What is a Chattel Mortgage
Written on the 14 March 2021 by Nathan Drew, Fox Finance Group
What is a chattel mortgage?
You say potato, we say potato. A chattel mortgage is a very similar loan product to a normal secured car loan, with the main difference being that the asset that is being purchased is going to be used primarily for business use.
For example, if you're a tradie builder and need a ute for moving your materials and tools from site to site, you may qualify for a chattel mortgage.*
Need help comparing and finding the best chattel mortgage? That's what we do, which includes us doing all of the heavy lifting for you. Our pre-approval process costs you nothing and commits you to nothing, you make the final decisions on which chattel mortgage is right for you. Our role is to provide you with the best chattel mortgage loan options available on the market so you can make an informed decision on which chattel mortage loan will work best for you and your business.
How does a chattel mortgage work?
Much like a secured car loan, the chosen lender approves your chattel mortgage loan up to an amount that enables you to go and purchase the vehicle you want. The lender takes a 'mortgage' over the vehicle as security for the purpose of the loan. Once the contract is completed, I.E. you finish making all of your loan repayments, you'll own the vehicle outright and any security that the lender previously had listed against the vehicle will be lifted, giving you clear title.
A couple of other FAQs we hear regularly
Q. Can I claim GST on the purchase? A. In some cases, a customer who is registered for GST may claim the GST contained in the vehicle price as an input credit on their next Business Activity Statement (BAS).*
Q. Are my repayments tax deductable? A. Tax deductions may be available when the vehicle is used for business purposes, but it is always best to check with a qualified accountant before making any decisions so they can provide you with qualified advice based on your individual situation.
We hope that this information was helpful. If you have further questions, please reach out to our team of Chattel Mortgage Lending Specialists for more information on 1300 665 906.
Disclaimer: * Information contained in this short article is not financial advice and as such has not taken into account your personal or business circumstances. It is always best to check with a qualified accountant before making any decisions about a Chattel Mortgage so that they can provide you with qualified advice based on your individual situation.
Author: Nathan Drew, Fox Finance Group
About: Managing Director - Fox Finance GroupConnect via: LinkedIn