A commercial hire purchase (CHP) is a commercial finance product that enables a business to buy a car after an agreed lease period.
How to use the commercial hire calculator
Using the calculator is simple. Enter your information into the relevant fields and it will calculate your repayments on your car finance.
Loan amount. This is the overall cost of the hire purchase loan.
Loan term. The loan term is how long you agree to lease the car for before it can be purchased. It's generally between 1 and 5 years for fixed repayments or 1 and 7 years for variable.
Residual (balloon) amount. This is an additional payment that is made at the end of the hire period to buy the car outright.
Interest rate. The rate of interest that you pay for the commercial hire purchase. This may be fixed or variable.
*Whilst every effort has been made to ensure the accuracy of this calculator, the results should only be used as an indication. They are neither a recommendation nor an eligibility test for any product and should not be construed as financial advice, investment advice or any other sort of advice.
John is looking to purchase a new vehicle for his delivery service business. His cash flow won't allow for him to buy a new vehicle, so he wants to know how much his repayments will be with a commercial hire purchase. Using the CHP calculator, he enters the following amounts:
Loan amount: $10,000
Loan term: 3 years
Residual: 15% ($1,500)
Interest rate: 8% p.a.
He can see that his monthly repayments will be $274.53. Wanting to save some money, he sees what would happen if he made weekly repayments. Using the calculator, he can see that his weekly repayments would be $63.35, which would be approximately $20 less a month than if he made monthly repayments.
* This is a fictional, but realistic, example.
Have more questions about using the commercial hire purchase calculator?
How can I use the calculator to reduce my repayments?
As outlined in the example above, you can change the information you enter into the calculator and see if your repayments are reduced. By simply changing from monthly to weekly repayments, John was able to reduce the amount he paid each month. You can also increase your residual payment, but keep in mind that this will still need to be paid at the end of the loan term.
How can I reduce the amount of interest I repay on my loan?
Reducing interest and reducing repayments are 2 entirely different things, though you can reduce the interest payable by lowering your principal. You can reduce your interest by lowering your loan term, increasing the frequency of your repayments or by budgeting to make additional repayments.
How accurate is the calculator?
The calculator is an approximation, but it is accurate as long as the information you put into it is correct. Keep in mind the calculator doesn't take into account the fees or other costs that may come with your commercial hire purchase.
Do I need to supply any personal information to use the commercial hire purchase calculator?
No personal information is needed to use the CHP calculator. You only need the loan amount, loan term, interest rate, repayment frequency and residual amount and percentage (if applicable).
Does the commercial hire purchase calculator guarantee my loan repayments?
No, the CHP calculator will only provide you with a repayment amount based on the loan information you provide. It is up to the individual lender to decide what your actual loan and repayments will be.
Want to buy a classic car but don't have the ready money? There are still financing options available for classic vehicles. Find out what loans you have to choose one and which one will work best for you.
Read our review on the IMB offers a competitive fixed with its New Car Loan to help you finance a new car or one that's up to two years old, and find out if you're eligible to apply today.
How likely would you be to recommend Finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
Important information about this website
finder.com.au is one of Australia's leading comparison websites. We are committed to our readers and stands by our editorial principles
We try to take an open and transparent approach and provide a broad-based comparison service. However, you should be aware that while we are an independently owned service, our comparison service does not include all providers or all products available in the market.
Some product issuers may provide products or offer services through multiple brands, associated companies or different labeling arrangements. This can make it difficult for consumers to compare alternatives or identify the companies behind the products. However, we aim to provide information to enable consumers to understand these issues.
We make money by featuring products on our site. Compensation received from the providers featured on our site can influence which products we write about as well as where and how products appear on our page, but the order or placement of these products does not influence our assessment or opinions of them, nor is it an endorsement or recommendation for them.
Products marked as 'Top Pick', 'Promoted' or 'Advertisement' are prominently displayed either as a result of a commercial advertising arrangement or to highlight a particular product, provider or feature. Finder may receive remuneration from the Provider if you click on the related link, purchase or enquire about the product. Finder's decision to show a 'promoted' product is neither a recommendation that the product is appropriate for you nor an indication that the product is the best in its category. We encourage you to use the tools and information we provide to compare your options.
Where our site links to particular products or displays 'Go to site' buttons, we may receive a commission, referral fee or payment when you click on those buttons or apply for a product. You can learn more about how we make money.
When products are grouped in a table or list, the order in which they are initially sorted may be influenced by a range of factors including price, fees and discounts; commercial partnerships; product features; and brand popularity. We provide tools so you can sort and filter these lists to highlight features that matter to you.
Please read our website terms of use and privacy policy for more information about our services and our approach to privacy.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.