Skip to main content
A AssetFinance.nz Get matched

Finance type

Hire Purchase

The most common way Kiwi businesses finance vehicles, equipment and machinery. Fixed payments, you own the asset at the end of the term.

See if it fits my business

Quick answer

Hire purchase is a fixed-term finance agreement where you pay off the cost of an asset in regular instalments and take ownership at the end. The lender holds security over the asset until the final payment. Indicative NZ rates currently start from around 7.6% p.a. for prime borrowers on new commercial assets, with terms typically running 24–60 months and deposits ranging from $0 to 20% depending on the asset and credit profile.

Who it suits

  • You want to own the asset at the end of the term
  • You want to claim depreciation and interest deductions yourself
  • You want a fixed repayment so it is easy to budget
  • The asset will hold useful value beyond the loan term

Pros

  • · Ownership transfers to you at the end of the term
  • · Fixed interest rate and fixed repayments — easy to forecast
  • · Claim depreciation and interest on your tax return
  • · Up to 100% finance available for established businesses on eligible new assets
  • · Asset shows as a fixed asset on the balance sheet

Cons

  • · The asset shows as a liability on the balance sheet until paid off
  • · Lender holds security over the asset until final payment
  • · Early-termination fees may apply if you exit before the end
  • · You bear residual value risk after the term ends

At a glance

Ownership during termLender (security)
Ownership at end of termYou — automatic on final payment
Balance sheet treatmentOn balance sheet (fixed asset + liability)
Who claims depreciationYou
Who claims interestYou (interest portion of each payment)
GST treatmentClaim GST on asset cost upfront (cash/invoice basis)
Typical term24–60 months
Deposit0–20% (subject to credit + asset type)
Indicative ratesFrom ~7.6% p.a. (subject to credit)
Max financeUp to 100% of invoice for new assets from a recognised dealer
Balloon / residualOptional balloon payment to reduce monthly repayments

Indicative rates only. Actual rate, deposit and term offered depend on the lender, asset, your business credit profile, and prevailing market conditions. All applications are subject to lender credit approval.

Get a hire purchase quote

Tell us about the asset and your business — we'll match you to NZ lenders most likely to fund it.

Start the match

Related finance options

Finance lease

Lender owns the asset; you operate it over its useful life and pay lease rentals.

Operating lease

Rental-style, off-balance-sheet, often bundled with maintenance.

Frequently asked questions

The lender buys the asset on your behalf and registers a security interest. You make fixed monthly repayments over an agreed term (typically 24–60 months) covering principal and interest. Ownership transfers to you automatically when the final payment is made. The asset sits on your balance sheet as a fixed asset, and you claim depreciation and interest deductions in your tax return.