What is a chattel mortgage?

A chattel mortgage is the same product as a secured car loan only for assets that are purchased primarily for business use. For example, if you're a tradie and need a ute for moving your equipment from site to site, you may qualify for a chattel mortgage. 

If you're wanting to compare your next car loan, well good news, we can help you do that easily. 

How does a chattel mortgage work?

Much like a secured car loan, the lender will provide the funds for you to purchase the vehicle and you’ll take ownership at the time of purchase. The lender takes a ‘mortgage’ over the vehicle as security for the loan. Once the contract is completed you’ll own the vehicle outright.

What else do I need to know?

  • A tax deduction may be available when the vehicle is used for business purposes*
  • A customer who is registered for GST may claim the GST contained in the vehicle price as an input credit on their next Business Activity Statement (BAS)*
  • Improve your cash flow

* Please refer to your accountant for eligibility.

Estimate your repayments

Our process

We make getting finance simple.

We understand your needs
We find a deal that’s right for you
We give you ongoing support

Common questions about chattel mortgages

Benefits of a chattel mortgage include flexible loan repayment periods, the option to reduce the monthly repayments by setting a final balance (residual value or balloon), the potential to claim tax deductions if the car is being used for business purposes* and the potential to claim Input Tax Credits if you are registered for GST*

A chattel mortgage can also have additional benefits (subject to lender selection) including a fixed interest rate and monthly repayments for the duration of the loan as well as repayments that can be aligned with your or your business' cash flow.

*Please check with your accountant for eligibility

Both businesses and individuals are eligible for a chattel mortgage, as long as the car is being used predominantly for business purposes.

A chattel mortgage is a good choice for those who are registered for GST on a cash accounting basis, as you should be able to claim the GST from the vehicle’s purchase price as an Input Tax Credit on your next Business Activity Statement.

If the car is being used for business purposes, you may be able to claim a tax deduction on the loan interest charges, as well as on the depreciation value of the vehicle, up to the Depreciation Limit set by the Australian Tax Office. Speak to your accountant to find out more.

A chattel mortgage involves a finance company lending you the money to purchase a vehicle that will be primarily used for business purposes. Set repayments are then made on a monthly basis.

You’ll own the vehicle outright, however, the finance company will place a “mortgage” over the vehicle, as security against the loan.

Once the loan and any Residual Value (the final balance on the vehicle) has been repaid, the finance company will remove the mortgage. Alternatively, you can choose to re-finance the Residual Value or trade the vehicle in.

Looking for more information?

We've made it easy for you to find everything you need here.

EXCEPTIONAL, as good as Customer Service gets

I’ll keep this simple, if you want the BEST advice, the BEST service and the BEST product for your c... Product Review

Can't Recommend Highly Enough!!

Have purchased two vehicles through Stratton Finance and each time the service has been fantastic. S... Product Review

Stratton Finance A++

I've purchased 3 vehicles using Stratton and every time it has been hassle free. Not hidden nasties ... Product Review

Meet our network partners

With over 22 years experience, we have built an unmatched panel of finance and insurance partners which gives you access to products for your needs.

Pepper Money

Macquarie

RateSetter

AMMF

Liberty

Westpac

ANZ

Latitude

Redbook

Thorn Group

Bank of Queensland

Carsales

Metro

Get Capital

Axsess Today

Carconnect

Finance1

Capital Finance

Ready to get started?

Get an instant quote or apply now online.