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Commercial Hire Purchase (CHP) Calculator

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This calculator comparison chart is provided for general reference purposes only. It is not in any way intended as a loan application, it is not a quote for finance or any indication that an application has been received or approved. The repayments quoted may not include all the fees and charges that may be applicable. The interest rates and the repayments displayed do not account for any conditions pertaining to your individual loan application. Therefore the interest rate and repayment you may be offered may vary from the amount shown.

CHP is a popular form of finance as it suits many businesses that use a cash accounting method and can be applied to the acquisition of motor vehicles, marine vessels, all types of business and industrial equipment, trucks and caravan/motorhome vehicles for business use.

With all fields completed, simply click calculate.

Click Calculate, Your Monthly Repayment Estimate Will Be Displayed.

To alter the repayment, simply change the values you entered for loan term and balloon and you will see how those amounts change the repayment level.

If the repayment estimate is in your ballpark and you’re ready to move, contact Jade Finance via email or phone to get a quick quote on a CHP loan for your asset acquisition.

Click the “Get a Quick Quote” button for a quick quote or phone a Jade Finance consultant for a firm quote and to discuss your Commercial Hire Purchase finance requirements in detail. Call 1300 000 008.

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You simply enter the values of the asset you intend to purchase into the displayed fields and click calculate to arrive at the repayment estimate.

  • Enter the total amount you require to be financed with CHP. This may be only the asset price or the asset price plus an allowance to cover other expenditure involved in the purchase: delivery, commissioning, dealer charges, auction house fees. No deposit is required by most lenders on CHP finance so the full purchase price can be financed.

  • The interest rate field shows a range of values to select from. The interest rate on your specific CHP loan will be determined by a number of factors which are beyond the capability of the calculator to predict. To receive an estimate right now, simply enter the Jade interest rate displayed as our current business rate for the category of goods you are purchasing.

  • Enter the number of years you would like to repay your CHP loan. The range available for CHP is 1-7 years depending on the asset, lender and other factors. Repayments on CHP are not tax deductible, only the interest portion is tax deductible. This might impact your decision-making.

  • CHP finance has the option of including a balloon amount which is a percentage of the purchase price, payable at the conclusion of the loan term, when all other payments are finalised. If you choose this option, enter the value as a percentage of the total loan amount you entered above.

CHP Calculator FAQs

  • Yes. Light commercial vans are included in the business car finance category rather than a truck finance category. Loans are provided for all leading van manufacturers including Mercedes-Benz, Peugeot, Toyota, Ford Transit vans, Iveco Daily, Renault Trafic and Kangoo, Volkswagen Caddy and others. Car finance covers a wide range of vehicles including passenger cars, sedans, wagons, SUVs, hatches, utes, cab chassis, AWDs, 4WD and light vans, both new and used. This calculator can be used to generate estimates on petrol, diesel, hybrid and fully electric vehicles as this should have no impact on the finance offered for most applicants. In order to qualify for business vehicle finance interest rates, which are lower than personal car interest rates, the vehicle must be primarily for use in a business and purchased through a business entity. If you are starting a new business and operating under an ABN, low docs, no docs and ABN finance are possibilities.

  • Commercial finance facilities have the option that a portion of the loan amount be set aside from inclusion in the monthly repayments and paid at the end of the loan term. With CHP that amount is referred to as the balloon. Some people see a balloon as paying a deposit at the end of the loan term rather than upfront. By removing a percentage of the purchase price from the repayments calculations, it allows the monthly repayments to be less and in many cases, more affordable for many businesses. The balloon is usually spoken of in terms of a percentage of the purchase price. But on our calculator, it is represented as a dollar figure. For example, if you are purchasing a vehicle for $50,000 and request a balloon of 20%, you would enter a balloon of $10,000. Repayments would be calculated based on $40,000 and the $10,000 balloon plus interest and any other fees, would be due for payment after the final monthly repayment is made. A balloon can be paid either from a business funds or refinanced through a new loan deal.

  • No. The calculator is a generic device which is solely formatted to calculate repayments based on a pre-formatted and set formula. It calculates repayments based on the total loan amount entered for the loan term as entered, taking allowance for any balloon requested at the interest rate set. The interest rate is the current achievable rate by this lender based on certain loan applications. There is no allowance made for GST. If the loan amount entered is a GST inclusive price, then the repayments will cover the GST you are required to pay. Interest does not attract GST. How GST is claimable on a CHP finance contract will depend on the accounting method used by the business. GST will be applied to your car purchase, excluding rego, stamp duty if applicable and possibly other charges. How and when your business can claim the GST should be discussed with your accountant.

  • No. The calculator is designed purely to generate estimate repayments based on the data entered by the user. The values are based on the whole values as entered and do not account for any tax benefit which may be realised. CHP does offer businesses taxation benefits as we have outlined in our web page which details the features of CHP. When and how the income tax benefit of CHP is realised, will depend to a great extent on the accounting method used by the business and other aspects. You may need to refer to your accountant for direction in regard to your individual business. For the purpose of getting a rough ballpark figure on repayments for individual vehicles based purely on purchase price, loan term and balloon, please feel free to proceed with using our calculator.

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