Features of a commercial hire purchase with Advance Car Loans
-Terms range from 12 to 60 months.
-The interest rate is fixed for the term of the hire purchase agreement, as are your rentals.
-Subject to credit approval, Advance Car Loans will finance 100 per cent of the purchase price.
- It is possible to have a larger final payment (balloon), the amount required is subject to approval guidelines.
- Payments can be structured to suit individual needs, with budget and cash flow taken into consideration.
- With a fixed interest rate the applicant is protected against market fluctuations.
- Interest and depreciation are generally tax deductible.
- A balloon payment will lower monthly rentals and this not only improves cash flow, but makes the vehicle more affordable.
- Ownership automatically transfers with the final payment
GST and other duties
According to Advance Car Loans, rentals on a hire purchase agreement are not subject to GST, nor is the balloon payment. GST may be payable on the purchase price of the vehicle and other components of the transaction. Rentals are subject to stamp duty in most states. Potential applicants are advised to consult with taxation advisors for details on planning an effective tax position for business.