment over a set period of time Under a Commercial Hire Purchase (CHP) arrangement the financier agrees to purchase the car on behalf of the customer, and then hire it back to them over a set period of time. The customer has the use of the vehicle for the term of the contract but is not the owner of the vehicle. The transfer of title for the vehicle is completed when the finance provider receives the last rental. Under a Commercial Hire Purchase arrangement the Hirer may be entitled to claim depreciation on business use equipment at the allowable rate set by the Commissioner of Taxation together with any terms charges paid. This is on the basis that the goods earn assessable income. However you should seek independent taxation advice, as this may not be applicable to your situation. Some of the benefits include;

• Contract terms can range from 12 to 60 months (one to five years)

• A Residual value may be placed on the contract

• Costs are known in advance

• Deposit (either cash or trade-in) may be used

• Your interest rate will be fixed