A chattel mortgage is a business transaction, and depreciation benefits reserved for business customers to claim back at tax time. That gives it significant financial advantages over taking out a consumer car loan. We have discussed why a chattel mortgage car loan is the best option for your business.
What Is A Chattel Mortgage Car Loan
The term chattel is a legal term that essentially means private possession of some form of property. The chattel holds significant monetary value and becomes the security for the lender. The term mortgage is the lender putting an interest against the chattel.
How Is a Chattel Mortgage Car Loan Different From Other Loans
Chattel Mortgages are a well-known car and equipment finance structure in Australia. It is by far our most common loan kind for business clients. The main similarities between a consumer car loan and a chattel mortgage car loan is that the financier secures the loan using the vehicle intended for purchase. The buyer takes ownership of the car upon purchase – once the loans payments have paid in full. A chattel mortgage car loan is typically valid for business purchases and the interest rates can be far lower than personal and consumer loans. The products can be flexible depending on your situation, and the interest portion of the finance repayments may be considered a tax deduction.
An employee, or a sole trader, a partnership, or a company can apply for a chattel mortgage car loan if the car is for majority business use.
Why Choose Us
Most lenders are ready to finance 100% of the value of the car. Meaning the business doesn’t have to spend its capital or tie up cash flow. The chattel interest rates get fixed for the duration of the loan. Repayment terms running between one and seven years. We have the experience and the technology to help businesses get the funding they need for their vehicles at competitive rates.
We help put businesses in constant contact with a dedicated loan consultant who helps them through the approval process and for the life of the loan. Contact one of our expert brokers today to find out more information on a chattel mortgage car loan. Call us on 1300 18 18 83