Commercial Hire Purchase
- MOST COMPETITIVE FIXED RATES FROM 4.85%COMPARISON RATE 5.72%*
- LOW FEES & TOTAL COST
- tax effective finance for your business
- we will beat any written quote*
Commercial Hire Purchases For Low Risk Finance
Are you a sole trader, partner in a company or owner of a trading company? Do you use your vehicle mainly for business purposes? Are you looking for a secured finance option with lower interest and still expense your repayments? Are you looking for benefits such as being able to claim the GST on the purchase upfront.
A Commercial Hire Purchase agreement uses your vehicle as the security on the loan meaning you can access a low interest rate.
This type of finance is ideal for businesses that use the cash method of accounting as they are able to claim the GST associated with the vehicle’s purchase upfront.
What is involved with a Commercial Hire Purchase
The financier secures and pays for a vehicle on your behalf with an offer to hire it back to you for an agreed time frame (the term). During the hire term you do not own the vehicle but you can use it as you see fit. Ownership passes to you at the end of the term and only after payment of the total price including interest, minus any residual costs.
360 Finance can offer you a Commercial Hire Purchase agreement from Australia’s leading lenders.
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Benefits of a 360 Commercial Hire Purchase
- Flexible contract terms ranging from 24 to 60 months
- Fixed interest rates
- Lower interest rates as finance is secured against the vehicle
- Repayments are fixed for the entire hire term
- A deposit can be used to lower repayments
- A residual value/balloon amount is offered
- Associated costs are upfront
- Tax deductions for businesses (see below)
- GST is not charged on either the monthly rental payment or residual value
Tax benefits for individuals using the commercial hire purchase method for a business vehicle
- Businesses who use the accrual method for GST can claim the GST component of the vehicle purchase price on the following BAS Statement
- Businesses who use the cash method for GST can claim the GST as equal instalments over the term of the agreement
- GST is not charged on either the repayments or the residual amount
- If business is GST registered you can claim the GST on the vehicle purchase price
- Interest portion of repayments can be claimed
- Depreciation on the vehicle can be claimed
- Hire purchase financial commitments are listed as capital expenditure on your balance sheet
This type of finance can be used by any individual but particularly suits individuals wanting a predominantly business vehicle including owners of sole trading business, partnerships and trading companies.
Why get a Commercial Hire Purchase arrangement through 360 Finance?
When it comes to funding business vehicles, we know what you need and where you are coming from. Having helped business owners, managers and staff throughout Australia we are confident that you’ll get a great Commercial Hire Purchase deal that is tailored to you and not some off the shelf, one size fits all product. We also promise to beat any written quote you supply, so why wait? Start by calling 1300 361 360 or make a quick enquiry. Your business will thank you as you drive away in a great new car!
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