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Commercial Car Hire Purchase – Lower Rates

When purchasing new vehicles, Hire Purchase is one of several financing products that can be considered. Hire Purchase is also referred to as Commercial Hire Purchase, HP and CHP and can present an affordable and workable solution for many operators. The format is straightforward, our rates are fixed and highly competitive and HP can suit financing many types of vehicles used in a commercial operation.

Business Finance Commercial Car Hire Purchase – Lower Rates
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Find the Best Financing Option
Compare Commercial Car Hire Purchase Interest Rates with Other Options

Interest rates on motor vehicle lending vary with lenders and also with the credit products. This is consistent across the market. HP typically attracts the same rate as Chattel Mortgage, which is lower than Leasing. Compare our current rates across our portfolio to compare the options and call us for a quote for your specific vehicle.

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Disclaimer: The comparison rate displayed is calculated for a loan of $30,000 over 5 years. The results from this calculator should be used as an indication only. Quoted repayments are based on advertised rates and do not include lender fees and charges. Results do not represent either quotes or pre-qualifications for a loan. The specific details of your loan will be provided to you in your loan contract. It is advised that you speak with us so that we can provide you with advice that is tailored to your situation.

30 September

Today's best rate

Finance Equipment From

4.99 % Fixed

* The interest rate is calculated on a secured loan for commercial use, effective 30/09/2023 and subject to change. Warning: the interest rate is only true for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts may result in a different interest rate.

30 September

Today's best rate

Finance Equipment From

4.99 % Fixed

* The interest rate is calculated on a secured loan for commercial use, effective 30/09/2023 and subject to change. Warning: the interest rate is only true for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts may result in a different interest rate.

Estimate Repayments with Ease
How to Get Repayment Estimates Using a Hire Purchase Calculator for Cars

To assist with buying and funding decisions, use our calculator to work up HP repayment estimates on different car models to compare. Vary the values entered for different priced vehicles and note the repayment estimate. Call us for a confirmed quote.

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A Flexible Financing Option for Businesses
What is Commercial Car Hire Purchase?

CHP can be misunderstood and mistaken for a short-term rental or hiring arrangement. It is a credit facility with the end result being the buyer have ownership of the vehicle. The technical explanation is that the lender acquires the vehicle and the borrower repays the loan in instalments while having full use and responsibility for the running and maintenance costs over the term.

At the conclusion of the funding term, when the final instalment plus the balloon is finalised, ownership of the vehicle is transferred to the buyer. HP is compatible with both the accruals method of accounting and cash accounting, make it suitable for many commercial structures.

  • Fixed interest rates
  • Fixed terms – 12mths to 84mths
  • Fixed monthly instalments
  • Balloon optional
  • Compatible with accruals and cash accounting
  • New and used commercial vehicles – cars, utes, SUVs, vans etc
  • No deposit options
  • ABN required
  • GST registration not essential
Compare Commercial Car Hire Purchase

Maximise Tax Deductions with Commercial Car Hire Purchase Finance
Commercial Car Hire Purchase Tax Deductions

Tax deductions and treatment of GST for CHP is similar in approach to Chattel Mortgage.

  • GST charged on the vehicle purchase can be claimed in full on the ensuing BAS return. This applies to companies using both accruals and cash accounting.
  • No GST is charged on monthly instalments.
  • Monthly repayments not fully deductible, only the interest component is deductible.
  • Tax deduction realised through depreciation of the vehicle as an asset.
  • Depreciation schedules according to ATO rulings.
A Variety of Business Auto Loan Options

Choosing the Right Finance Option for Commercial Cars
Comparing Solutions: Hire Purchase vs Chattel Mortgage for Cars

Deciding which is the most suitable form of credit for purchase new vehicles may involve a comparison of the features and benefits of each option. Many of the aspects of funding products relate to accounting measures. We advise commercial owners to discuss the selection with their accountant.

  • CHP has a number of features and benefits in line with Chattel Mortgage for motor vehicles but several differences.
  • With HP, the lender retains ownership of the vehicle, while with Chattel Mortgage, ownership goes immediately to the buyer. The vehicle then appears on the buyer’s balance sheet.
  • With both options, the full amount of GST can be claimed immediately after purchase.
  • The major tax deduction is also the same – realised through depreciation of the vehicles.
  • Both attract the same or very similar interest rates which is typically the lowest of car funding options.
Comparing Solutions for Commercial Cars

Choosing the Ideal Financing Solution for Cars
Comparing Solutions: Hire Purchase vs Leasing for Cars

CHP has similarities and differences to Vehicle Leasing.

  • With both, the ownership of the vehicle is retained by the lender over the term of funding.
  • CHP typically attracts a s lower interest rate than Leasing.
  • Treatment of GST differs.
  • Tax deductions differ – Leasing Payments are deductible, HP payments are not.
  • Vehicles are depreciated under HP for a tax deduction and not depreciated under Lease.
  • HP has a Balloon option which can be negotiated, Leasing has a residual in line with ATO rulings.

Benefit from Commercial Car Hire Purchase Finance
Types of Businesses Suited to Commercial Car Hire Purchase

All commercial businesses can utilise HP to fund the acquisition of new vehicles.

  • Sole traders, self-employed, owner-drivers, ABN holders
  • SMEs, partnerships, family enterprises
  • Companies, corporations
  • Family trusts, unit trusts
Fast Approvals for Commercial Business Car Loans
Obtain Tax-Efficient Solutions for Commercial Financing Needs

Experience Fast Approvals for Your Commercial Car Finance
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All commercial ventures can use our broker services to source and arrange CHP for their vehicle acquisitions. We are accredited with over 80 banks and lenders to source the lowest rates currently available.

Apply online or with a quick call to one of our consultants. Approvals in as little as 24 hours.

  • Access to 80+ banks and lenders
  • Lower rates
  • No deposit CHP
  • Single vehicle and fleets
  • Pre-purchase approval
  • Dealer, private sales, auction
  • New and used vehicles
  • Utes, vans, passenger cars, SUVs, wagons, light commercials
  • Options for businesses without financials

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FAQs
Commercial Car Hire Purchase

HP is a credit product for businesses to purchase motor vehicles. The lender retains ownership until all repayments and balloon are finalised and then signs title over to the buyer. Buyer has full use of the vehicle through the term and is responsible for all expenses for the vehicles.

No. Only the interest portion of the repayments of HP agreements is considered a tax deductible expense. Businesses realise a tax deduction with HP through depreciation of the vehicle.

No. An ABN is essential to be eligible for business funding but GST registration is note. Some lenders may view GST registration favourably. Operators with an annual turnover of more than $75,000 must register for GST under Australian business regulations.

GST is applied to the purchase price of motor vehicles. When purchasing vehicles with CHP, that full amount may be claimed on the BAS return coinciding with the purchase timing. Once the entire amount is claimed, GST is not applicable to repayments or balloon.

To be eligible for business credit products, vehicles must meet ATO rulings and be for use in that business. All types of vehicles may be funded with CHP. That includes utes, cab chassis, vans, wagons. SUVs, MPVs, sedans and all body types of passenger vehicles.

Interest rates for HP vary across the lending market. HP rates tend to be in line with Chattel Mortgage and the lowest of the selection of business funding options. The interest rate offered will depend on the assessment of the application by the lender.

Sole traders are eligible for CHP as are all types of business structures and operations of all sizes. An ABN is essential, but GST is not required.

Yes. Where the van is deemed for use in a business, it is eligible for CHP.

Many lenders will offer a no deposit option for CHP arrangements. This allows the full purchase price to be included in the funding arrangement. No deposit is subject to lender approval.

Yes. All types of vehicles, new and second-hand, may be purchased with CHP. In some instances, the interest rate and funding terms and conditions can be different for used vehicles than for brand new.

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Our Lenders

Trusted by 60+ lenders Australia-wide

Westpac
Liberty
Automotive Financial Services
Macquarie
Finance One
Commonwealth Bank
Pepper Money
Morris
National Australia Bank
RACV
Get Capital
Prospa
Grow
Selfco Leasing
Scottish Pacific