A hire purchase arrangement is an agreement to purchase vehicles, plant or equipment subject to payment terms. During the term of the agreement, the Bank or Finance Provider owns the vehicle, plant or equipment. Ownership is automatically transferred to you when you make the final payment. You also have the option to purchase the equipment at any time during the term of the agreement.
Hire Purchase Features
- Repayments can be tailored to your cash flow
- Irregular and seasonal repayment plans are available
Hire Purchase Business benefits
- You own the equipment when the final repayment is made
- You can purchase the equipment at any time during the term of the agreement
- There is no need for a deposit
- Flexible repayment arrangements maximise cash flow
- The interest component of the repayments and the depreciation on the equipment may be claimed as tax deductions, provided the equipment is used to generate assessable income
Deposits are optional but generally not required. Hire Purchase agreements are subject to GST. Where the term charges are disclosed in the hire purchase agreement, GST is calculated on the cost of the equipment less the input tax credit applicable to the purchase. Repayments are not subject to GST.
Our Car Finance Options
Platinum Car Loans offers you all the right car financing options, these include Novated Lease or Novated Leasing, Commercial Hire Purchase, Chattel Mortgage, Car Lease, Finance Lease, Novated Lease, Operating Lease and all Consumer Secured Car Loans.
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