Commercial Hire Purchase (CHP)

To put it simply, a Commercial Hire Purchase (CHP) is an agreement where the purchaser is able to acquire a car or other vehicle through leasing it over a set repayment period. A CHP is a contract where the financier allows an individual the right to possess and use a car or vehicle in exchange for regular repayments.

With a CHP, an individual does not become the legal owner of the vehicle until all of the money owed has been settled. The contract is completed when the financier acknowledges receipt of the final lease repayment. Furthermore, a balloon payment, a sum of money due at the end of a lease, is due to the financier company to conclude the lease. The balloon payment is optional with a CHP.

As you are able to claim the interest repayments as well as the depreciation of the assets, with a CHP you may be eligible to make significant tax advantages, depending on your situation.

More advantages also include:

  • Flexible terms that vary from twelve to sixty months
  • A tax deduction can be obtained in the event the car is utilised for business purposes
  • Fixed interest rates
  • Reduced interest rates because the financial lease is being secured against the motor vehicle
  • Zero GST incurred within the monthly repayments

If you want any further information on this service and the benefits it can offer please contact one of our Packaging Consultants by phone on (02) 8875 7955 or email