Considering all the different types of car loans available out there, we can understand why deciding on the right one for you can be difficult.
At Rapid, we’re passionate about providing our customers with loans solutions that suit their individual circumstances. A big part of this is providing information and resources.
If you are interested in finding out if a Chattel Mortgage is the right loan for you, read on.
Chattel Mortgages, Explained
A Chattel Mortgage is a type of car loan commonly used by businesses to finance vehicles that are intended for commercial use.
Under a Chattel Mortgage, a lender will forward funds to their client to be used specifically for buying the chosen vehicle. The lender will take a security charge over the assets (the vehicle) in the form of a ‘mortgage’. Because the financial lender has security over the loan from the beginning of the contract, the client will be recognised as the legal owner of the vehicle from the get-go.
Ownership of the vehicle gives the customer a significant amount of flexibility when it comes to how (and how frequently) they want to make repayments to their lender. Repayment flexibility is one of the more enticing aspects of a Chattel Mortgage.
Who is a Chattel Mortgage Suitable For?
Since businesses that choose to finance their vehicle using a Chattel Mortgage are able to claim any GST included in the price of the vehicle, this type of car loan is understandably popular with those who have the ability to account for GST. If you are a business that accounts for GST on either a cash or accruals basis, this means you.
Read more about Chattel Mortgages and see if they might be right for you.
If you need help deciding on the right type of car loan for you, contact Rapid Finance on 1300 467 274