A Hire Purchase agreement is an agreement to purchase a vehicle/equipment.
During the term of the Hire Purchase Agreement the Lender/Financier owns the vehicle/equipment. Ownership automatically transfers to the hirer once the final payment is made.
The Hirer has the option to purchase the equipment at any time during the term of the agreement.
Deposits are optional.
The Hirer also has an option as to whether a balloon payment is required or not (to fit in with cash flow budget).
Interest and Depreciation are tax deductible provided you use the vehicle/equipment to generate assessable income.
There is no GST payable on repayments.
Note: (We do not purport to provide taxation or legal advice and strongly recommend that you consult your financial or taxation advisor for specific advice)