So what is Hire Purchase? Like a Specific Security Agreement, a Hire Purchase will suit a customer who will use the vehicle predominantly for business purposes. A financier will agree to purchase the car on behalf of the customer and hire it out for an agreed period of time with a fixed monthly payment. The interest rate remains the same for the period of the agreement and the customer is responsible for all the costs associated with the vehicle including registration, insurance and maintenance.
Example of the type of business customer to use this option are companies, sole traders, trusts, ABN holders and people who receive a vehicle allowance.
For tax purposes, however, the customer is considered the owner of the vehicle from commencement of the loan contract. As long as the vehicle is used to generate income for the business, the depreciation and interest charges that relate to the hire purchase are tax deductible.
So contact Streams today to arrange your no obligation and personalised consultation regarding your business vehicle needs for this option…