You have selected that you are an company, partnership or sole trader using the accrual accounting method.
If you wish to change this selection please go back and make another selection.
As you are using the accrual accounting method the appropriate option would be a Commercial Hire Purchase (CHP).
A Commercial Hire Purchase (CHP) is generally suitable for organisations using the 'accruals' method of accounting for
the Goods and Services Tax (GST) or for individuals who use their motor vehicle for business related purposes. Under the
'accruals' method, the GST component of the acquisition price of the motor vehicle (or other asset) can be claimed back
on the entity's next Business Activity Statement, rather than claiming the GST over the term of the finance contract.
Another option that is a common choice for customers with larger fleets or for those wishing to remove the residual risk
is an Operating Lease (maintained or non maintained). An Operating Lease is an arrangement where the lessee agrees
to lease the motor vehicle for a predetermined period, where at the end of the term the motor vehicle is handed back to
the leasing company. The leasing company assumes the risk with regards to the residual value of the motor vehicle
at the end of the lease. The lease can include operating costs (such as lease rental, servicing and maintenance,
registration and tyres) of the motor vehicle are covered by a single monthly payment.
Disclaimer: We recommend that prior to entering into any financial arrangement that you seek independent financial advice.
The information contained herein is of a general nature only and does not take into account your personal circumstances.
Southgate Financial Services Pty Ltd, its agents, employees and lenders accept no responsibility for any loss that may arise.
