Are you a business owner and looking to buy a new car?

Mark Fitzpatrick | June 14, 2018

Whether it is a motor vehicle, mini bus or truck a business owner has to make a decision on how they are going to make the purchase.

More often than not they choose a Chattel Mortgage. Here are a couple of points why.

* A chattel mortgage may give you significant financial advantages over taking out a consumer car loan. If you are looking to buy a vehicle used primarily for business (50% or more) a chattel mortgage may be your best option. In most cases a consumer loan must be taken out by an individual, not a company. 

* Why chattel mortgages differ from consumer car loans is that your financier will secure the loan using the “chattel,” or vehicle you intend to purchase. The buyer takes ownership of the car upon purchase and once you pay the loan off, the mortgage is removed – much like a “traditional” mortgage. 

* Since a chattel mortgage is a business transaction, you may be able to claim depreciation and other benefits reserved for business customers. 

* Lower interest rates compared to consumer loans Terms can range from 12 to 60 months. You may also opt for a residual value payment, also referred to as a balloon payment, at a nominated time. 

* Instantly claim the GST

* You can also claim depreciation and interest with certain types of chattel mortgages. You may be eligible to claim back the full input tax credit

If you’d like to know more give me a call on 0410 442936 or simply ask me a question