A Commercial Hire Purchase (CHP) agreement is essentially the same as the Chattel Mortgage, it is typically used by those who have business use for the item be it a car or piece of equipment. Finance is typically taken over a nominated term with an option to add a residual or “balloon” payment.
Since changes made to the budget that came into effect in July 2012, the main difference between Hire Purchase and Chattel Mortgage is the way that GST is handled. Because of these changes Chattel Mortgage has fast become the consumers preference over Hire Purchase.
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If you have any questions or would like to get more information about a Commercial Hire Purchase, Send us an email and one of our experianced finance consultants will contact you shortly.