Jade Finance provides Commercial Hire Purchase (CHP) to all types of businesses for the purchase of a wide range of motor vehicles to be used for business purposes. CHP is a widely-used commercial finance product as it suits the many businesses that operate with a cash or accrual accounting system. To confirm if this is the best option for your business, we recommend you consult with your accountant. If desired, you can have your accountant speak directly with your Jade Finance consultant to expedite your CHP loan.
We offer a complete portfolio of commercial finance products and each has varying features and benefits in regard to the treatment of GST, asset depreciation, balance sheet strategy and tax deductions.
By definition, CHP involves the lender purchasing the motor vehicle on behalf of the borrower and hiring it back to the borrower at the pre-set and fixed monthly payment. The borrower has full use the vehicle for the term of the loan but the lender holds ownership title until all payments are finalised. The borrower is responsible for all ongoing expenses of the car during the loan term.
- Jade Finance CHP contracts are all based on our cheap interest rates. Guaranteed.
- CHP is suitable for the purchase of vehicles to be used primarily for business purposes.
- Suitable for sedans, utes, SUVs, light trucks, wagons which can be purchased new or used from a private seller, dealer, online or through an auction house.
- Suitable for solo businesses, tradies, professionals, partnerships, SMEs and large business operations for the purchase of one or multiple vehicles.
- Additional costs associated with the purchase, eg rego, dealer charges, on-road costs, etc, may be included in the CHP car loan.
- Suited for businesses using cash or accrual accounting methods.
- Interest rate, monthly payments and term of the CHP loan are fixed.
- Terms available from 12 months to 60 months, dependent on particulars of the car.
- No deposit is required on CHP by the lender.
- Interest on the CHP loan is a tax deduction but the monthly repayment is not deductible.
- The borrower can claim the GST on the purchase price of the car on the next BAS.
- GST does not apply, or is claimable, on the repayments, balloon or interest portion.
- GST does apply and is claimable on any charges and fees incorporated in the repayments.
- ATO guidelines determine depreciation of the car.
- Balloon amount may be included in a CHP, not compulsory. If included, it is due to be paid after the final repayment at the conclusion of the loan term. Jade Finance can arrange refinancing of balloon amount if required.
- When all payments are finalised, the ownership of the car is transferred from lender to borrower.
Jade Broker Benefits
Jade Finance is accredited with over 40 banks and lenders, so we have a vast selection of sources to acquire you the best car CHP at the cheapest interest rates on the market.
If you do wish your bank to finance your car purchase, your Jade consultant will negotiate on your behalf and handle the CHP deal. With our superior negotiating skills and strong bargaining power, we have the advantage when it comes to securing the best CHP car deals.
Speak with a Jade Finance Consultant to discuss a Commercial Hire Purchase deal for your business motor vehicle purchase. Call 1300 000 003