Chattel Mortgage Repayment Calculator

When you finance a car for business using a chattel mortgage, you will have a fixed interest rate for the period of the loan term. This means that your monthly repayments will be known in advance, and you can carefully plan your annual budget with these in mind.

You’ll want to run your car financing options past your accountant before you decide which option to go for, and your accountant is going to want some numbers he can use to help determine which option gives you the best net outcome.

Getting a Chattel Mortgage for Small Business

With a chattel mortgage, there’s GST benefits, and if you run a small enterprise you may even qualify for the small business tax break that’s available until 30th June 2017. This tax break allows you to write off purchases up to $20, 000 if you fall into the eligibility criteria.

To give your accountant the information he needs to work out the best car finance option for you, the quickest way is to use a chattel mortgage repayment calculator.

When to Use a Chattel Mortgage Repayment Calculator

This will give you some figures you can use to see whether you can afford the car that you want for your business. You’ll be able to determine what you can afford based on your current income.

To use the calculator, you’ll need to know the purchase price of the car you are after, how long you’ll take the loan for, and whether you plan to buy a new car or a used vehicle.

You can use the chattel mortgage calculator on this page to work out what your weekly repayments will be. Depending on your cash flow, you can choose to make weekly, fortnightly or monthly repayments.

With this information at your fingertips, you’ll soon know how much your business can afford to spend for a car, and you’ll be closer to finding the transport solution you need to keep moving forwards.

Case Study - Mark buys a People Mover for Non-profit Business

As CEO of a non-profit, Mark is under pressure to ensure the the vehicle he decides to purchase falls well within budget, as well as being able to effectively perform the daily tasks to keep his operation running.

He needs a new vehicle to use at the Mount Barker headquarters, where the old van they’ve used to transport employees is on its last legs.

A chattel mortgage is a perfect loan structure, as he’ll be able to claim the full GST rebate in the first year. As a non-profit organisation, vehicles don’t get upgraded regularly, and so whichever car they choose will be part of operations for the long haul.

The vehicle needs to be able to carry 7 adults and their luggage comfortably between the accommodation and the workshop. The Kia Carnival was an obvious choice - while not a glamourous car, it has a huge amount of space internally. Plus, with the seats folded up, the van could also be used to transport furniture and products to sell at the Salvage & Save Stores. The seats are even odour and stain resistant.

Using a chattel mortgage calculator, Mark works out that if he budgets $50, 000 for the Kia Carnival, for a loan term of 4 years, the repayments will be between $262 and $305 per weeks. At the end of the loan there won’t be any more to pay and the vehicle will form part of the depreciating assets of the organisation.

With this information, he can submit the purchase proposal to the company directors for approval to proceed with a chattel mortgage application.

Key benefits of choosing a chattel mortgage for business

  • No capital outlay
  • Flexible terms and fixed repayments so you can work out your budget
  • Full ownership of the vehicle
  • Residual value payment to maximise tax benefits and support cash flow.

How To Apply For a Chattel Mortgage

If you’re ready to find out more about how a chattel mortgage can benefit your business, speak to one of our chattel mortgage brokers by calling 1300 722 210 for a quote and to find out what loan structures you can use.

If you’re short on time, you can fill out a pre-approval form. With this information, we’ll be able to get in touch with the info you need to get the right car loan for your business.

Quick Quote

Select a loan type from the icons below

By clicking Get My Quote, I acknowledge and accept the Terms & Conditions.

We make finance a Positive experience