What is a Chattel Mortgage loan?

A chattel mortgage loan allows business owners to purchase vehicles and take full ownership of said vehicle. It’s a great option for businesses that require the use of cars or trucks in order to operate efficiently. It doesn’t matter the size of the business – all businesses are eligible to apply for any chattel mortgage Australia wide, whether they are a small business, large corporation, or a sole trader.

Before shopping for car loans or taking out one, it is important to learn essential facts to successfully negotiate the best car loan deals and stay on top of your finances.

What are the benefits of a chattel mortgage?

Loan term

The term of your car loan affects your monthly repayments. If you’ve taken out a shorter loan term, there will be less time to settle your loan obligation so your repayments will be higher. On the other hand, if you have a long-term car loan, your repayments will be lower because they will be distributed into a long time-frame. However, you will be paying more in interest.

Loan Amount

This amount will depend on the price of the car that you’re buying and your down payment. If you still owe money on your current car or if you have a car you’re trading in, it will also affect your loan amount.

Rates

Your monthly car payment not only covers the loan’s principal but also the loan’s interest and fees. If you’ve taken out a car loan with a high interest rate, you will be paying more every month.

Fees (incl pay out)

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Repayment frequency

A car loan is a big financial responsibility. While purchasing the vehicle may be easy because of the financing, the repayments that you will make for several years can greatly affect your finances. This is why it is important to understand and determine how much you’ll be repaying even before taking out a car loan.

When a lender approves you for a car loan, they will give you the money to pay for the vehicle on an agreement that you will repay it back with interest over an agreed-upon period. Your car loan payments are usually made in the form of monthly instalments. The amount of each repayment is determined by your loan amount, interest rate, and length of your loan term.

Asset condition (new or used)

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Vendor type (dealer or private)

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Our process

How does a chattel mortgage work?

Using a broker for your finance needs allows you to compare lenders and find a product that suits your circumstance.

The lender will keep the title on the vehicle as security for the loan.

The lender will register this interest in the vehicle with the Personal Properties Security Register (PPSR).

Once the borrower has completely paid back the loan, the lender will pass on the title of the vehicle to the borrower.

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Lender options

Find a suitable solution from Australia’s leading finance lenders.

ANZ
Liberty
Latitude
Pepper Money
Commonwealth Bank
NAB
Angle Finance
Plenti
Greenlight Auto Finance
Morris
First Mac
ANZ
Liberty
Latitude
Pepper Money
Commonwealth Bank
NAB
Angle Finance
Plenti
Greenlight Auto Finance
Morris
First Mac
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