Chattel Mortgage
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Chattel Mortgage

Under a chattel mortgage the finance provider funds the purchase of the motor vehicle. The financier takes a mortgage over the vehicle as security for the car loan.

The customer takes ownership of the motor vehicle at the time of purchase and continues to make monthly Chattel Mortgage payments for the motor vehicle. Once the contract is completed, the mortgage is removed offering the customer clear title to the motor vehicle.

The chattel mortgage can come with or without a balloon payment. Balloon is the amount that will need to be paid to the finance provider at the end of a chattel mortgage in order to reduce ongoing monthly repayments.

Having a balloon put into your agreement makes the monthly lease payments cheaper and much more affordable.

Why Consider a Chattel Mortgage?

  • Low establishment fees and monthly fees, no payout penalties
  • Flexible Contract Period from 1 to 5 years
  • ax Deductible if used for business
  • Fixed rates for duration of chattel mortgage agreement stable repayments
  • Lower interest rates due to the vehicle lease being secured against the vehicle
  • No GST is charged on the monthly chattel mortgage payment
  • Customers registered for GST can claim the GST that is included in the vehicle purchase price
  • Subject to credit approval, we can finance 100% of the purchase price
  • A balloon payment will lower your regular monthly payments. This not only improves your cash flow, but makes your Chattel Mortgage more affordable

A Chattel Mortgage is best suited to someone who intends to use the motor vehicle predominately for business purposes - therefore this car financing product is frequently used by companies, trusts, sole traders, partnerships and ABN holders



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