Equipment purchases are vital to almost all businesses which is why at Finstar Financial, we offer the facilities for commercial hire purchases.
Commercial Hire purchases, also referred to as a Corporate Hire Purchase is a product where you can hire a vehicle from the financier for a set period of time at an agreed fixed monthly repayment. Under a Commercial Hire Purchase agreement, the financier agrees to purchase the car on behalf of the client, then in turn hiring it back to them over a set amount of time.
While the customer has access to use the vehicle for the term of the contract, they are not the owner of the vehicle. The ownership of the car will become the customers upon the end of the term once the total price of the vehicle as well as the interest charges have been paid in full.
Benefits of a Commercial Hire Purchase with Finstar Financial
- Flexible terms available
- Fixed interest rates
- You’ll know the costs in advanced
- Your deposit can be either cash or trade-in
- A tax deduction is available when the vehicle is used for business purposes
- GST is not charged on the monthly rental or residual payment (but is charged on fees and interest)
- Customers that are registered for GST are able to claim the GST in the vehicle price, fees and interest
- The finance is secured against the vehicle, allowing for lower interest rates