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Chattel Mortgage

Chattel mortgage from Credit One is designed specifically for Australian businesses. This flexible finance option puts you in control while offering significant tax and cash flow benefits.

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Chattel Mortgage

What is a chattel mortgage?

A chattel mortgage is a popular finance solution where the lender provides funds for you to purchase a vehicle or equipment. With a car chattel mortgage, the vehicle becomes your asset from day one, and the loan is secured against it. Unlike traditional finance options, a chattel mortgage offers tailored repayment terms and potential tax advantages, making it ideal for businesses looking to maximise their cash flow.

Chattel Mortgage Calculator

What are my repayments?

How much can I borrow?

At today's lowest car finance rate of 5.90%,

you will pay approximately ...

$142.49
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At today's lowest car finance rate of 5.90%,

you can borrow approximately ...

$28,128.85
Apply Online Now

The information which you calculate from this Calculator is intended for use by you as a guide only. See more in our Disclaimer.

It is not an offer and has no legal effect on any contracts entered into by you ‘ the client’. This simulation and the resulting calculations do not constitute a loan application or offer. The figures and formulae used within this calculator may change at any time without notice.Should you apply for any Credit One product, we will make our own calculations and we will not necessarily take your calculations into account. All Interest rates are displayed ‘are guides ONLY’, repayments as a result of this simulation have no legal offering.Credit One accepts no responsibility for any losses arising from any use of or reliance upon any calculations or conclusions reached using the calculator.Information provided on this calculator does not constitute an offer of finance. Any loan request is subject to assessment against normal lending criteria. Fees and charges may apply. This calculation does not take into account any fees, charges or government taxes which may apply to either the calculation of the loan amount or the monthly repayments, such as GST or Luxury Car Tax (where applicable).

How does a Chattel Mortgage work?

A chattel mortgage is a simple and flexible way to finance a business vehicle. Once you’ve picked the vehicle you want, Credit One works with you to secure the loan from a lender in our network. The vehicle is yours from the day of purchase, but the lender holds a mortgage over it until the loan is fully repaid.

You can structure your repayments to fit your business needs, with options like balloon payments to keep monthly repayments manageable. If the car is used for business purposes, you may also be eligible to claim back GST and other tax benefits.

What are the benefits of a chattel mortgage?

A chattel mortgage gives your business the best of both worlds: ownership and flexibility. From the moment you drive away, the vehicle is in your name, meaning you can use it however you need. With repayment plans that can be customised to fit your cash flow, including the option for a balloon payment, you stay in control of your budget.

On top of that, there are potential tax perks too. If the vehicle is used for business, you could claim GST on the purchase price and tax deductions for interest and depreciation. And because the loan is secured against the vehicle, you can often enjoy lower interest rates.

Why Choose Credit One

Convenience

We compare your financial needs with all of the lenders on our extensive panel to find the best option for you and your individual circumstances.

We compare your financial needs with all of the lenders on our extensive panel to find the best option for you and your individual circumstances.

Choice

We have established relationships with over 40 of Australia's most trusted lenders, including major banks and lenders not available directly to the general public.

We have established relationships with over 40 of Australia's most trusted lenders.

Flexibility

Our premium finance solutions incorporate low establishment fees, no ongoing fees, bank-beating interest rates. We can tailor a finance package to suit your needs.

Our finance solutions incorporate low establishment fees, no ongoing fees, bank-beating rates.

No Waiting

Credit One offers 60 Seconds Online Finance Quotes as well as same day approvals using our simple, obligation-free Online Finance Applications.

Credit One offers 60 Seconds Online Finance Quotes and same day approvals.

Service

Our Finance Consultants are available 7 days a week for your convenience, give us a call today on 1300 CREDIT (1300 273 348) or request a call back.

Our Finance Consultants are available 7 days a week for your convenience.

Confidence

We provide independent and unbiased service to get the best finance solution for you, that's why Credit One have been named "Broker of the Year" 3 years in a row.

We provide independent and unbiased service to get the best finance solution for you with a 25 year history of providing great low rate finance packages. You're in good hands!

Car Finance Options at Credit One

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Secured Car Loan

A secured car loan is a type of financing where the lender provides funds to purchase a vehicle and uses the car as collateral for the loan. These often have the lowest interest rates due to the reduced risk for the lender.

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Couple buying red car

Unsecured Car Loan

An unsecured car loan allows you to borrow funds without offering the car or any other asset as collateral. This allows flexibility on what car you would like to purchase without any collateral guidelines form the lender. Credit One works with lenders to help you secure an unsecured loan with competitive rates tailored to your needs.

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Private Sale Car Loan

Credit One can help you find a financing solution for all private sale purchases! We won't discriminate if you have found a great deal with a private seller, and what's more, we provide you with great rates and excellent service. We can do secured or unsecured finance for Private Sales.

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Personal Loan

Need a new car, a much-needed holiday, funding for your dream wedding, or to take control of your finances by consolidating your debts? Credit One can assist with a personal loan to help you get what you want without waiting.

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Chattel Mortgage

A chattel mortgage is a business finance product where the financier provides funds for the customer who takes ownership of the vehicle at the time of purchase. The financier takes security “mortgage” over the vehicle. Once the loan is completed, the financier releases the security over the vehicle.

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Couple buying new car

Novated Lease

A novated lease is an agreement between you, your employer, and a lender that allows you to finance a car using your pre-tax salary. Save on tax while simplifying car ownership through bundling of running costs.

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Couple buying new car

Hire Purchase

A hire purchase agreement allows business owners to rent the goods through regular instalments with an option to purchase at the end of the hire period. Ownership transfers to the business after the final payment/purchase.

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Common Questions about Chattel Mortgages

Do I fully own the car during the loan term of a chattel mortgage, or does the lender have some control over it?

With a chattel mortgage, you own the vehicle from the moment of purchase. However, the lender places a mortgage over the car as security for the loan. This means that while you have full use of the vehicle, the lender retains an interest in it until the loan is fully repaid.


What happens if I can’t keep up with the chattel mortgage repayments? Can the lender take the car away?

If you fall behind on your repayments, the lender has the right to repossess the vehicle to recover the outstanding debt. It's crucial to communicate with your lender if you're experiencing financial difficulties, as they may offer solutions to help you manage your repayments.


Am I eligible to claim GST on the vehicle’s purchase price, and how does that work?

If your business is registered for GST, you can claim the GST included in the vehicle's purchase price as an input tax credit on your next Business Activity Statement. This applies regardless of whether you account for GST on a cash or accrual basis. However, GST is not applicable to the loan repayments themselves.


Can I deduct the interest repayments for a chattel mortgage, and how do I calculate the business-use portion?

Yes, if the vehicle is used for business purposes, you can claim tax deductions for both the interest on the loan and the vehicle's depreciation. To determine the deductible amount, calculate the percentage of the vehicle's use that is for business. For example, if you use the vehicle 70% of the time for business, you can deduct 70% of the interest and depreciation expenses. It's advisable to maintain accurate records of business and personal use to substantiate your claims.


What if the car’s value drops faster than expected? Will I owe more than it’s worth?

If the vehicle's value depreciates more quickly than anticipated, it's possible that the outstanding loan balance could exceed the car's market value. This situation, known as being "upside-down" on the loan, means you would owe more than the vehicle is worth. To mitigate this risk, consider making a larger down payment or opting for a shorter loan term to build equity faster.

How do I prepare for the balloon payment at the end of the loan? What if I can’t afford it?

A balloon payment is a lump sum due at the end of the loan term. To prepare, it's important to plan ahead by setting aside funds regularly to cover this amount. If you're concerned about affording the balloon payment, discuss options with your lender, such as refinancing the balloon amount into a new loan or adjusting the loan structure to reduce the balloon payment.


Do I have to use the car mainly for business purposes, or can I use it for personal trips too?

A chattel mortgage is designed for assets used predominantly for business purposes. This generally means the vehicle should be used more than 50% of the time for business activities. Personal use is allowed, but it's important to maintain records of how the vehicle is used to accurately claim tax deductions and ensure compliance with the terms of your financing.


Does Credit One also provide chattel mortgages for business equipment?

Yes, we offer chattel mortgages not only for vehicles but also for a wide range of business equipment. This financing solution can help your business acquire necessary assets while managing cash flow effectively. Our team is ready to assist you in finding the right financing options tailored to your business needs.


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