Hire Purchase (CHP) - Overview
The Commercial Hire Purchase (CHP) agreement is simply a contract where the financier (the ‘owner’) allows you (the ‘hirer’) the right to possess and use a car or other vehicle in return for regular payments. A balloon payment (a final payment made at the end of the term - ideally this payment should be no more that the estimated value of the car at that time) is optional with a hire purchase agreement.
When the final payment of the commercial hire purchase is made, the title to the goods is transferred to you.
|With a CHP there may be significant tax advantages as you are able to claim the interest repayments as well as the depreciation of the asset whereas with a standard lease the actual repayments are the tax-deductable part of the equation.|
You also have the option to purchase the vehicle prior to the end of the term of the CHP.
Visit our leasing calculator , contact a finance consultant or call 1300 303 181 for more information.
Please note that in this brief explanation, we have referred to the finance structure as a Commercial Hire Purchase or CHP. This sort of finance structure is also known as a Corporate Hire Purchase and an Asset Purchase.
Disclaimer: We are not car financiers, nor are we able to offer advice regarding CHP. As car brokers, our aim is to get you the best purchase price on any new or used car . The information give here regarding hire purchases is for information only. However if you would like to contact one of our preferred companies that specialise in CHP, please follow the instructions above.