A chattel mortgage is a type of finance facility used for the purpose of purchasing vehicles or other business plant equipment.
With a chattel mortgage the goods are owned by you, however the title of ownership is retained by the financier until final payment is received.
You can claim the allowable depreciation and interest as a tax deduction. GST does not apply to the monthly payments, however the GST on the purchase is recoverable at the time of purchase.
With a chattel mortgage you are able to finance the full purchase price of the goods, include an upfront deposit or trade-in.
You may choose to structure your payments to clear the debt in full over the term of your agreement or nominate to have a ballon/residual value payable at the end of the chattel mortgage term.
If you would like to start a discussion on arranging a chattel mortgage or car finance in general please call us on 1300 887 967 or submit your online enquiry here.
