A Commercial Hire Purchase (CHP) may be suitable for businesses (including companies, partnerships and sole traders) who account for GST on either an Accruals or Cash basis. Prior to 1 July 2012, CHP were commonly used by individuals receiving a car allowance who used their vehicle predominantly for business purposes. However, due to changes to the GST treatment of CHP that came into effect on 1 July 2012 a CHP is now significantly less attractive. As such, employees with a car allowance may wish to consider other finance options (below).