A Chattel Mortgage is a commercial car finance product used by Companies, Trusts, Sole Traders, Partnerships and ABN holders.
By financing your vehicle by the way of a Chattel Mortgage, you will attain immediate ownership of the vehicle. If used for business purposes, you may be eligible for tax deductions associated with the asset depreciation and interest proportionate to the percentage of business use. That is interest on the loan repayments and depreciation up to the luxury car tax threshold or depreciation limit of $63,184. (Please consult your accountant for financial advice)
A Chattel Mortgage also allows the customer to claim an input tax credit for the GST component of the purchase price, provided that the customer is registered for GST. Where the customer is using the accrual accounting method, the input tax credit may be claimed on the next Business Activity Statement (BAS). If the cash method of accounting is used, the GST can be claimed as an input tax credit over the term of the contract.
- Flexible payment methods
- Depreciation and interest tax deductible
- Claimable input tax credit for the GST component of purchase price
- Option to set residual payout figure at the end of the lease term
- Competitive interest rates