Chattel mortgage is a type of finance used for purchasing vehicles and equipment. Under a chattel mortgage, a financing and leasing company will provide the customer with funds in order to purchase the vehicle or equipment (the “chattel”), the customer will make regular repayments and takes ownership of the vehicle at the time of purchase. The financier retains title until final payment is made and takes a “mortgage” over the vehicle. Once the term of the loan is complete and any residual paid the financier removes the Charge, giving the customer clear title to the car.
Every growing business needs an official vehicle, be it a car that the executives can use to attend client meetings or a truck that can deliver goods and equipment. When deciding how much to allocate, you have to evaluate the necessity of a vehicle in relation to the nature of your business. Factors such as credit rating, funding and vehicle acquisition, maintenance, and disposal costs should also be taken into account. Then comes the question of whether to buy, lease, or rent.
Signing up for a lease on a vehicle for your business or work can help keep your business overheads in check. However, it can be costly if you don’t study your lease or make the most of it. Here are some car leasing tips to remember:
Make sure you know everything about the offer.
Don’t focus only on the monthly payments and interests. When you add the total up with the maintenance expenses of the car, you may end up paying what you can’t afford. Leasing would also have limits in terms of years or number of kilometres. Make sure you stay within these limits to avoid extra fees, or find out if the terms of your lease can be extended. Continue reading
If you own a business that would need the use of vehicles to go from point A to point B, you might be wondering now whether to lease the cars or not. There are two kinds of car leases—the financial lease and the novated lease. The former is a straight-up renting of the vehicles where you take full charge of your fleet’s maintenance. The latter involves having a company lease a vehicle on your behalf, if you’re an employee, where that company takes all the responsibilities such a lease entails. Continue reading