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.
The Office didn’t provide specific details about the new laws, but it can be assumed that they’re designed to make chattel mortgages more appealing and better controlled. Those unfamiliar with these special mortgage packages should consult reputable finance companies, like Credit Group Australia which also offers some of the best chattel mortgage rates in Melbourne, Perth, and other cities in the country. All there is to say about chattel mortgages is that they’re a great way for a business to lease and/or own a vehicle because they have fixed monthly payments and interest rates, as well as faster loan approvals.
Perhaps the concept should be explained in greater detail. In a chattel mortgage arrangement, the financier takes a mortgage and gives the borrower the money needed to purchase a vehicle, in return for the borrower paying the mortgage over a period of time.
Businesses should bear in mind that there are several helpful ways for them to acquire vehicles for their workers to use without straining their budget. One method is to apply for chattel mortgages—which have low interest rates, several terms options for flexibility, a variety of residual value options, and even tax deductions for the payments made. Another option comes from lenders like Credit Group that offer a range of finance options including a commercial car lease in Melbourne and all major cities around Australia. A lease can feature various benefits such as discounts, servicing, insurance, and more, depending on the lender.