Truck Chattel Mortgage
Truck Chattel MortgageA Chattel Mortgage over a Truck is a commercial finance option under which a financier loans money to a business to purchase a truck or commercial vehicle (chattel), and then secures the loan with a mortgage over the vehicle. Under a Chattel Mortgage the financier advances funds to the customer to purchase a vehicle, and the customer takes ownership of the vehicle (chattel) at the time of purchase.
The financier then takes a “mortgage” over the vehicle as security for the loan. Once the contract is completed, the charge is removed giving the customer clear title to the vehicle.
The Benefits of a Chattel Mortgage are ;
1. Flexible contract terms ranging from two to five years.
2. Costs are known in advance
3. A residual value (balloon) can be applied to the contract enabling the monthly repayments to be tailored to a budget
4. Fixed interest rates
5. Monthly repayments are fixed
6. The finance is secured against the vehicle, allowing lower interest rates
7. Deposit (either cash or trade-in) may be used
8. A tax deduction is available when the vehicle is used for business purposes (refer to your accountant on this topic)
9. A customer who is registered for GST can claim the GST contained in the vehicle price as an input credit on their next Business Activity Statement (BAS)
10. No GST is charged on the monthly repayment or the contract balloon amount
Contact us now, so that we can help you get the finance you deserve.