Business chattel mortgage car loans
A chattel mortgage allows different types of businesses to secure a loan against a motor vehicle. A chattel is the asset or car being purchased and a mortgage is the loan that uses the asset as security whilst regular loan repayments are made. To qualify for a chattel mortgage, the vehicle must be used for a minimum of 50% business use. Businesses ranging from sole traders, partnerships and trusts to large corporations can use a chattel mortgage as a business car loan option. There are a number of business car loan options available to self employed individuals and small business owners that negate the need for payslips. In some instances no paperwork is required to secure a loan.
Benefits of a chattel mortgage
- Possible to have a no deposit car loan and get 100% finance**
- Low establishment fees and monthly fees, no pay-out penalties
- Fixed interest rate
- Monthly fixed repayment schedule.
- GST registered customers can claim the GST included in the vehicle purchase price.
- No GST is charged on the monthly chattel mortgage payment.
- Access to possible tax benefits where the car is used to generate income. (check with your accountant)
- You own the vehicle from the start of the agreement.
- Balloon payments on the business car loan are available.
- Business car loans from $5,000 up to $250,000.
- Car finance terms from 1 to 5 years.
Types of chattel mortgage
There are 3 types of chattel mortgage - no doc car loan, low doc car loan and full doc car loan. The main difference between these business car loan options is the amount of financial paperwork required to secure finance.
A no doc car loan is suitable for established businesses that have been operating for a number of years with the owners being asset backed.
Low doc car loans are a popular choice for business owners. Although a current business tax return is not required, interim financials such as BAS, profit and loss and/or bank statements, may be required to substantiate income.
Full doc car loans require up-to-date financials to secure finance.
How can AAA Finance help?
Every business has a unique situation and every lender has different qualifying criteria. AAA Finance are here to help you navigate the complexities of chattel mortgage finance. Our team has a wealth of experience, knowledge and know how with access to over 40 lenders. Let the AAA finance experts cut through the red tape and finance jargon to get you the most competitive business car loan to suit your needs.
Use our car loan calculator with balloon payment option to determine if your new purchase will fit within budget. Simply input the rate, term and loan amount to calculate a monthly loan repayment. Balloon payments are a popular option for business owners.
Apply for a chattel mortgage
Call one of our friendly and experienced car loan experts today on (07) 5493 1222 to discuss your next business car loan.
Alternatively you can get a pre-approved car loan. A pre-approval gives you piece of mind that your funds are approved before you commence looking for the perfect business car.
AAA Finance and Insurance offers a range of insurance products. Comprehensive car insurance is a requirement of all car loan approvals. Tyre and rim insurance and extended warranties are additional insurances to protect your asset. Loan protection insurance and gap or shortfall insurance protect your loan and your credit rating.
Useful Link | ATO Guide to tax concessions for small business.
This link takes you to the ATO site - Tax Concessions: What's new for small business?