AIMS Home Loans
Australian Credit Licence
Number 389027
HP and Leasing
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Hire Purchase
What is Hire Purchase?
Who can benefit?
What are the features?
What are the benefits?
Repayment Schedule
 
Leasing
What is Leasing?
Who can benefit?
What are the features?
What are the benefits?
Interest Rates
Fees and Charges
Repayment Schedule
What happens when the Lease Expires?


What is Hire Purchase?

The Hire Purchase agreement is simply a contract where the 'owner' of the goods allows you (the 'hirer') the right to possess and use an item of equipment in return for regular payments. When the final payment is made, the title to the goods is transferred to you.

Who can benefit?

All businesses wishing to finance the purchase of motor vehicles and trucks, industrial plant and equipment, earthmoving equipment, business and professional equipment.

What are the features?
  • Repayment schedules are flexible.
  • An Offer to Hire can be arranged with no deposit or an amount that suits you.
  • Balloon payments at the end of the term can be arranged.
    AIMS owns the goods until the final payment is made, at which point you gain automatic ownership.
  • The interest component of the rental and depreciation on the equipment are tax deductible, provided it is used to produce assessable income or the expense is necessarily incurred in carrying on a business.
  • You can repay the contract before the term ends.
What are the benefits?
  • Repayment schedules can be structured to suit your cash flow.
  • You can obtain the use of goods for minimal cash outlay, so working capital is not significantly affected.
  • You may be able to make use of the taxation benefits of hiring.
  • Flexible repayments allow for accurate capital budgeting.
  • Interest rates
  • The interest rate depends on the amount being financed and the security of the applicant. It is fixed throughout the term of the loan.
  • Fees and charges
  • An establishment fee applies, with no applicable GST.
  • A cash booklet is an additional charge
  • Break costs may apply in some states
Repayment Schedule

Repayments can be made:

  • Monthly
  • Yearly
  • Quarterly
  • Semi Annually
  • Seasonal
  • Irregular
What is Leasing?

The lease agreement is a contract where the lessor purchases the equipment or vehicle required by you (the lessee) and is therefore, the owner of the good(s). We then lease the goods to you under a Lease Agreement, which sets out the residual value of the goods, the term of the lease in months, the monthly rental and the depreciation rate.

Who can benefit?

Any firm, partnership, company and professional or business people who want to acquire plant-equipment, motor vehicles, or similar goods used in the production of assessable income.

What are the features?
  • Can obtain equipment without capital outlay.
  • Payments can be made on a monthly, quarterly, half yearly or irregular basis.
  • The terms of the lease are flexible, subject to AIMS and ATO guidelines (maximum term 60 months).
  • The residual value of the leased goods is established in accordance with a schedule issued by the Commissioner of Taxation.
  • Lease rentals are usually tax-deductible, if the leased goods are used to produce assessable income.
What are the benefits?
  • With no initial outlay required, you can use your working capital for other purposes.
  • You have the option to select the length of the lease term and the timing of repayments to suit your cashflow (maximum term 60 months).
  • You can negotiate rentals and residual values within an approved range, allowing more flexibility in budgeting.
  • You can utilise this product to finance their outlay of recently purchased equipment.
  • You may be able to make use of taxation benefits.
Interest rates

Interest rate is fixed throughout the term of the loan.

Fees and charges
  • An establishment fee is payable and includes GST.
  • The cash booklet fee is payable and includes GST.
  • Fees cannot be financed and must be paid by cheque at the time of signing the documents.
  • Monthly rentals payments may be subject to GST.
  • Pre-determination fees may apply.
Repayment Schedule

Repayments can be made:

  • Monthly
  • Yearly
  • Quarterly
  • Semi Annually
  • Seasonal
  • Irregular
  • Prepaid (according to tax office guidelines)
What happens when the Lease Expires?

When the lease expires, there are some alternatives available to you:

  • Return the equipment to AIMS who can sell it in the marketplace. If the net sale is less than the agreed residual value, you will need to make up the shortfall.
  • Refinance the residual value.
  • Payout the contract.
  • Make an offer to purchase the equipment, which may be accepted by AIMS.

For more information on AIMS Hire Purchase or Leasing, call 1300 132 467 or send en email to AIMS Home Loans.

Apply for a new home loan
For existing customers
Or call 02 9217 2727