How it works:
The Offer to Hire agreement is a contract where the lender acts as the owner and gives you, the hirer, possession and use of a vehicle. In return you make regular payments.
When the final payment is made, you then own the vehicle.
- Depreciation on the vehicle and the interest component of the repayment may be tax deductible if it is used to produce assessable income or the expense is necessarily incurred in carrying on a business. Your accountant will advise you on tax matters.
Cash flow Management
- Can be with no deposit or an amount that suits you
- Usually only the vehicle is needed for security
- Repayments can be tailored to suit your cash flow. You can also make a balloon payment at the end of the facility to reduce your regular repayments
- From 1 to 7 year loan term
- Make payments monthly, quarterly, semi-annually, annually, seasonally or irregular
- You can repay the contract in full before the term ends, however, early termination fees may apply
- Interest rates are fixed