Hire Purchase

This type of finance is an agreement between you and the lender to acquire a vehicle. During the hire period, the lender legally owns the vehicle and you pay regular instalments to the lender. When you pay off the loan in full, legal ownership is transferred to you.

The benefits:

• You can finance 100% of the vehicle purchase price, or place a deposit.

• You can purchase the vehicle at anytime during the term of the agreement.

• You are protected from interest rate fluctuations during the loan period.

• If you use your car to generate assessable income, the interest component of the instalments and the depreciation on the car may be tax deductible.

If the vehicle is used by your business which is registered for GST and accounts for GST on a non-cash basis, any GST credit entitlement the business may have, can be claimed upfront via the Business Activity Statement.