CHATTEL MORTGAGE & CAR FINANCE
What is a chattel mortgage?
A chattel mortgage is a type of loan structure available for businesses purpose use. The types of business that may use are varied - ranging from sole traders to incorporated entities and is generally a secured loan on a motor vehicle. In Australia this is for business use purposes -so 50% or of the use of the vehicle is required to be for business purposes Repayments can be fortnightly or weekly but are mainly monthly.
Chattel Mortgage Origin
The word chattel comes from a traditional and old English word for an object that’s capable of being moved, as distinct from other items of property that cant be moved, such as land or fixed items. The word mortgage refers to the fact that the chattel is taken as security for the loan, in a similar way to a mortgage over property.
Operation of a Chattel Mortgage
A chattel mortgage enables the payment of your business vehicle to be spread over some or all of its useful life. The advantage of a chattel mortgage, like most loans is that rather than you or your business outlaying the full value of the car on the purchase date, payments are structured, deferring the cash outflow of your purchase into the future. Payment smoothing and a source of credit are the two main benefits of this product. The term of the loan can be tailored to your requirements. Insta Auto can arrange chattel mortgages for cars with no exit fees and no early termination fees.
Chattel Mortgage Repayment
Try our chattel mortgage calculator
Who Uses a Chattel Mortgage
- Businesses looking to renew or replace their existing vehicle or fleet of vehicles.
- Sole traders with an ABN looking to purchase a car or other vehicle.
- Applicants with good credit history, as such a loan is able to be obtained with minimal documentation.
Advantages of a Chattel Mortgage
- Own the vehicle from the start of the agreement
- Defer payment to the future, and start generating income with your vehicle from the application date.
- Access to possible tax benefits benefits where the car is used to generate income *
- Possibility to have get finance with no deposit and some approved customers and get 100% finance.
- New, used and privately sold vehicles can be financed.
- Loans from $5000-$1,500,000+
- Same day approvals can be obtained through a number of different lenders
Tax implications
Depending on your business structure, the interest component of repayments in addition to GST may be able to be claimed as a deduction - consult your accountant or tax adviser for further information about tax benefits.
Apply for Chattel Mortgage
Insta Auto partners with a number of lenders throughout Australia who can have your car loan approved Australia wide!