The full amount of the repayments is not tax deductible, only the interest portion of the repayment is deductible. The borrower realises a tax benefit or deduction, at the end of the financial year through the depreciation allowance. The allowed amount of depreciation is deducted from pre-tax income and reduces the tax obligation.
The car is depreciated as per ATO rulings as a certain percentage each year over the depreciable term of the asset. That term may be spread over a longer period than the actual CHP loan term. Cash or accrual GST claims can vary on how the GST method is claimed against the motor vehicle.
Jade recommends you discuss with your taxation professional or accountant when deciding on the best method for your business.