Nimik Finance - Chattel Mortgage

Chattel Mortgage

car finance, financing, chattel mortgage, car lease, car leases, cars, financing, commercial hire purchase,car, carsChattel Mortgage is similar in structure to Commercial Hire Purchase. The basic difference is that the borrower retains ownership of the car from the commencement of the contract. The financier takes a mortgage over the car for security purposes.

Chattel Mortgage can be structured over a term of 24 months to 60 months with or without a “balloon payment”. The inclusion of a “balloon payment” at the end of the term has the effect of reducing monthly payments.

For taxation purposes under a Chattel Mortgage the borrower may claim Interest and Depreciation up to the Depreciation Limit of $57,180. Some accountants recommend use of Chattel Mortgage in order to claim the GST content of the purchase price in full on the first BAS after purchase, rather than over the term of the loan. Borrowers are advised to obtain accountant’s advice in relation to tax benefits.

Nimik can offer Chattel Mortgage with

  • No Early Payout Penalty*

*(to approved applicants)

If you would like one of our experienced consultants to prepare a tailored finance package, please fill out our finance enquiry form, or give us a call on 03 9596 8777.