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.