What is a hire purchase?

Hire purchase is a popular arrangement that allows businesses to quickly obtain valuable assets while distributing the cost over a set period. With hire purchase, you can immediately access business vehicles, equipment or machinery. This makes it an ideal option for startups, growing businesses, or if you need to upgrade your business assets.

Through monthly instalments, you can gradually gain ownership of the business equipment while using it. The predetermined repayment terms and fixed interest rates provide make it easier to budget and maintain cash flow stability.

What you can finance with hire purchase

  • Vehicles: cars, utes and vans

  • Heavy vehicles: trucks, trailers and buses

  • Agricultural equipment: tractors, trowels and cultivators

  • Construction and access equipment: excavators, loaders, forklifts and scissor lifts

  • Other business needs: computers, fit outs and manufacturing

Eligibility and application

  1. Your business has a valid Australian Business Number (ABN).

  2. Your business is registered for Goods and Services Tax (GST).

  3. You intend to use the product mostly for business purposes.

The benefits of a hire purchase

Enjoy fixed rates and convenient repayments.

Rent to own your business assets

Use the goods while you pay for them and enjoy a loan term generally between 12 and 60 months.

Flexible payment instalments

Easy to manage payment instalment plans.

Fixed interest rate for the entire agreement

Budget easier knowing repayments are fixed.

Use the asset as security

Generally the only security needed is the asset itself.

Support when you need it

Get advice from our dedicated equipment finance specialists and bankers that understand your business needs.

Business tax benefits

Potential tax deductions on depreciation, interest, and related fees with a hire purchase.

Hire purchase charges and fees

What it costs to get started.

Upfront deposit

$ 0

No deposit required for most purchases – assessed on application.

Monthly fees

$ 0

No additional monthly fees for maintaining your hire purchase lease.

Initial set up fee

$ 660

Includes $632.50 Documentation and Settlement fee (inc GST) and $27.50 Personal Property Securities Register (PPSR) Registration and Maintenance fee (inc GST).

How hire purchase works

Apply and collect your vehicle or equipment in four easy steps.

Step 1: Choose your vehicle or equipment

Let us help you find the right asset for your business— talk to our NAB equipment finance specialist.

Step 2: Apply

Apply over the phone or in any NAB branch with a business banker.

Step 3: Sign documents

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

Step 4: Collect your vehicle or equipment

When we get your documents, your vehicle or equipment is ready to be collected, we’ll pay the supplier within one business day.

What will my repayments be?

Your rental payments will vary depending on what you're looking to buy, so let our NAB equipment finance specialist tailor a solution for you. We offer a range of flexible repayment structures to suit your individual needs.

Hire purchase: Vehicle and equipment fact sheet

Understanding NAB’s hire purchase.

  • Additional fees may apply if you:

    • already own the vehicle or equipment
    • are buying the vehicle or equipment from a person or business that doesn't generally sell this type of equipment as part of their normal course of business
    • are purchasing specialised equipment
    • want to make a change to the loan after it has been drawn down.

    Find full details in our Business Banking Fees and Charges guide.

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

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

    If you want to make several vehicle or equipment purchases annually, we can set you up with a limit to save you reapplying. Contact a NAB Equipment Finance Specialist to find out more.

  • If you’ve already paid for the vehicle or equipment, it’s not too late – we may be able to buy it from you, reimburse the cost, and you can hire it from us.

  • Once you've made the final payment, you'll become the owner of the vehicle or equipment.

Calculators and tools

Use our tools and calculators to help you plan and run your business.

Other ways we can help

Use our help guides, FAQs and other support services to help you manage your banking more easily.

Other finance options to consider

Not quite what you're looking for? See our other business loans and leases.

Get in touch

Sales enquiries

Let us help with your business banking needs. Request a call back to chat with one of our business bankers.

Contact us

Visit our business banking contact page for how-to-guides, FAQs and contact numbers.

Visit a NAB business banking centre

Let our business banking specialists help you in person.

Terms and Conditions

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

The tax comments provided in this document are of a general nature and do not take into account any particular person’s objectives, financial situation or needs. The tax benefit information is based on present taxation laws and regulations, which may be subject to change. NAB recommends that you seek independent tax advice before making any decision based on this information, including 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 Limited ABN 12 004 044 937.