1300 Car Finance

Chattel Mortgage

Chattel Mortgage Finance is a flexible commercial car finance designed for sole traders, partnerships and companies that are looking to finance a vehicle used primarily for business purposes. Your business owns the vehicle and the financier takes a mortgage or security over that vehicle so it remains an asset of your business.

What is Chattel Mortgage Finance?

Chattel Mortgage Finance is a type of finance used by businesses for the purpose of purchasing a new or used vehicle. Chattel Mortgage Finance is essentially a Mortgage over the vehicle to be financed in return for a fixed monthly repayment over a set period of time.

The Chattel Mortgage Finance allows businesses to claim the full input tax credit from GST incurred expenses immediately (next BAS statement). Always seek advice from your accountant in regard to the accounting of GST.

Who is eligible for Chattel Mortgage Finance?

A requirement of a Chattel Mortgage Finance is that it is to be used predominately for business use; therefore the product is extended to Companies, Trusts, Sole Traders, Partnerships and ABN holders.

Benefits of Chattel Mortgage Finance?

• The security of a fixed interest rate for the term of the finance.
• A choice of finance terms ranging from 1 - 5 years.
• Interest is calculated on the outstanding principal balance, so any additional payments you make reduce the total interest payable.
• The ability for GST registered customers to claim part or full Input Tax Credit (ITC) for any GST on the purchase of the vehicle.
• The option to reduce monthly payments with a balloon payment at the end of the term, freeing up cash flow for your business.

Chattel Mortgage Finance and Tax

With Chattel Mortgage Finance GST is contained in the purchase price of the vehicle, but does not apply on the monthly repayments or residual/balloon (final installment) on the contract.

Business customers who are registered for GST and account for their business using the cash method of accounting can claim back the GST as soon as they lodge their next Business Activity Statement (BAS).

Under Chattel Mortgage Finance you may also claim back the interest component of the fiannce and depreciation on the vehicle up to the value of $57,180.00. This amount is the maximum allowed by the ATO. In addition running costs of the vehicle may also be claimed.

Need a car finance quote?

For more information or if you have any questions about Chattel Mortgage Finance, just call 1300 Car Finance thats 1300 227 346 and speak to a qualified finance consultant or why not complete our friendly online finance enquiry form and a experienced finance consultant will contact you shortly.