Chattel Mortgage Canberra
Chattel mortgages are currently the most popular car and equipment finance structure among businesses in Canberra. Chattel mortgages are a valuable option for companies, sole traders, and also employees using their car or equipment for majority business use.
Here at Auto Car Loans, with Chattel Mortgages we help Canberra businesses get funding for their vehicle or equipment without the pressure to use their business cash flow upfront. With a panel of over 50 lenders, we offer business customers leading interest rates and multiple approval pathways so they can focus on growing their businesses.
Our expert finance consultants can pair you with the right lender who meets your personal and business needs. And in no time, you’ll be driving away in your new vehicle.
You can then make fixed monthly repayments over a specified period (most commonly five years). With this, you’ll not have to worry about the upfront cost of the car as our lender will be providing funds for the purchase, and you’ll have enough time to offset the loan.
What is a Chattel Mortgage?
A chattel mortgage is a type of finance agreement that is used for the purchase of productive assets, such as vehicles or pieces of equipment, known as the chattel. This type of loan arrangement is for business purposes only, which means you can only take this loan to buy a vehicle or a piece of equipment primarily to run your business or which you use mostly in the course of your employment. While you do not have to provide additional security for the loan, the purchased asset is used as security.
Under a chattel mortgage agreement, the purchased asset becomes entirely yours without lien from the lender when you have fully repaid the loan and meet all the terms.
So, if you’re looking for a finance option for your business, a chattel mortgage might be a good option for you because of the many benefits that come with it. As a leading finance company in Australia, we at Auto Car Loans are committed to helping you get the best finance option for your business.
Benefits of a Chattel Mortgage
Below are some of the benefits you get to enjoy when using us to get your chattel mortgage in Canberra.
- Better interest rates: unlike unsecured loans, the interest rate for a chattel mortgage is usually better due to the property being guaranteed by the lender of the loan. Chattel mortgages also usually have better rates than secured loans available to the public/ consumer market.
- It provides a flexible structure for payment: you can make convenient repayment since the terms will be tailored to your individual and business needs. Seasonal businesses can make structured additional payments in the most cash flow positive months, for instance.
- Balloon payment: you can also opt for a lower repayment option via balloon/lump sum payment during the contract to reduce the monthly mortgage instalments.
- Tax savings: 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.
- Minimal paperwork: it’s a straightforward process and doesn’t require endless paperwork. You can apply online from anywhere and many lender have low doc options which make the process quick and easy.
You can qualify for a chattel mortgage as an individual employee, sole trader or business if the vehicle or asset you want to finance will be used primarily for business or work purposes (that is, you must use the vehicle to run your business over 50% of the time).
Here at Auto Car Loans, we offer a straightforward process to determine if you’re eligible, and if you qualify, we’ll pair you with a suitable lender as fast as possible, saving you time and effort in looking for a lender. You only have to fill out our online application form at https://autocarloans.com.au/apply
. It takes only about 5 minutes to complete, and it's easy to understand and simple to fill. After this, our consultants will evaluate your application, and if you qualify, you will have access to top industry lenders.
Choosing a Sensible Path
The vast majority of businesses need vehicles to run their operations smoothly. The cars could be used to transport products and personnel from place to place, running errands, etc.
Getting a chattel mortgage does not have to be difficult or stressful if you use the right finance company. Here at Auto Car Loans, we aim to make the process as easy as possible. With a panel of over 50 lenders, we offer highly competitive rates and multiple approval pathways so you can purchase your vehicle in no time to help run your business.
Why Should You Choose Auto Car Loans?
We are the preferred option for many businesses in and around Canberra. We have helped thousands of business customers with chattel mortgage loans, and most become repeat clients.
Below are more reasons to choose us:
- Access to top lenders: we have a panel of leading loan providers who can always provide the finance you need for your new vehicle. So regardless of your business or individual needs, rest assured we can find a suitable option for you. Our expert brokers will help you achieve your business goals faster.
- Vast experience: Here at Auto Car Loans, we understand the ins-and-outs of this industry, knowing which lenders currently have the leading rates and the smoothest approval processes. We can provide you with chattel mortgage options that best suit your individual circumstances.
- Expert loan consultants: With a combined 50+ years experience in asset finance broking, we have resourceful, professional financial experts that can help you navigate the entire process and various options available so you can choose the one that is just right for your business needs.
- Huge savings: with us and our panel of 50+ lenders, you can enjoy significant savings that aren’t available at banks or car dealerships.
- Quick approvals: You can get approved for a chattel mortgage within hours. That means you could drive away in your car on the same day you applied for a loan with us.
- Avoid pay-out penalty risk: we help you mitigate your risks if anything changes in case you want to dispose of the car and pay out the loan early.
- Maximum satisfaction: our experienced team is always available to assist you and ensure you have a fantastic experience from start to finish.
Business owners in Canberra that have used our services in the past usually come back to us time and time again. Our customer service is one of the best available. We’ll listen attentively to your needs and stop at nothing to see that you get the best available outcome.
Contact us today on 1300 301 051
to find out how we can help you purchase your new business vehicle -without the hassle!