Chattel Mortgage
Ask the majority of people what finance options they have when they make the decision to purchase a vehicle, and they’ll tell you that they’ll need a car loan. While car loans are clearly an excellent option for people – when negotiated by an experienced car finance broker – there are other choices you might want to consider. A chattel mortgage is an increasingly popular financing choice for the purchase of vehicles, and this is particularly the case with the businesses of Australia. At Car Loans Bendigo, we’re thrilled that we can provide a service that makes getting a high quality chattel mortgage in place that much easier. The team of brokers that we’ve assembled is more than capable of getting the best terms for your finance, and that means that you can spend more time enjoying the use of your vehicle, rather than worrying about the finances involved with the purchase. To get some further information on our chattel mortgage service, you can either read on below or reach out to our customer service representatives.
What is a Chattel Mortgage?
Before we get to anything else, we need to understand exactly what a chattel mortgage is. After all, many people are totally unfamiliar with this type of finance. Put simply, a chattel mortgage is a financial arrangement where a lender provides you with the capital that you need to purchase a vehicle, except, unlike a car loan, the vehicle is used as collateral. With a chattel mortgage, repayments are covered over a set period of time, with associated interest rates, a deposit, and various other conditions.
Ideal for Businesses
More and more businesses across Australia are making the decision to use chattel mortgages to finance their vehicle purchases rather than the other conventional car loans that they could access. Why exactly is this, however? Generally, it’s because chattel mortgages make it possible to leverage various tax breaks and benefits, which would completely inaccessible otherwise. For businesses, it’s another way to shave off some expenditure and bolster that bottom line. Our brokers can give some further information about the way that you can save money here.
Balloon Payment Options
When you make the decision to press ahead with a chattel mortgage, you also have the option to integrate a balloon payment into the agreement. Now, it’s possible you’re wondering “what is a balloon payment?” – and surely you’re not alone. A balloon payment is where you pay a pre-determined amount of money to the lender at the end of your financial repayment period, giving you full ownership of the vehicle. This facilitates lower repayment amounts for the duration of the agreement.
Securing Ideal Terms
Chattel mortgages aren’t always suitable for the purchase of vehicles, but they are a great option for many circumstances. We can make sure that you have a first class agreement in place with a lender, with more reasonable interest rates and a fair balloon payment – if that’s your preference. If you want the very best terms, the only choice has to be Car Loans Bendigo.
