Commercial Hire Purchase
Commercial hire purchase (CHP) is an agreement between the purchaser and the financier whereby the financier owns the vehicle or equipment during the hiring period. It differs from a finance lease in that the goods automatically become yours once all terms of the agreement have been completed – usually when the final installment is paid. As such it is finance taken out by a business when they wish to purchase the goods.
Do I need to pay full payment on the Commercial Hire Purchase?
A Commercial Hire Purchase can be arranged with or without a final balloon payment at the end of the term depending on what your budgetary requirements are. The balloon payment is the left over part of the contract that you have nominated to be left unpaid to the end of the chosen term. This is in most cases the chosen by the borrower subject to his choice of term for the goods being purchased. Many people choose either to refinance at the end of the term or sell the goods and purchase new for tax purposes
With a CHP, are my repayments different from month to month?
The repayments are fixed for the term of the CHP. The repayments on a CHP are also known as rental payments. An upfront deposit or trade-in can/will reduce your rental commitments, which is optional.