A chattel mortgage is designed for business purposes only and often used to purchase a car enabling more tax benefits. Under a chattel mortgage the finance company lends the money to the customer to purchase a car.
Chattel Mortgage is a commercial finance product where by the finance company lends money to the customer to purchase a car who then makes regular monthly repayments.
The finance company takes a mortgage over the car but you own the car from time of purchase. The finance company takes an Asic- registered fixed and floating charge over the car which becomes security over the loan. Once the loan finishes and any residual (balloon) is paid in full then the finance company removes the charge over the vehicle. It’s important to ensure the finance company removes this security at time of finalising or payout of the loan.
What are Chattel Mortgage features and benefits?