Business car finance

Hire Purchase

This type of finance is an agreement between you and the lender to acquire a car(s). During the hire period, the lender (Commonwealth Bank) legally owns the car and you pay regular installments to the lender. When you pay off the loan in full, legal ownership is transferred to you.

The benefits:

  • You can finance 100% of the vehicle purchase price, or place a deposit.
  • You can purchase the vehicle at anytime during the term of the agreement.
  • You are protected from interest rate fluctuations during the hiring period.
  • If you use your car to generate assessable income, the interest component of the instalments and the depreciation on the car may be tax deductible.
  • If the vehicle is used by your business which is registered for GST and accounts for GST on a non-
    cashbasis, any GST credit entitlement the business may have, can be claimed upfront via the Business
    Activity Statement.