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Differing from a standard motor vehicle loan, chattel finance is a loan product developed specifically for commercial motor vehicle purchases.
How Does Chattel Finance Work?
Under this type of arrangement, the financier advances funds to you as the customer to purchase and take ownership of the vehicle. The vehicle effectively becomes the property of you or your business at this time.
The financier then places a mortgage on your vehicle as security against the loan by registering the asset on the PPSR.
Working much the same as any other loan, you then repay the loan on a monthly, weekly, fortnightly or otherwise agreed basis.
What Are the Benefits of Chattel Finance?
- Upfront tax incentives, as well as applicable claims throughout the life of the loan
- GST benefits for registered customers by claiming the GST component of the vehicle cost as an input credit on your BAS
- Lower interest rates as the finance is secured against the vehicle
- Flexible loan terms available
- Option to offset regular repayments with a residual or “balloon” payment
If you would like to discuss the specific vehicle finance requirements for you and your business, contact Finance Mutual Australia today on (08) 8216 4111 or complete our enquiry form to get started.