All over Australia, businesses and individuals alike use chattel mortgages to purchase new and used cars, so there’s no wonder why you’re considering it too. Let’s get into the nitty gritty of chattel mortgages and outline five great reasons to choose one. We will tell you (and our customers will too) why Fingo are Australia’s top team of car financiers for chattel mortgages.
Chattel mortgages are one of the most sensible and common ways of financing a vehicle.
But first, what’s a chattel mortgage?
Oh, yeah. For the chattel mortgage newbies, that’d probably help. It’s actually pretty simple: a chattel mortgage is a fixed loan that provides for the purchase of a vehicle in exchange for a series of payments. The vehicle is then used for security.
1) Minimal capital outlay
We promise to keep the finance jargon to a minimum, but we have to talk about ‘capital outlay’ when discussing the benefits of a chattel mortgage. Capital outlay is the cost of maintenance, upgrades and repairs of the vehicle. With a chattel mortgage, your capital outlay is minimised (sometimes even ZERO) and lots of the expenses are covered in your agreement.
2) Tax benefits
If your vehicle is for business purposes, then you’re eligible for tax deductions if you get a chattel mortgage on your new car. It’s a huge drawcard for businesses looking to upgrade their fleet and save money on tax at the same time. You may also be able to claim deductions for the depreciation of the vehicle, as well as the interest component of the loan repayments.
3) Balloon payments are available
If you want to lower your monthly repayments, you can do this by opting for a larger balloon payment at the end of the agreement. Many customers at Fingo choose to go for larger balloon payments when paying off a car on a chattel mortgage.
4) Repayments are flexible
One of the reasons why chattel mortgages are so popular with businesses is because of the repayment flexibility. This allows the repayments to be adjusted to their particular needs – in most cases, their periodic cash flow. Fingo offers repayment terms from 12 months to 60 months to match your individual requirements.
5) Repayments are exempt from GST
Ahhh. The three words that we all want to hear. Forget ‘I love you’, because ‘exempt from GST’ is far more soothing. When you choose a chattel mortgage, your repayments are exempt from GST.
Streamline the process with Fingo’s Chattel Mortgage
There are a heap of great reasons to go with a chattel mortgage for your next car purchase, and there are even more great reasons to choose Fingo to help you with one. No hidden costs, expert knowledge and tailored finance solutions are just a few of them! They work alongside you to figure out the best chattel mortgage plan for you or your business. Talk to a team member at Fingo to update your wheels today.