How Chattel Truck Mortgage Loan Works
You most likely understand how a mortgage on a home works and a Chattel Mortgage on your truck or trailer purchase is a similar concept. Your truck, referred to as the Chattel, is used as security against the truck finance loan, the mortgage, made to you by the lender. On signing the Chattel Mortgage agreement and finalising the purchase, you take ownership of your truck or trailer and then make monthly repayments as per the finance agreement.
Need an estimate payment - calculate your loan repayments here - online truck finance calculator
Some Possible Benefits Of Chattel Mortgage Finance
You have the option of paying a deposit to reduce the overall Chattel Mortgage amount and hence lower the monthly repayments.
Any GST on the truck purchase price is a claimed on the next BAS lodged, which can be a significant benefit at certain times in your operational cycle if you are GST registered.
The depreciation on the vehicle could be treated as a tax deduction at the end of your financial year.
The truck finance rate interest paid on your truck Chattel Mortgage could also be claimed at the end of financial year as a tax deduction.
Chattel Mortgage is available for both new truck and used trucks.
Chattel Mortgage can be suitable for businesses that use a cash accounting method self employed truck owner driver, SMEs through to large, truck fleet operators depending of course on individual circumstances.
A balloon is only an option in a Chattel Mortgage Loan (suject to lenders approval). This is a percentage of the purchase price which is payable in full at the completion of the loan term. Your Jade consultant will discuss with you, what percentage best suits your circumstances.
Chattel Mortgtage, Leasing & CHP
Not sure which business loan structure you need. We will be happy to guide you on the correct structure. we often communicate with your own accountant who understands your business to ensure everything is correct.
Want structured paymnets to suit your seasonal cashflows. Let us know. Tailoring your package to your personal suitiation is a priority in our job. Making sure you get everything required to keep you business going.
Check With Your Accountant
Your Jade Consultant will explain all the details of a Chattel Mortgage to you but we do recommend that you refer to your own accountant for specific advice on your individual circumstances. Get in touch with a Jade Consultant to discuss arranging a Chattel Mortgage for your truck or trailer purchase. Call 1300 000 003