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Chattel Mortgage

A chattel mortgage allows different types of businesses ranging from sole traders to large corporations to secure a loan against a motor vehicle. To qualify for this type of loan, the vehicle you are purchasing needs to be used for business purposes at least 50% of the time.

A chattel mortgage enables the payment of your business vehicle to be spread over its lifetime. Rather than outlaying the full value of the car on the purchase date, your payments are structured to defer the cash outflow of your purchase into the future.

Loan Structure

The term of a chattel mortgage can be tailored to your requirements but is usually between 1 to 7 years. Repayments on a chattel mortgage are usually monthly but again, can be structured to accommodate your business needs.

Additional Benefits

Depending on your business structure, the interest component of your repayments can be claimed as a tax deduction against your business. You may also be able to claim the GST component of the purchase as a tax deduction – consult your accountant or tax adviser for further information about the tax benefits of a chattel mortgage.

This process was seamless, from start to finish. It was so simple ad made getting our business vehicle so easy.

Mel – Pavlovic Family Investments, Kellyville NSW

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