Frequently asked questions

What are a Chattel Mortgage's features and benefits?

The benefits of a Chattel Mortgage include:

  • Flexible contract terms ranging from 36 to 60 months (three to five years)
  • A residual value (balloon) can be applied to the contract enabling the monthly repayments to be tailored to suit your budget.
  • Fixed interest rates
  • Monthly repayments are fixed and may be payable in advance or in arrears
  • Deposit (unlike with Leases) may be used
  • Customer may be able to claim depreciation, running costs and interest paid, against your business income at the percentage that the business use applies. 
  • GST is claimable in one lump sum (up to the luxury car tax limit) for Businesses with an ABN & registered for GST who are either cash accounting or accrual accounting. 
  • No GST is charged on the monthly repayment or the contract balloon amount
  • The finance is secured against the vehicle, allowing lower interest rates
About Chattel Mortgages