CHP Commercial Hire Purchase
COMMERCIAL HIRE PURCHASE (CHP)
CHP means that a Loans company buys a vehicle for a customer and then hires the client the use of the motor vehicle on a contractually stated payment plan.
The purpose of this transaction is that ownership is gained upon the client making the final payment including any outstanding balances.
This method of financing the purchase of a vehicle or plant and equipment has largely been superseded with the introduction of Chattel Mortgages.
Please check with your financial advisor as to your individual needs.