Own the Vehicle. Unlock Potential Tax Benefits.
A chattel mortgage is a business vehicle loan that allows you to own the vehicle from day one, while using it as security for the finance — eligible businesses may be able to claim GST on the purchase price, as well as applicable depreciation and interest deductions.
A loan that knows you mean business.
A chattel mortgage lets your business own the vehicle from day one, with the vehicle serving as security for the loan. Repayments are made in fixed instalments over an agreed term, typically between one and seven years.
Because your business owns the vehicle, eligible businesses may be able to claim GST credits (where applicable) and access depreciation and interest deductions, subject to individual circumstances and tax advice.
Eligible businesses may be able to claim the GST on the vehicle purchase price in their next Business Activity Statement (BAS), subject to your business circumstances.
Eligible businesses may be able to claim depreciation and interest expenses, subject to your business circumstances.
Choose a balloon payment (residual value) that suits your cash flow and financing objectives, subject to lender criteria.
Your business owns the vehicle from day one, giving you the flexibility to retain, trade or sell it at the end of the finance term.
Tailored to You
Term
Select a finance term from 12 to 84 months. Longer terms can reduce monthly repayments, while shorter terms may reduce the total interest payable over the life of the loan.
Balloon (residual)
Choose the balloon payment (residual value), subject to lender criteria. A higher balloon can reduce your monthly repayments, and we'll help you select an option that suits your business and the vehicle.
Deposit
Contribute as much or as little deposit as you choose, including $0 for eligible applicants. If you're trading in an existing vehicle, any available equity can generally be applied towards your next purchase.
Maintenance Plan
Choose an optional fully budgeted maintenance package that bundles fuel, servicing, tyres, registration and insurance into one convenient monthly payment.
Which structure fits your business?
A quick comparison. Remember, your accountant should always have the final say.
| Chattel Mortgage | Finance Lease | Operating Lease | |
|---|---|---|---|
| Vehicle Ownership | Your business owns the vehicle from day one. | Financier owns the vehicle during the lease term. | Lease provider retains ownership of the vehicle throughout the lease. |
| GST Treatment | Eligible businesses can claim the applicable GST on purchase. | GST is generally claimed on lease rentals. | GST is generally claimed on lease rentals. |
| End of Term | Your business retains ownership once the loan is fully repaid (incl. Balloon Payment). | Options include purchasing or refinancing, depending on the agreement. | Return the vehicle at the end of the lease (subject to lease terms). |
| Best suited to | Businesses looking to own the vehicle and potentially access GST and tax benefits. | Businesses seeking ownership flexibility at the end of the lease. | Businesses wanting predictable vehicle costs without ownership responsibilities. |