Chattel Mortgage Car Loans

What is a chattel mortgage car loans?

A chattel mortgage is a type of business loan. This type of loan allows different types of businesses to secure a loan against a motor vehicle.  The 'chattel' is the asset or car being purchased and the 'mortgage' is the loan that uses the asset as security whilst regular loan repayments are made.  To qualify for a chattel mortgage car loan, 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.

What are the benefits of chattel mortgage car loans?

  • 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.

What are the types of chattel mortgage car loans?

There are 3 types of chattel mortgage car loans - 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.

How to apply for a chattel mortgage car loan?

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.

Chattel Mortgage | Business Car Loans

Useful Link | ATO Guide to Luxury Car Tax

This link takes you to the ATO site - Who needs to pay LCT and who can defer paying it?

John Shanahan
John Shanahan
3 May 2023
We worked with Jason to arrange finance for our Austrack van. Jason's service, knowledge and understanding was fantastic. Great outcome and can't wait to get into our van! Thanks Jase.
Robbie Amhaz
Robbie Amhaz
10 March 2023
I Have been with AAA for many years now and they have always been my go too broker for personal loans. Peter & Jason always go the extra mile for me as a client and their rates & fees are competitive. We recently purchased a brand-new car and AAA got us the loan we wanted and at the right interest rate. Excellent service and industry knowledge. Thanks Again Robbie Amhaz
Paul Mansell
Paul Mansell
18 August 2022
These guys go above and beyond. I would recommend them to anyone.
Wayne Jones
Wayne Jones
27 July 2022
Warwick provided a very simple platform to execute our business with him,nothing was a issue and he was very prompt getting back to us or returning calls,highly recommend AAA Finance
11 July 2022
The team at AAA made the finance application process incredibly smooth and stress-free, handling all of the otherwise difficult paperwork with the lender and seller. We have used them multiple times now and have never been disappointed!
Lyndon D
Lyndon D
9 December 2021
We had Jaime as our broker and wow! She did such a great job. 10/10 customer service! Answered every question, gave us all the advice we needed. Can’t fault anything at all. Thank you Jaime !
Bianca Bloomfield
Bianca Bloomfield
9 November 2021
These guys were fantastic ! - Jaime was prompt, professional and kept me in the loop while the finance boxs were ticked in the background. This was all done very quickly and they were super competitive in the market, which was awesome, when there was additional requirements she was straight on the phone-Highly recommend !!
Larna Kerswell
Larna Kerswell
14 October 2021
Warwick at AAA Finance was so easy and great to deal with. He was patient and helpful with us every step of the way. We would recommend them to anyone looking around for finance. Thank you so mauch Warwick and AAA Finance.
Donna Joy
Donna Joy
23 September 2021
I was very happy with the excellent service given by Sam Sharpe. He was helpful, polite and easy to understand. Thanks Sam 😃
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