If you choose to purchase your vehicle outright, you won’t require a loan or be required to make interest payments.
Through a Chattel mortgage a financier will loan the amount for the vehicle and will be a mortgage loan and becomes an asset from the time of purchase. You can claim GST up front and fixed rates but will incur interest, principle payments and potential loss of asset if you default.
With hire purchase, a financier purchases the vehicle and loans it back to the customer for a fixed term. At the end of the term, this becomes and asset. You’ll benefit from fixed rates and the ability to claim GST up front but will be required to pay interest and lease payments.
Finance lease is another alternative where the financier purchases the vehicle on behalf of the customer. The customer then pays a fixed monthly lease. The vehicle does not become an asset, but the customer has the option to purchase the vehicle. You’ll get fixed rates, tax deductions for lease payments and can make advanced lease payments for tax or cashflow purposes. The downside is that there are extra lease payments.