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About Chattel Mortgages

CHATTEL MORTGAGE 233x150

Chattel Mortgages & What You Need To Know!

A Chattel Mortgage is a commercial finance product where the customer takes ownership of the vehicle (chattel) at the time of purchase.
How does a Chattel Mortgage Work?

Under a Chattel Mortgage, the financier advances funds to the customer to purchase a vehicle, and the customer takes ownership of the vehicle (chattel) at the time of purchase. The financier then takes a "mortgage" over the vehicle as security for the loan, by registering their interest over it with the PPSR (personal properties security register). Once the contract is completed, the security interest is removed giving the customer clear title to the vehicle

Benefits of a Chattel Mortgage

Flexible contract terms ranging from 1 to 5 years
A balloon value can be applied to the contract enabling the monthly repayments to be tailored to your budget
Fixed interest rates for the loan term
Monthly repayments are also fixed
Costs are known in advance
Deposit (either cash or trade-in) may be used
A tax deduction is available when the vehicle is used for business purposes
A customer who is registered for GST can claim the GST contained in the vehicle price upfront as an input credit on their next Business Activity Statement (BAS)
No GST is charged on the monthly repayment or the contract balloon amount
The finance is secured against the vehicle, providing lower interest rates


Who does a Chattel Mortgage suit?
A Chattel Mortgage is suitable for those companies, partnerships and sole traders who use the cash method of accounting (they record business income and expenses as and when they occur) as it allows them to claim the GST in the vehicle's price up-front.

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Address

 Auto Link Finance
 3/4 Kilmarnock Court
Hoppers Crossing Vic 3029

03 9368 3298
enquiries@autolinkfinance.com.au
Monday-Friday: 9:00 am- 5:30 pm

 Saturday: By Appointment Only

About us

Auto Link Finance is a well-established financial intermediary (credit assistance provider) family business with over 30 years’ experience in the finance industry, providing everyday Australians with a full range of finance and insurance products.