Commercial Hire Purchase (CHP) | Corporate Hire Purchase | Car Loans Finance | Australia

A Commercial Hire Purchase is a fixed contract between you and a financier for the financier to acquire a vehicle on your behalf for your business use.

The difference between a hire purchase agreement and a chattel mortgage is that a chattel mortgage is essentially just a mortgage over a financed vehicle. Whereas, with a commercial hire purchase the financier is the legal owner of the vehicle and you pay monthly contractual installments to rent the vehicle from them. At the end of the contract, ownership of the vehicle is transferred to you.