With an Hire Purchase, the bank or financier purchases the asset and then ‘hires’ it back to the customer.
Ideal for companies and business professionals who need motor vehicles, trucks, earth moving, agricultural, industrial plant or professional equipment. The customer must hold an ABN, ARBN or ACN and the product must be used primarily for business purposes.
Hire Purchase is a great option for customers, as you can use a vehicle without drawing from your cash flow. Payments can be either fixed or flexible, depending on your cash flow requirements. You can opt to reduce monthly or regular repayments using a balloon payment (residual value) payment, due at the end of the loan term.
As one of Australia’s most respected car leasing lenders, G-Force Finance Solutions offers competitive finance and leasing agreements on both new and used assets. We have access to some of Australia’s premier finance & leasing products from over 15 of Australia’s trusted financial lenders and can recommend the right agreement to suit your circumstances.
Hire Purchase Features
With an Hire Purchase, the lender will agree to purchase the car on behalf of the customer and hire it out for an agreed period with a fixed monthly payment. The interest rate remains the same for the period of the agreement.
Various Loan Terms & Lenders
With our broad access to over 15 Lenders, we have access to flexible terms from 2 to 7 years across a wide range of products with or without a Balloon/Residual Payment. You can borrow up to 100% of the cost upfront, including registration, insurance and on-road costs.
Under a Hire Purchase agreement, you will pay off the asset over time. Once you’ve made the final balloon payment, you own it. While the legal ownership of the asset rests with lender during the contract period, the customer can enjoy the benefits of full ownership. The customer is responsible for all the costs associated with the asset including registration, insurance and maintenance.
Preserve Cashflow & Capital
Preserves ‘working capital’—no deposit, 100 per cent finance. Easier cash flow management—payment terms can be matched to income flows. Item being financed is normally sufficient security for the finance and, therefore, won’t tie up other assets.
Where the supply of goods to you under a Hire Purchase agreement is a taxable supply, the price you pay for the goods includes GST. If you use the goods in your business, you may be able to claim a GST credit for any GST included in the purchase price of the goods. * Please seek advice from your accountant.
Help you get the Pre-Approval
Our application process is quick & easy. G-Force Finance Solutions has national coverage, systems and advisers that can get your application approved fast. If you haven’t yet found the right vehicle or asset, that’s ok as we will help organise pre-approval, knowing exactly what you can afford, so you can find the right asset with peace of mind.
Important Factors to Keep in Mind
Just as you would with a standard loan, it’s important to work out how much you can afford to borrow on your loan. Work out how much you need to borrow and create a budget to work out how much you can afford to pay back each month.
It’s also worth considering the tax benefits. You may be able to claim tax back on the interest you pay on the loan, on the assets running costs, and depreciation. The GST component of the Offer to Hire may also be tax deductible.
We are ready when you are ready to make the move – your advisor will prepare the paperwork, liaise with the lenders every step of the way to the settlement.
Our advisers will discuss your personal circumstances with you, such as your income, outgoings, future plans and savings, together with the end to end process and steps involved – we seek to understand your short, medium and long term goals.
Visit our Loan Calculators today and take the next step by clicking the “Quick Quote” Button and our finance advisers will then get to work on sourcing you a tailor-made package from our trusted panel of lenders and will work tirelessly to get you the right solution.