Chattel Mortgage Brisbane
A chattel mortgage is the most popular car finance structure for business-use vehicles. Chattel Mortgages are available to companies, sole traders, and employees using a car for predominant business use. They are a great way for businesses in Brisbane to finance their vehicles and equipment needed for operation, and at the same time reduce tax obligations. With a chattel mortgage, as a business owner, the vehicles belong to your business, and provide the security for the loan. This enables us at Auto Car Loans to create a competitive financing option that’s best suited to meet the needs of your business.
What is Chattel Mortgage?
A Chattel Mortgage refers to a loan to buy a vehicle or a piece of equipment that is then used as the loan security. It is sometimes referred to as an equipment loan.
As a rule of thumb, a chattel mortgage is used where the financed asset is used solely or mainly for commercial purposes. That is, the asset will be used for business more than 50 percent of the time. While chattel mortgage may fund several types of equipment, it is typically used to finance motor vehicles and trucks.
When you choose a chattel mortgage, you take ownership of the vehicle and use it as security. This can benefit you in several ways like lower interest rates and no payment for account keeping fees.
Why You Need A Chattel Mortgage
If you intend to buy a car, finance is one of the most significant factors you would have to consider. Unfortunately, many businesses in Brisbane can’t afford to pay the high sum of money needed to pay for the vehicle upfront. That is where we at Auto Car Loans come in. We match you with the right lender that will provide you with the necessary funds to purchase your vehicle so you can take ownership of it as fast as possible.
When it is time for you to acquaint yourself with the right choice in terms of your chattel mortgage, our finance consultant will be ready to provide all the assistance to help you make the right decision. We’ll pair you with a suitable Chattel Mortgage lender that’s right for you.
Benefits of Chattel Mortgage
A Chattel Mortgage for business use has benefits over typical consumer car loans. Some of the other benefits of chattel mortgages you can get from us at Auto Car Loans are:
- Interest rates start from rates which are significantly lower than rates for personal use car loans.
- Unlike a lease or loan, the chattel mortgage gives you ownership from the beginning.
- You should seek your own individualised tax advice on the below, but there are commonly available tax savings from a Chattel Mortgage when used by a company or sole trader:
- Most business borrowers are eligible for the Instant Asset Write Off so can fully depreciate the cost of the car on their next annual company tax return (reducing the reported income of the business on which you pay tax).
- Business borrowers registered for GST may be able to claim the car’s full GST amount back as an input tax credit on their next quarterly BAS even though the car wasn’t fully paid for by the business upfront.
- Most businesses and individuals may be able to claim interest expenses on their tax return.
- You may opt to pay the residual balloon at the end of the period. This gives the company the freedom to determine if you would like to keep your monthly expenses down during the loan term, to sell the car, refinance the balloon or simply pay it out at the end of the loan term.
Our rule is that the individual or business can qualify for chattel mortgage loans if the vehicle’s use is business-related over fifty percent of the time.
If you’re interested in getting a chattel mortgage, we encourage you to apply with us. Our process of determining eligibility is straightforward, and before long, we’ll match you with a lender that meets your exact business requirements.
We value your time, so we have a simple validation process that won’t waste your time. After you have filled the application form (https://autocarloans.com.au/apply
), which usually takes about 5 minutes, we will get back to you as soon as possible. If you qualify, we’ll give you access to a lender that’s suitable for your business needs.
Choosing a Sensible Path
A key factor for running a business is having a reliable vehicle. It serves as a true indicator of the quality of your service, your credibility, and the impact you create on your clients. Soon, you’ll realise that doing business is easier and you become more trusted by clients when you have a truck or a car that helps you promote your brand and deliver products or excellent services every time.
Why Auto Car Loans?
Auto Car Loans considers the needs of your business and then pairs you with a suitable lender. Here are a few qualities that differentiate us from the crowd:
- Here at Auto Car Loans, we specialise in Chattel Mortgages and offer one of the best lender panels available in the Brisbane area. We have successfully helped thousands of businesses with their finance solutions and we have the experience you can trust.
- Wide array of commercial lenders to choose from.
- Fast approval turnaround.
- Low doc options
- Multiple approval pathways for non-standard borrowing scenarios
- Products without pay-out penalties.
- Huge savings and affordable rates.
With our strong connections and wealth of experience, you can be sure that we will match you with a suitable lender in no time. We have expert consultants who will be on the ground to attend to you and to ensure that the process of financing your auto loans is as hassle-free as possible.
At Auto Car loans, we are customer-oriented and we are committed to identifying the loan that best suits you and getting you in the car you want, quickly and efficiently.
Want to get started with your chattel mortgage? Contact us today on 1300 301 051
to find out how we can help you get that new car, truck or equipment for your business!