As part of our portfolio of commercial car finance products, Jade Car Loans offers Chattel Mortgage as an extremely flexible, workable and effective car loan option for many businesses. Chattel Mortgage is the most popular type of loan for business vehicles as it suits many businesses from single, self-employed operators through to large corporations that implement a cash accounting method.
We will structure a Chattel Mortgage for the purchase of your vehicle specifically to suit your business requirements. As a broker, your business is our primary interest so we’re working to get you the best deal available.
Chattel Mortgage Car Finance: Key Features
- The lender takes a mortgage or security over the car, the chattel, while the borrower makes monthly repayments.
- The borrower, you, take ownership of the car from the time of purchase, the vehicle is registered in your name and you are responsible for all operating costs, maintenance, insurance and registration.
- When all payments, including any balloon, are finalised, the lender relinquishes the security/mortgage and full ownership is transferred to the borrower.
- Jade arranges all Car Chattel Mortgage deals based on our signature low car loans rates.
- The interest rate is fixed for the term of the loan.
- Monthly repayments can be set to suit your financial requirements and once set, are fixed for the term of the loan. We have the flexibility to vary the loan term to increase or reduce the monthly repayment to a level that suits you.
- Only the interest on monthly payments is tax deductible, not the full monthly payment.
- The term of the Chattel Mortgage is fixed and can be set from 2 years/24 months to 7 years/84 months.
- GST on the full purchase price of the car, not the full loan amount, can be claimed by the borrower on their next BAS if you are GST claimable
- As GST is claimed on purchase, GST does not apply to the monthly repayments or the interest. GST is charged on any fees and charges. When establishing a Chattel Mortgage, your Jade consultant in consultation with your accountant can advise the amount of GST to claim against each monthly payment.
- A balloon, payable after the final monthly payment is finalised, may be included.
- Depreciation on the vehicle is claimed in accordance with ATO guidelines.
Due to the popularity of Car Chattel Mortgage, most banks and finance companies offer this facility. But we offersadditional benefits when arranging your car finance. We are accredited with many lenders so we can review the deals from multiple lenders and present you with the cheapest deal with the best deals on interest rates.
If you have reasons for wanting to organise motor finance through your bank, your Jade consultant will negotiate the deal on your behalf. Saves you time and you get the additional benefit of our superior negotiating skills and industry expertise.
If purchasing a used vehicle from a dealer, private seller or auction your Jade consultant can assist with additional services include REVS, verifying ID and other matters relating to the purchase.
Speak with a Jade Consultant to discuss a Chattel Mortgage solution for your business vehicle. Call 1300 000 003