Motor Vehicle Loans
Chattel Mortgage is the most common type of vehicle loan for business use
It is a commercial finance product where the customer takes ownership of the asset (chattel) at the time of purchase.
Under a Chattel Mortgage, the financier advances funds to the customer to purchase an asset, and the customer takes ownership of the asset at the time of purchase.
With Chattel Mortgage the customer can claim the interest charges on the contract and depreciation (in the case of vehicles up to the depreciation limit*) as a tax deduction.
Chattel Mortgage
This is the most common type of Vehicle loan for business use!
A Chattel Mortgage is a commercial finance product where the customer takes ownership of the asset (chattel) at the time of purchase.
Under a Chattel Mortgage the financier advances funds to the customer to purchase an asset, and the customer takes ownership of the asset (chattel) at the time of purchase.
With Chattel Mortgage the customer can claim the interest charges on the contract and depreciation (in the case of vehicles up to the depreciation limit*) as a tax deduction.
The Benefits of a Chattel Mortgage
Flexible Finance
You can finance 100% of the vehicle purchase price, or place a deposit.
Protected From Fluctuations
The interest rate is fixed, therefore you are protected from interest rate fluctuations during the term of the loan.
Repay Anytime
You can repay the loan at any time during the term of the agreement (subject to break costs).
No GST
You don’t pay GST on the loan repayments or any balloon payment.
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Potentially Tax Deductible
If you use your car to generate assessable income, the interest component of the repayments and the depreciation on the car may be tax deductible.
Bridgecoast Finance has other Vehicle Loan options
Finance Lease
This type of finance gives you the option to rent a vehicle for an agreed period of time and at the end of the loan term you have the option to upgrade.
