Are you a sole trader or business looking for a tax-effective solution for your transport needs? Project 1 Finance Pty Ltd can help by finding the best hire purchase deal for you. Our consultants are on hand to offer their expertise in this area and our personalised service is second to none.
What is a hire purchase?
Hire purchase is when a lender agrees to purchase a vehicle on behalf of the customer and hire it out for an approved period – usually three to five years (although this is negotiable). Depending on your budget, you choose the vehicle’s make and model and once the final payment is made, you then own the vehicle outright, including a balloon repayment if applicable.
There are upfront costs – a deposit, stamp duty, registration fees and your first loan repayment, however these can be added to the amount you are lending.
The interest rate is fixed and the monthly payments are based on the total purchase price – inclusive of GST, plus interest charges, duties and other fees. (GST is not payable on the repayments).
Unlike a car lease, you have the option with or without a balloon. This does very little to affect your overall tax claim – its main benefit is flexibility for the customer in regards to their budget and affordability.
The customer is responsible for all the costs associated with the vehicle including registration, insurance and maintenance. Comprehensive insurance is compulsory, with the customer responsible for paying the premiums.
If a customer who has an agreement for a hire purchase fails to make the required loan repayments, the company funding the vehicle can reclaim it. Whether the repossession is voluntary or involuntary, the customer is generally not eligible to receive any money back that has already been placed towards the hire purchase.
Hire purchases are becoming more and more popular, but with so much choice on the market, how do you make a decision that best suits you? You come to us at Project 1 Finance Pty Ltd, of course! We’ll beat the quotes offered by banks and lenders direct, meaning you can be on the road with your pride and joy in no time. For more information about hire purchases, please get in touch with us today. We’re happy to help!
Why choose Project 1 Finance?
Fix loan terms
We only deal with trusted Australian lenders, who are viable and willing to assist in negotiating a flexible loan, tailored to your needs.
Project 1 Finance Pty Ltd is a brokerage that works with its clients to ensure they know the real deal and what is being offered is the right fit for them.
We work effortlessly to find you the best loan solutions at the most competitive rates