FAQ: Who is eligible for a Chattel Mortgage, and who do they suit?
Who is eligible for a Chattel Mortgage, and who do they suit?
Both businesses (including companies, sole traders and partnerships) and individuals are eligible for a Chattel Mortgage, as long as the car is used predominantly for business (income producing) purposes.
Generally, a Chattel Mortgage best suits customers who are registered for GST on a cash accounting basis, as this can allow them to claim the GST contained in the purchase price of the vehicle as an Input Tax Credit on their next BAS.
Another consideration is whether the customer prefers to lease the vehicle rather than own it, in which case a Car Lease (Finance Lease) may be more appropriate.