Your accountant may suggest that you take out a CHP, or Corporate Hire Purchase. This is a loan that may allow you depending on your individual circumstance to claim tax deductions for the GST component of the vehicle, the interest component of the loan, and the depreciation on the vehicle itself.
This arrangement is available to individuals, sole traders, and business entities and is generally the most popular finance arrangement taken out in Australia.
Under this agreement the financier owns the vehicle. While you have the vehicle under this arrangement you pay rental instalments to the financier according to the terms of your contract. You are able to have a balloon component under this agreement, you are able to pay a deposit to reduce the amount you wish to finance, and you are able to have a residual component at the end of the loan to reduce your monthly rental instalments.
| Before making any decision regarding a financial product you must always consult a qualified person capable of taking into consideration all factors relating to your personal financial circumstances. The above information is for reference purposes only and does not pertain to your personal situation, nor is it a statement of advice in any way. Motorcore Finance PTY LTD accept no responsibility for any loss that may arise as a result of this information. This arrangement is available only to approved persons. |
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