A chattel mortgage is the most common finance type we offer and may provide significant financial advantages over a consumer loan, providing the asset being purchased will be used primarily for business purposes (i.e. over 50% business purpose).
A chattel mortgage works much like a normal mortgage. You take ownership of the asset at time of purchase and the lender simply takes a ‘mortgage’ over it until the loan is paid in full. One of the biggest benefits of ‘owning’ the asset is the ability to claim things like interest and depreciation.
Businesses that account for GST on a cash basis might also be able to claim GST on the purchase price of the asset on their next Business Activity Statement. It is important to understand these tax implications prior to choosing the type of finance you require. Speaking with your accountant prior to your purchase will help you decide what type of finance you require.
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High pressure sales tactics along with the excitement and emotion of that new car can hinder the finance decision making process. Sometimes a quick decision now can cause years of financial pain down the track.
We specialises in assisting with car finance that suits your needs. We can provide indicative quotes within minutes and match the right lender for your situation and car type.
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Make sure you compare the ‘actual’ repayment amount. This is the only way to compare apples with apples.
A low interest rate quoted by a dealer might be an indicator that they are making more margin on the sale price of the car, thus reducing your ability to negotiate a great price.
If you can negotiate a good price on the car first, you can then compare finance options knowing you are getting a great deal on both.
