HP - Hire Purchase
CHP or HP is the same as Hire Purchase. A commercial car loan made available to companies and individuals for vehicles. It must be for business purposes. The terms vary up to 5 years with the interest rate fixed for the term of the contract.
Normally a CHP has regular monthly payments over the term of the loan. It can have a balloon or final payment, bulk payments in the loan suiting business that have irregular cash flows, even seasonal payments. By structuring the contract with a larger balloon payment at the end of the term reduces the monthly payment to suit your individual budget. At the end of the term you have the option to pay out the full amount, arrange car loan refinance over a further period of time (subject to lenders approval) or trade the car and having the loan paid out with the proceeds from the trade in amount.
Corporate Hire Purchase Features
- Vehicle must be used predominately for business purposes.
- The loan can be structured to suit your cash flow.
-
Deposit can be paid up front to reduce the amount that you borrow.
- GST on purchase can be claimed in your input credits.
- The method can vary depending on the method you pay GST. There is no GST on the repayments.
- The asset and liability are will be noted on the balance sheet.
- Interest and depreciation method can be claimable as an expense for accounting and taxation purposes.
Commercial Car Loans - Hire purchase
Get Finance Ezi commercial car loans to arrange your business finance today. Fast and great low car loan rates with a fully experienced business loan team. Phone 1300 003 003 or complete our EZY car finance online enquiry.
LOW DOCS business car finance!! Check with Finance Ezi today for our low bank car loan rates. For more information on low docs car loans.
Car Loan Calculator online to help with car finance repayments.
