If your vehicle is used for business at least 51% of the time, CarClarity can help you secure a chattel mortgage to finance a new vehicle or equipment for your business. The loan provider will use the vehicle as the security for your loan.
There are also tax benefits, the goods and services tax (GST) inclusive purchase price of the car or equipment is financed, and you’re entitled to claim an input tax credit up-front.
Benefit 1
Compared to an unsecured loan e.g. a consumer car loan, a chattel mortgage for cars typically has lower Interest rates.*
Benefit 2
Using a chattel mortgage will give you ownership of your vehicle from the start, so it will appear as an asset for your business as well as a liability (the loan). This is not the case for a hire purchase or a finance lease, as you don't own the vehicle until all repayments are paid in full.*
Benefit 3
Chattel mortgages may have some accounting treatments and tax benefits. You're entitled to claim an input tax credit up front, in addition, you may be eligible to claim interest and depreciation costs depending on how much your car or equipment is used.*
Benefit 4
Businesses with a chattel mortgage may claim interest charges as deductions on your Business Activity Statement. (BAS.)*
Benefit 5
Mortgage repayments can be fixed. Rates also have the potential to be structured to suit the cash flow of your business.*
Benefit 6
You have the choice and flexibility to set a balloon payment at the end of the term. This gives your business the ability to decide whether you’d prefer to keep your monthly repayments down by paying more at the end of the term.*
Benefit 7
Repayments can be structured over a range of terms. Typically between one to seven years.*
* This is general advice only, please seek advice from your accountant regarding your circumstances and tax impacts.
Current lenders have capacity to finance commercial vehicles from $5,000 up to $250,000. Individual and business circumstances may affect the maximum loan amount.
No. A deposit is not required for a commercial car loan.
Certain types of vehicles are eligible for the Australian Government’s instant asset write off. If eligible, the asset may be written off immediately and a tax deduction claimed for the business portion of the purchase cost. Learn more about the ATO’s instant asset write off.
You may be eligible to claim a tax deduction on your business vehicle depending on the vehicle, company structure and vehicle usage. Learn more about claiming a tax deduction for motor vehicle expenses.
CarClarity is an online financial comparison service and is owned and operated by CarClarity ACL Pty Ltd ABN 50 606 243 243 / ACN 606 243 243 and Australian Credit License 478 874.
CarClarity provides you access to our expert team who can assist in selecting suitable car loans from our panel of 30+ lenders and over 1000 financial services products. The financial products compared on this website do not necessarily compare all features that may be relevant to you and CarClarity does not compare all rates in market.
All applications are subject to the credit provider’s credit assessment and loan eligibility criteria. Terms, conditions, fees and charges apply. Information provided is factual information only, and is not intended to imply any recommendation about any financial product(s) or constitute tax advice. If you require financial or tax advice you should consult a licensed financial or tax adviser. CarClarity may receive a commission from lenders we recommend.
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