What is a hire purchase?

A hire purchase is when you take out a fixed period loan from us and we purchase a vehicle or equipment on your behalf. You have the use of the vehicle or equipment while you are paying off the loan. At the end of the loan term, when the loan is completely paid (including interest), ownership will transfer from us to you. This may be good option if you’re wanting to purchase a vehicle or piece of equipment, but don’t have the money to pay for it upfront.

Here's what you get

  • Certainty of a fixed interest rate
  • A loan term generally between 12 and 60 months
  • Generally the only security needed is the asset itself.1
  • Advice from our dedicated equipment finance specialists and bankers that understand your business needs.

Eligibility criteria

  • Your business has a valid Australian Business Number (ABN)
  • Your business is registered for Goods and Services Tax (GST)
  • You intend to use the product mostly for business purposes.

What can you finance?


Cars, utes and vans

Heavy vehicles

Trucks, trailers and buses

Agricultural equipment

Tractors, trowels, cultivators and more

Construction and access equipment

Excavators, loaders, forklifts, scissor lifts and more

Other equipment

Computers, fitouts and manufacturing

What it costs to get started

$0 Upfront deposit

For most purchases, no deposit is required – this will be assessed upon application.

$0 Monthly fees

No additional monthly fees for maintaining your Hire Purchase.


$550 Initial set up fee

Includes $522.50 Documentation and Settlement fee (inc GST) and $27.50 Personal Property Securities Register (PPSR) Registration & Maintenance fee (inc GST).2

What will your repayments be?

Hire payments vary depending on what you're looking to buy, so let a NAB business banker tailor a solution for you. We offer a range of flexible repayment structures including monthly, quarterly, seasonal or tailored to your business.

Here's how it works

  • Step 1 Choose your vehicle or equipment

    Find the right asset for your business. If you’re unsure talk to a NAB business banker.

  • Step 2 Apply

    You can apply over the phone or in any NAB branch with a business banker.

    Check what documents you need to apply

  • Step 3 Sign documents

    Once the details are sorted, we’ll send you the documents to sign and return.

  • Step 4 Collect the vehicle or equipment

    Once all documents are received and your vehicle or equipment is ready to be collected, we’ll pay the supplier within one business day.

Chat to one of our friendly business bankers today

How to choose the right equipment finance

How to select Equipment Finance for your business

Arranging car finance or purchasing other business equipment can seem complicated. However, there is a range of flexible Equipment Finance options to suit your business and provide you with more opportunity to use your working capital to help grow your business. Options include an equipment loan, hire purchase or finance lease agreement.


Frequently asked questions

Are there any other fees?

Additional fees may apply if:

  • You already own the vehicle or equipment
  • You're purchasing the vehicle or equipment from a person or business that:
    • does not have an ABN, or
    • is not registered for GST, or
    • does not generally sell this type of equipment as part of their normal course of business.
  • You're purchasing specialised equipment
  • You want to make a change to the loan after it has been drawn down
Full details can be found in our Fees & Charges guide.

Who owns the vehicle or equipment?

We’ll own the vehicle or equipment during the hire period but you will become the owner once you’ve made the final payment.

What are my purchase options?

You have the freedom to choose new or used, from a dealer or a private seller (as long as they have an ABN and are registered for GST).

If you have a number of vehicle or equipment purchases to make throughout the year, we can set you up with a limit to save you applying multiple times. Contact us to learn more.

What if I've already made the purchase?

If you’ve already paid for the vehicle or equipment, it’s not too late – we can buy it from you, reimburse you for the cost, and lease it back to you.

What are the tax benefits?

Some customers may be able to claim input tax credits for GST included in the price of the vehicle or equipment, term charges (interest) and related fees.

We recommend that you seek independent tax advice.

What’s the difference between a hire purchase and a lease?

The main difference is ownership. When you lease a vehicle or equipment, you never own it. You are only leasing or borrowing it for a set period, meaning you may have to hand it back once the lease term is up. When you hire purchase, you are paying back the cost of the vehicle or equipment over a set period, so that once the final payment is made, you own it.

Knowing which option is right for you depends on your circumstances. If you plan to regularly upgrade to the newest model, a lease arrangement might be better. If you want to be able to own the vehicle so that you can keep it as an asset, hire purchase may be the better choice.

Other options for your business

two people talking

Vehicle and Equipment Loan

The easy way to finance your next vehicle or equipment. Keep money in your business with no upfront deposit.

car garage

Novated Lease

Choose the vehicle you want with salary packaging, providing a range of benefits for businesses and employees.

man checking his tablet

Finance Lease

Rent the vehicle or equipment your business needs and return it at the end of the lease.

Important information

1Generally, the security is the asset itself; though in certain circumstances additional security might be required – this will be assessed on application.

2The Personal Property Securities Registration and Maintenance fee is payable for each asset you purchase and finance. Fees apply for standalone facilities and those drawn under a Master Asset Finance Agreement. Additional fees may apply, refer to our Business Banking Fees and Charges and Interest rates, fees and charges for more information.

Lending criteria and terms and conditions apply (available on application).

The tax comments provided in this document are of a general nature. NAB recommends that you seek independent tax advice in respect of the tax consequences arising from the use of any NAB Equipment Finance solution as they apply to your particular circumstances.

These products are issued by National Australia Bank Ltd ABN 12 004 044 937.

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