A popular commercial finance product is a Chattel Mortgage where you take ownership of the car at the time of purchase. Just like a home mortgage the bank or finance company takes a mortgage over the car as security for the loan and they register an interest in the vehicle.
Is a Chattel Mortgage Right for You ?
If you are a company or sole trader you may gain a GST benefit on the purchase of the car. If you wish to put a deposit into the car or trade-in another car then a Chattel Mortgage will accommodate this. Your accountant will be up to date with the tax implications of a Chattel Mortgage.
Benefits of a Chattel Mortgage
- Fixed interest rate for the term of the contract
- Loan terms of 1 to 5 years
- A deposit or trade-in can be used
- A balloon can be applied to lower your repayments
- If used for business payments may be tax deductible
- No GST on the monthly repayments and balloon
Although Chattel Mortgages are more cost effective that Commercial Hire Purchase (CHP) Agreements we can also assist you with a CHP if that is a better solution for you.