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Commercial Hire Purchase

A Commercial Hire Purchase, otherwise known as a CHP, or simply ‘Hire Purchase’, is a commercial finance product enabling the customer to hire a vehicle from a financier for a fixed term with fixed monthly repayments, to then take ownership of the vehicle once all principal and interest charges have been repaid to the financier.

How does a Commercial Hire Purchase (CHP) work?

During the hire term the customer has all the benefits of ownership and use of the vehicle, whilst the financier retains the actual ownership of the vehicle. The financier purchases the vehicle on behalf of, and as instructed by, the customer, who then hires the vehicle back from the financier, paying fixed monthly payments. At the end of the term the customer can then take ownership of the vehicle, continue on with the CHP for any residual amount (that would have been agreed upon at the start of the term), or trade the vehicle in for a new one and take out another commercial hire purchase.

Benefits to Business

  • Fixed interest rate and monthly repayments.
  • Flexible lease terms from 1 to 5 years.
  • Paymments tailored to match your business cash flow.
  • Residual value (Balloon) may be used in the contract.
  • No capital outlay required, although deposit or trade in may be used.
  • Fully tax deductible to the extent the vehicle is used for business purposes.
  • Applicable GST on purchase price of the vehicle can be included in amount financed.


  • Customers registered for GST may claim the GST on the initial purchase of the vehicle an as Input Tax Credit in their BAS.
  • GST is payable on both the monthly repayments or any residual value at the end of the term.

For further information on a Commercial Hire Purchase please contact us, or you may simply apply online.