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Commercial Hire Purchase – Buying a Car Through Commercial Hire Purchase

If, as a business, you are looking into the possibility of using a commercial hire purchase to obtain your next car, there are of course going to be things to bear in mind before you take the plunge. Obtaining a commercial hire purchase is these days fairly easy, with a number of commercial finance products to choose from with a fixed repayment system over a number of months.

Although here at Private Fleet we are not car financers, we can in this blog post look at some ways of buying a car through commercial hire purchase, and guide you in the right direction when it comes to setting a repayment structure or financing your purchase.

Deciding Commercial Hire Purchase is For You

There are many deciding factors when it comes to deciding whether commercial hire purchase is what you’re after. Organising finance is one of the most important things when it comes to buying a new car – but there are many benefits of commercial hire purchase you’re likely to find if you pay for your car upfront. Be sure to take a good look at your situation and decide whether the benefits outweigh the responsibility of having set monthly repayments.

How Does it Work

As already mentioned, with commercial hire purchase you repay a fixed amount over a number of months – with the vehicle becoming your sole possession once the repayments have been finalised. If you are a commercial user or a business, and you account for Goods and Service Tax (GST), there may be tax deductions available – and usually interest levels are fixed quite low as the finance is secured against the value of the vehicle.

At the end of the fixed term, you can often trade-in the vehicle, or re-finance the residual value to keep the car.

Setting your Payments

Only going for what you can afford naturally os the name of the game – but it pays in many instances to look at what deals are available with attractive interest levels. Many car manufacturers are vying for business during worldwide economic recession, so some excellent offers could be possible – with attractive service, warranty and insurance deals. Be sure to use some form of before you set up a commercial hire purchase, so you know exactly what pay structure is expected of you.

Commercial Hire Purchase

If you’d like to find out more from us about what exactly a entails, visit the hire purchase section of the site. If you’d rather stay away from operating leases, and would like to know more about other finance options, such as Novated Leases, contact us today:

http://www.privatefleet.com.au/about-us/national-contact-details/

Call: 1300 303 181

 

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