A Commercial Hire Purchase (CHP) arrangement is an agreement to purchase Vehicles or equipment, predominately for business use. You will automatically own the goods when you pay the final payment of the monies owed (residual).
This funding agreement is generally suitable for organisations using the 'accruals' method of accounting for the Goods and Services Tax (GST) or for individuals who use their motor vehicle for business related purposes. Under the 'accruals' method, the GST component of the acquisition price of the motor vehicle (or other asset) can be claimed back on the entity's next Business Activity Statement, rather than claiming the GST over the term of the finance contract.
- It is flexible as you can either finance the total purchase price or use a deposit or trade –in to reduce the loan repayments.
- You can claim a tax deduction for the depreciation on the motor vehicle as well as the interest component of the loan repayments where the motor vehicle is used for business related purposes.
- GST is not payable on the Commercial Hire Purchase repayments.
- The repayments are fixed over the term of the Commercial Hire Purchase.
- The term of the loan ranges from 12 months to 60 months.
- You can structure the repayments with or without a balloon payment at the end of the term of the Hire Purchase to tailor your repayments to suit your cash flow.
To apply for or enquire about a Commercial Hire Purchase please fill out our online finance enquiry form and one of our customer service representatives will be in contact with you or call 1300 3 FLEET (1300 335 338) today!
< Back
Consumer Car Loan
Novated Lease
Finance Lease
Chattel Mortgage
Operating Lease
All applications for credit are subject to normal credit approval criteria.
As we are not tax advisors always seek independent advice from your Accountant.
