Commercial Hire Purchase
A Commercial Hire Purchase (CHP) is an agreement between a borrower and financier whereby the financier agrees to purchase the vehicle and hire it back to the borrower over the term of the agreement.
The customer has the use of the vehicle for the term of the contract but is not the owner of the vehicle.
At the end of the agreement once the all contract payments have been received by the finance company, the ownership then transfers to the borrower.
Commercial Hire Purchase can also be referred to as a Corporate Hire Purchase, Hire Purchase or Offer To Hire, and is often abbreviated as CHP or HP.
Benefits of Commercial Hire Purchase
Flexible loan terms from 1 to 7 years.
Residual Values or balloon options available.
Deposit by way of cash or trade-in can be used
Interest rates are fixed for the term of the contract
Fixed Monthly Repayments so costs are known in advance
Tax deductions where applicable can be made when vehicle is used for business purposes
No GST on monthly rental or residual payments however is charged on Fees and interest
GST credit can be claimed where applicable on the vehicle price, interest charges and Fees