The car must be predominately for business purposes.
Deposit can be paid up front to reduce the amount that you borrow.
GST on purchase can be claimed in your input credits. The method can vary depending on the method you pay GST. There is no GST on the car payments.
Interest and depreciation normally is claimable as an expense for accounting purpose.
CHP or HP is the same as Hire Purchase and is a type of business car finance made available to companies and individuals for vehicles. It must be for business purposes. The terms vary up to 5 years with the interest rate fixed for the term of the contract.
Normally a CHP has regular monthly payments over the term of the loan. It can have a balloon or final payment, bulk payments in the loan suiting business that have irregular cash flows, even seasonal payments. By structuring the contract with a larger balloon payment at the end of the term reduces the monthly payment to suit your individual budget. At the end of the term you have the option to pay out the full amount, arrange car loan refinance over a further period of time (subject to lenders approval) or trade the car and having the loan paid out with the proceeds from the trade in amount.
Car Finance Packaging
Commercial Car Loans - Hire Purchase
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