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.