What’s a Chattel Mortgage?
Need a new car for work? Whether you are looking to buy a whole new fleet, or one company car, we can help save time and money when it comes to finding perfect business car loans such as a chattel mortgage which is the most common business car loan applied today.
We finance all vehicle makes and models for a wide variety of purposes. Rest assured that we will work to secure the best business car loans for you – just sit back and let us provide the right finance solution for your business needs.
With so many different products, chattel mortgage, hire purchase, novated lease, just to name a few, it is easy to become overwhelmed. We get that each business has unique transport needs and this is why we offer a variety of car finance options. We understand that business owners have enough on their plate without having to navigate the intricacies of financing and securing business cars. You can trust us to simplify the complexities and accelerate the process so we can get your employees to where they need to go and you can focus on growing your business.
A chattel mortgage (also known as an equipment loan or a bill of sale) is a loan agreement where the funds are borrowed to purchase equipment or vehicles for commercial purposes. In a chattel mortgage, the equipment is owned by the borrower, and a charge is taken over the financed goods.
While chattel mortgages offer great flexibility, lower interest rates and other economic benefits, they do not come under the National Consumer Credit Protection Act (NCCPA). This means that you may have less power as a customer when disputing unclear terms. You may also come across some chattel mortgage lenders who do not conduct enough credit checks and have you end up taking up a loan that is hard to pay back.
Our position in the industry as experienced financial specialists gives us negotiating power to eliminate these potential risks. We take measures to ensure that you are always financially secure in whatever loan you choose.
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A hire purchase is an agreement in which during the hire period, the financier owns the asset and you are required to pay regular installments. The ownership of the asset is automatically passed to you once the final payment is made.
A novated lease provides the benefit of your monthly repayment being made from your pre-taxed income. It entails an agreement between an employee, their employer, and the finance company. A novation agreement is entered into by all three parties, and responsibility for the lease rental commitment is transferred to the employer during their employment with the company. If the employee leaves the company, the novation agreement is terminated and the ongoing responsibility for the lease returns to the employee.
An operating license (also known as a rental) is an arrangement for business car financing where the financier retains the title and the asset is rented to the borrower, for an agreed term and rental amount.
Can I use my personal car for work?
Did you know that business car loan interest rates are typically lower than that of secured car loans? If you are using your personal car for work purposes, you could qualify for a business car loan. Whether you use your car to drive to client meetings or travel to worksites, we can help you get the best interest rate for your vehicle financing.
We have the right combination of knowledge, experience, and passion for what we do to point you in the right direction. Speak to one of our friendly finance consultants today to learn more about business car financing and chattel mortgages and to find the best financing option to suit your needs.