Chattel Mortgage

What is a Chattel Mortgage?

A Chattel Mortgage is a commercial car finance product. The finance company lends money to the customer to purchase a car (Chattel) in return for the customer to make regular repayments. Once the customer has taken ownership of the car, the finance company then take’s a mortgage over the car as security for the loan.

Once the term of the loan has finished and any balloon (residual) amount is paid out the finance company removes the mortgage over the car giving the customer clear title over the car. The customer also has other options which include refinancing the balloon value or trading in the car and purchasing a new car.

Who is suited to a Chattel Mortgage?

Both Individuals and Business’s (including companies, trusts, partnerships) are eligible for a Chattel Mortgage as long as the car is predominately used for business purposes (income producing).

In general a Chattel Mortgage is best suited to a business that is registered for GST as the business may be able to claim the full GST component of the purchase price in their next BAS.

Features and Benefits of a Chattel Mortgage?

There are many benefits of a Chattel Mortgage:

  • Loans up to $100,000 with no tax returns needed – we do not verify the income stated in your application
  • Loan above $100,000 require tax returns
  • Purchase from a registered car dealer or via a private sale
  • Second hand cars accepted
  • Loan terms range from 24 – 60 months
  • Wide variety of Balloon values (residual) generally from 0% – 55%
  • Claim the GST component of the purchase price in your next BAS

Use our Corporate Car Buying Service and Save Big…

Did you know that we have access to a Corporate New Car Buying Service through one of Australia’s biggest investment banks. They buy thousands of cars every year and therefore demand a large discount on the RRP of a brand new car.

All of our clients that are purchasing new cars are advised to use this free service as the discounts and other benefits we can achieve for you are simply not achievable when shopping for a new car by yourself – this is an exclusive service that we give you access to when you finance your new car with us.

Other Benefits include:

    • The new car is delivered to your door with a full tank of fuel
    • Test drives can be arranged without visiting the dealership
    • Trade ins can be arranged without visiting the dealership
    • Other benefits are available but depend on the brand of the car chosen

 

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