What are the benefits of a chattel mortgage?
• A chattel mortgage offers tax benefits for businesses that use the cash accounting method. • The interest rate on a chattel mortgage is fixed so you never need to worry about rate rises. • A chattel mortgage is flexible – you set your deposit, repayment and balloon payments to suit your cashflow. • A chattel mortgage can be repaid before the end of the term. • Subject to the lenders’ approval, 100% of the purchase price of a car can be financed using a chattel mortgage.
The Chattel Mortgage has quite a number of benefits for you including tax deductions and not having to pay any GST on the repayments. It’s also p[pretty easy to structure your repayment terms – like putting in a balloon or residual payment and adjusting your payment amounts so that they are fixed every month – predictability will help you immensely when you’re trying to manage your budget for your new car! In addition, interest rates are pretty stable once you’ve signed your contract for a chattel mortgage too!
