What is the definition of "Chattel Mortgage"? A Chattel Mortgage is a part business use car finance or equipment financial product. Savvy Chattel Mortgage explains chattel mortgage and how it works as below.
When people buy a vehicle using a Chattel Mortgage, the finance company or lender, lends money to the customer to purchase a car, equipment or large motor vehicle which becomes the "chattel". The borrower or customer makes regular repayments as agreed in the loan documentation. With a chattel mortgage loan, the borrower owners the item at the time of purchase and the finance company takes out a "mortgage" over the asset by way of security for the loan.
When the term of the loan is completed and any residual known as a "balloon" is paid, the lender removes the mortgage to give the customer clear title to the car or other assets.
You never know how much you can save until you get a quote
Every day, all around Australia people are buying the cars and other things that they need with personal or business finance.
Protect your credit rating
An excellent credit rating is a valuable personal asset. It is easy to make a life changing financial mistake if you sign up for any loan that is put in front of you. Loan terms vary from months to years to allow borrowers to be comfortable with repayments.
A loan has to suit your income or business cash flow so that payments are structured for the individual. If a business, contractor or tradesman is paid monthly then a chattel mortgage finance offer has to allow for monthly payments, not weekly as it would set the borrower up for a default.
By planning ahead, seeking finance advice for business equipment, cars and furniture, people can protect their credit rating by not defaulting. Work out your business car finance repayments with a chattel mortgage calculator before you buy or sign up for a loan.
Second opinion
When you need finance and have an offer from a dealer, bank or a finance broker, take it away before signing to get an opinion from independent chattel mortgage finance expert.
No obligation finance advice.
One of the roles of online finance providers is to assist people who need to borrow for business equipment and indeed anyone in Australia who needs personal finance to buy things they need like, cars, furniture, caravan, trucks, office equipment, electronic items such as computers, printers and telephone systems to improve their lives.
There is no valid reason to justify people not getting a second opinion on any sort of finance, especially chattel mortgage finance as interest rates vary between personal finance providers as do the terms and conditions of chattel mortgage and personal loans. A finance broker you can trust, can be your lifelong loan adviser who understands how your business operates and your income cash flow. Every time you need to borrow, you can go back to someone you know rather than take random offers here and there. Your trusted adviser can introduce you to tax specialists, insurance consultants and accountants who can structure your financial affairs in accordance with prevailing tax deductions and allowance rules.
The best advice can save you money on every financial transaction.
It is important that business finance be structured to allow for the borrower's cash flow and business operations to take advantage of tax concessions and business purpose loan deductions. Only a finance expert can arrange a tailored loan or chattel mortgage product.
Some loan providers insist on real estate security or third party guarantees, but with the right chattel mortgage advice, the goods that you want can be the security for the money used to buy them. Often there will have to be a deposit but the best chattel mortgage finance brokers and lenders will prepare a very attractive loan offer that can be 100% of the items that you need.
The goods or vehicles become the security in a chattel mortgage loan.
Be careful when buying business equipment at large department stores and vehicle dealers offering finance to buy furniture, cars and equipment.
We have all heard retail stores when the run TV shopping ads with, "No interest and no repayments for 50 months". If it sounds too good to be true then there will be a catch in there somewhere.
Once of the catches is that if you miss a monthly installment on your department store arranged loan or dealer finance, there will be consequences. Interest will be charged and if the interest arrears are not paid, there could be a court hearing or a repossession.
Department stores and car dealers generally do not supply chattel finance, other than lay buy finance but they act as agents for their preferred lenders.
For consumers looking for personal loans or chattel mortgage finance to buy anything from furniture, cars, trucks and equipment, the best advice is to think for yourself and look beyond what the seller is offering by way of finance to buy what you need.
It is a consumer's right to look around for finance. Quite often better terms are available for those who hunt around and seek input into their buying decision from an independent finance broker. There is no charge to ask and the rewards can save money, avoid financial stress and heartache. For anyone who does not have a finance broker they can trust, the best advice is to look for a loan online as business finance is a complex financial product and what department stores and car dealers offer, may not be the best finance around.
Look around before signing up for any loan. You might get a better offer and you can go back to the dealer or store with a chattel mortgage finance offer in place and be a cash customer who can demand a better deal.
Protect your credit rating by getting a quote, arranging a chattel mortgage loan that is structured to your individual circumstances and borrow from reputable lenders who know your circumstances.
