Hire Purchase (CHP) - Overview
hirepurchase(CPH)
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.
Options other than operating leases? Find out about:
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.
I have been umming and arring for the past 6 months over cars and getting my head around a few factors. I spoke to Frank this afternoon (Mon 5th Nov) and all I can say is that in 10minutes he has made more sense to me than anyone else in 3 months.
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Mr M Evans, Brisbane QLD
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Ms K McKeegan, Geelong VIC
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Ms J Granger, Gerringong NSW
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Mr G Inskip, Killarney Vale NSW
I wish to commend a member of your staff that recently helped us purchase a new vehicle. Having rung various companies/garages trying to locate a particular vehicle that we wanted, we found that most companies
did not even have the courtesy to call us back. We were fortunate enough to speak with Paul, who was extremely efficient right from the start. He explained what was involved in purchasing the car and also made several calls to locate a car for us almost immediately. We took delivery of our car yesterday and would have no hesitation in recommending Paul to our friends/relatives. Thank you once again for the excellent service.
Ms A Johnson, Wangara WA
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Ms A Merciadez, Pyrmont NSW
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Ms Kirgan, Picnic Pt, NSW
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Ms Redmond, Matraville NSW
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