Getting you approved with your chattel mortgage
Compare Australia’s top lenders with us and save.
Your chattel mortgage questions answered
We're accredited with a wide panel of lenders to give you a fair choice to compare.
A chattel mortgage is a business car or vehicle loan made up of the “chattel” (car) and “mortgage” (loan.) The chattel is the asset your business is financing. The mortgage is the loan product you must pay back. The bank or lender may repossess the vehicle in the event of default.
To apply for a chattel mortgage, you must be a registered Australian business (an ABN holder) intending to use the car for over 50% business use.
When a business takes out chattel mortgage, they take ownership of the vehicle (it becomes an asset on the balance sheet.) The financier ties the loan to the value of the vehicle. You pay off the loan in instalments until the mortgage is removed. A business can claim GST, depreciation and interest back on their BAS as a chattel mortgage is a business loan. Business can also structure chattel mortgages with residual value payments (balloon payments) and over 100% finance.
Chattel mortgages are flexible to business needs, and loan terms can range from 12 months to 5 years or beyond.
ecause a chattel mortgage is designed for businesses, you can claim a raft of tax benefits right from the get-go. Claim your GST paid on the chattel instantly on your next BAS statement. You can also claim interest paid, depreciation and in many cases, the Fuel Input Tax credit.
Did you know you can borrow more than 100% of your vehicle or “chattel” value under a chattel mortgage car finance? You can pay off extras such as insurance, car registration and maintenance from the one loan. Get the convenience of a loan that suits your business goals.
Businesses choose Essendon Finance because they’re savvy businesses. Essendon Finance helps entrepreneurs, small, medium and enterprise level businesses scale their chattel mortgages to maximise growth and minimise disruption to cash flow. It’s the Essendon Finance advantage!
Some businesses, especially in the tourism industry, work from season to season. Lenders have designed Chattel mortgages for business, and no business is the same. As such, they give business owners more flexibility to set up repayments that suit their particular method of operation. Some businesses opt for smaller repayments during off-season and ramp up repayments when sales are strongest. This gives businesses the added advantage of using their car without affecting their cash flow. That means more opportunity, greater peace of mind, and more growth in the long run.
Flexible chattel mortgage to suit your needs
We offer a complete range of car loan options to suit all commercial needs.
What is a chattel mortgage?
It is a business finance product where the customer owns the vehicle at the time of purchase. The financier takes a mortgage over the vehicle as security for the loan. Once the payments are completed, the mortgage is removed and the title to the car belongs to the customer.
A Chattel Mortgage will suit someone who will use the purchased vehicle over 50% of the time for business purposes. This product is mainly used by a company, sole trader, trust, ABN holders or partnerships.
Car loan that means business
Deciding on the right car finance option for your situation can be rather confusing. There are so many choices, let Essendon Finance take the pressure off and do all the hard work for you so you can drive your car with a better deal.
Our qualified business car finance consultants are ready to discuss your Chattel Mortgage options. If your business needs a flexible residual value payments or seasonal repayments, our consultants will help you make an informed decision that better suits your bottom line.