Commercial hire

Commercial hire purchase

What is a Hire Purchase?

Hire purchase finance is an agreement between you and the lender to acquire an asset for your business. During the hire period, the financier legally owns the asset and you pay regular instalments to the finance company for the use of the vehicle.

Tax and GST:

Under a HP you can claim depreciation, running costs and interest paid apportioned to the amount of business use. GST is payable on the purchase price of the vehicle, all repayments/ charges and any fees. These GST charges are payable at settlement of the contract, and may be financed on top of the loan or paid upfront.

Cost of Finance:

Typically similar if not the same as chattel.

CoverU can provide you access to the most competitive CHP’s available with:

  • Flexible contract terms ranging from 12 to 60 months
  • Tailored monthly payment to suit your budgets
  • Flexible residual values (balloon)
  • Fixed interest rates
  • Fixed repayments for the term of the contract
  • Deposits through cash or trade in welcome
  • Claim tax deductions for 100% of the business use of the vehicle
  • Claim GST on the purchase price of the vehicle
  • Claim depreciation on the vehicle
  • No GST is charged on the monthly repayment or the contract balloon amount
  • Secured finance allowing for cheaper interest rates

Contact CoverU today to see how much we can save you!

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1300 122 211