A chattel mortgage is tailored directly to sole traders, partnerships or businesses and is not offered on a personal basis. It works by which, funds are transferred from the financier to the customer and the customer takes ownership of the vehicle when the purchase is made. As a loan security, the financier takes a mortgage over the car. Once all repayments have been made and the contract is finalised, legal interest from the financier is released.
Benefits
- Balloon option will enable repayments to be tailored to a budget
- Fixed monthly repayments
- A GST registered business can claim the GST component in the car price via input credits
- Balloon amount not subject to GST
- Monthly repayments not subject to GST
- Generous tax deductions
- Finance is secured against the vehicle, meaning lower interest rates
Chattel Mortgage rates can start from as low as 4.49% (5.34% comparison rate) and is common for businesses as they can often claim back tax on interest and depreciation. We pride ourselves on making the finance application process as streamlined and as quick as possible. Whether it’s a small car, a new ute or a large truck, you tell us how much you need and we will work with you to get you in the drivers seat as quick as possible.
