A Chattel Mortgage is a finance option where you become the owner of the vehicle when you take delivery of it, while the finance company secures a charge over the asset (the vehicle) as security.
This is an attractive funding option for sole proprietors, partnerships and companies that use the 'cash'
method of accounting for the Goods and Services Tax (GST). Under the cash method, the GST component of the
acquisition price of the motor vehicle (or other asset) can be claimed back on the entity's next Business Activity
Statement, rather than claiming the GST over the term of the finance contract.
- It is a flexible as you can choose to finance the total purchase price, or use a deposit or trade-in to reduce the loan repayments.
- You may claim a tax deduction for the depreciation on the motor vehicle as well as the interest component of the loan repayments.
- GST is not payable on the loan repayments.
- The repayments are fixed over the term of the loan.
- The term of the loan ranges from 12 months to 60 months.
- You can structure the repayments with or without a balloon payment at the end of the term of the loan to tailor your repayments to suit your cash flow.
To apply for or enquire about a Chattel Mortgage please fill out our online finance enquiry form and one of our customer service representatives will be in contact with you or call 1300 3 FLEET (1300 335 338) today!
< Back
Consumer Car Loan
Novated Lease
Corporate Hire Purchase
Finance Lease
Operating Lease
All applications for credit are subject to normal credit approval criteria.
As we are not tax advisors always seek independent advice from your Accountant.
