Hire purchase

A hire purchase arrangement is an agreement to purchase vehicles, plant or equipment subject to payment terms. During the term of the agreement, the Commonwealth Bank owns the vehicle, plant or equipment. Ownership is automatically transferred to you when you make the final payment. You also have the option to purchase the equipment at any time during the term of the agreement.

Features

• Repayments can be tailored to your cash flow
• Irregular and seasonal repayment plans are available

Business benefits

• You own the equipment when the final repayment is made
• You can purchase the equipment at any time during the term of the agreement
• There is no need for a deposit
• Flexible repayment arrangements maximise cash flow
• The interest component of the repayments and the depreciation on the equipment may be claimed as tax deductions, provided the equipment is used to generate assessable income

Deposits are optional but generally not required. Hire purchase agreements are subject to GST. Where the term charges are disclosed in the hire purchase agreement, GST is calculated on the cost of the equipment less the input tax credit applicable to the purchase. Repayments are not subject to GST.

• Important information about advice
  As this advice has been prepared without considering your objectives, financial situation or needs, you should, before acting on the advice, consider its appropriateness to your circumstances. Applications are subject to the Bank’s normal credit approval. Full terms and conditions provided in the loan offer. Fees and charges are payable.