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Description Commercial Hire Purchase
A
Hire Purchase arrangement is an agreement to purchase equipment subject
to payment terms. During the term of the Hire Purchase Agreement, the
Financier owns the vehicle or equipment, with ownership automatically
transferring to the borrower when the final payment is made. The
borrower has the option of purchasing the equipment at any time during
the term of the agreement.
The interest component of the payments and the depreciation on the equipment are tax-deductible, provided the equipment is used to generate assessable income.
The interest component of the payments and the depreciation on the equipment are tax-deductible, provided the equipment is used to generate assessable income.
