A chattel mortgage loan allows business owners to purchase vehicles and take full ownership of said vehicle. It’s a great option for businesses that require the use of cars or trucks in order to operate efficiently. It doesn’t matter the size of the business – all businesses are eligible to apply for any chattel mortgage Australia wide, whether they are a small business, large corporation, or a sole trader.
The lender will keep the title on the vehicle as security for the loan.
The lender will register this interest in the vehicle with the Personal Properties Security Register (PPSR).
Once the borrower has completely paid back the loan, the lender will pass on the title of the vehicle to the borrower.
A chattel mortgage is for people who are going to use the car they buy for business purposes more than 50% of the time. Unlike a lease, with a chattel mortgage you take ownership of the car from the moment you buy it.
If you are a company, partnership or sole trader, there are quite a few benefits to buying with this type of car loan.
There are tonnes of great benefits to this type of loan for business owners:
If you want to know whether this type of loan is right for you, call us on 1300 185 205 to find out more and chat to us about your business’s needs and financial situation.
We can’t wait to help you. With access to over 30 of Australia’s top banks and alternative lenders, you can rest assured that we’re finding you the best loan possible.
If you’re ready to apply for a car chattel mortgage online now, take 30 seconds to fill out the Quick Quote form. Once you apply for the loan, you’ll most likely hear back from us with an answer within 24 hours of submitting your application.
You can claim the total GST on the vehicle in your first BAS statement after buying it, instead of claiming GST over the term of the loan.
Depreciation of the car and the interest portion of the loan can be claimed in your tax.
You can apply for 100% finance, use a deposit as part payment, or trade-in your current vehicle, using the chattel mortgage for the balance of the purchase price.
No GST is charged on the periodical repayments or the final balloon payment.
Chattel mortgage rates are generally lower because the loan is secured against the car.
That depends on your circumstances. If you own a business and use the cash method of accounting, chattel finance could be for you.
The best way of really understanding if this particular loan is your best option is to call one of our car lending experts. They can go through the upsides, other possible car loan or car lease options, the advantages of lower chattel mortgage rates, and the benefits to your business.
If you want to have some idea of the savings you could enjoy with a chattel loan before calling us, use our car loan calculator. Car loan rates start from 4.49%, while chattel rates start from 5.19%.
Note: The repayments given by this calculator are an estimate, and do not constitute a quote. Your car loan payments may vary based on your personal or business finance profile.
To get an exact quote for finance, complete a quick car loan quote.
If you have any questions or would like to know more, please request a Quick Quote and one of our lending managers will contact you shortly.