What are a Chattel Mortgage's features and benefits?
About Chattel Mortgages
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