Chattel Mortgage Perth
Whether you wish to start a small business in Perth or expand an existing one, getting the funds you need for new cars or equipment doesn’t have to be difficult. At Auto Car Loans our expert finance brokers have access to over 50 bank and non-bank lenders. We can assess your situation and match you with the lender that offers the most competitive rate and the most streamlined approval pathway.
For Perth companies, sole traders, and employees using their car or equipment for predominant business use, a chattel mortgage is the most popular finance structure.
What is a Chattel Mortgage?
A chattel mortgage is a secured loan in which you get finance for movable property such as vehicles, yellow goods or heavy equipment, with the asset used as security.
In this case, the movable property is what is known as the chattel.
How does it Work?
Let’s say you run a supply store and need to add some delivery trucks to help you serve your clients better.
If you opt for a traditional loan, you will need to use your supply store as collateral for the loan before you receive the funds you need.
On the other hand, a chattel mortgage allows you to use the trucks you wish to purchase as security for the loan. The lender provides you with the funds for the trucks, and then takes a mortgage on them. Once you repay the entire amount, the trucks become completely yours.
Although the lender obtains a mortgage on the trucks, it does not limit your usage of the trucks in any way, and unconditional ownership of the trucks is transferred back to you once you make full repayment.
There are many benefits of a chattel mortgage compared to other finance structures.
Benefits of a Chattel Mortgage
Chattel mortgages are the most popular financing option with lots of business owners for several reasons, including:
- More Tax Relief
With a chattel mortgage, you could pay significantly less in taxes!
You should seek your own individualised tax advice, but there are common tax savings from a Chattel Mortgage when used by a company or sole trader:
- The Instant Asset Write Off allows most chattel mortgage borrowers to fully depreciate the cost of the car on their next annual company tax return (reducing the company’s profit and associated tax liability).
- GST registered entities can typically claim back the FULL GST amount on the car on the next BAS, often resulting in a GST input credit.
- Most businesses and individuals can claim the interest expense.
- Flexible Repayments
A chattel mortgage allows you to repay the loan in a structure that suits you.
You can add structured repayments during the loan term to suit seasonal ups and downs for your business. You can also choose to add a residual payment at the end of the loan term to lower your monthly repayments (you can typically refinance the residual payment under a new loan, sell the car, or just pay out the amount).
- Lower Interest Rate
Chattel mortgages come with lower interest rates than other car and equipment loan products.
They’re far cheaper than unsecured loans like business loans, business cash flow funding and personal loans. And even compared to secured car loans that the public has access to, Chattel Mortgages typically have the lowest interest rates. That means more savings for you and your business.
- Tailored to Your Needs
We try to understand your individual and business needs and then match you with a lender that meets those specific needs while offering competitive rates and an easy approval pathway.
- Determining Eligibility
We encourage you to apply with us by calling us on 1300 301 051 or visiting the online application page at https://autocarloans.com.au/apply.
The process is straightforward and simple. Once we verify your application and approve it, you’ll have access to our top lenders ready to finance your vehicle purchase. If everything goes right, you could drive away in your new vehicle on the same day. A pre-approval doesn’t cost you anything or commit you to anything, but it does allow you to shop with confidence that you’ll be able to fund your new asset with a competitive interest rate.
- Why Choose Auto Car Loans?
At Auto car Loans, we have a network of leading lenders ready to provide business owners in Perth with the right chattel mortgages they need to move their businesses forward. Our expert finance brokers and customer-centric service make us the favourite choice with lots of business owners in the region.
Need funds immediately? Then we are your best bet. Over the years, we have put a system in place that allows you to go from first phone call, to funded asset, within the same business day!
How You Can Get a Chattel Mortgage
We understand how important it is for you to quickly access the funds you need. Therefore, at Auto Car Loans we’ve tried to make the process as fast and easy as possible.
Simply pick up the phone and call 1300 301 051 to speak with one of our expert consultants. They will only ask a few questions to get an idea of the type of chattel mortgage you need.
Once we assess your needs and your individual financial situation we’ll be able to match you with the right lender from our panel of over 50 funders.
Contact Us Today
A chattel mortgage could help you get your business moving by acquiring that new car or piece of equipment! Our friendly and professional brokers will be happy to provide answers to any questions you have and give you all the assistance you need.
Are you ready to get started with an obligation free assessment and pre-approval? Then, get on the phone and call 1 300 301 051 right away.