If your vehicle is primarily used from business purposes you are eligible for a Commercial Hire Purchase (CHP) contract.

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.

Flexibility

Flexibility is an attractive feature of a CHP. You can either finance the total purchase price, or use a deposit or trade-in to
reduce the loan repayments. You can even use the GST refund to contribute towards paying off the loan, thereby reducing
the amount financed and the interest paid over the term of the loan.

Tax Benefits

Unlike a chattel mortgage, under a CHP arrangement you do not become owner of the motor vehicle until all monies owed
under the arrangement are paid. However, you can still claim a tax deduction for the depreciation on the motor vehicle
as well as the interest component of the loan repayments where the motor vehicle is used for business related purposes.

In addition, GST is not payable on the loan repayments.

Other Benefits

Other benefits of a CHP include:

• The repayments are fixed over the term of the loan.
• The term of the loan ranges from 9 months to 60 months.
• You can structure the repayments with or without a balloon payment at the end
  of the term of the loan to tailor your repayments to suit your cash flow.