How Chattel Mortgage Truck Loan Works

You most likely understand how a mortgage on a home works and a Chattel Mortgage on your truck or trailer purchase is a similar concept. Your truck, referred to as the Chattel, is used as security against the truck finance loan, the mortgage, made to you by the lender. On signing the Chattel Mortgage agreement and finalising the purchase, you take ownership of your truck or trailer and then make monthly repayments as per the finance agreement.

Some Possible Benefits Of Chattel Mortgage Finance

  • You have the option of paying a deposit to reduce the overall Chattel Mortgage amount and hence lower the monthly repayments.
  • Any GST on the truck purchase price is a claimed on the next BAS lodged, which can be a significant benefit at certain times in your operational cycle if you are GST registered.
  • The depreciation on the vehicle could be treated as a tax deduction at the end of your financial year.
  • The truck finance rate interest paid on your truck Chattel Mortgage could also be claimed at the end of financial year as a tax deduction.
  • Chattel Mortgage is available for both new truck and used trucks.
  • Chattel Mortgage can be suitable for businesses that use a cash accounting method self employed truck owner driver, SMEs through to large, truck fleet operators depending of course on individual circumstances.
  • A balloon is only an option in a Chattel Mortgage Loan (subject to lenders approval). This is a percentage of the purchase price which is payable in full at the completion of the loan term. Your Easy Truck Loans consultant will discuss with you, what percentage best suits your circumstances.

Chattel Mortgtage, Leasing & CHP

Not sure which business loan structure you need? Your consultant will be happy to guide you on the correct structure and often communicate with your accountant who understands your business to ensure everything is correct.

Tailored Payment Solutions

At Easy Truck Loans, we understand that every business has unique needs and circumstances. We prioritise tailoring your package to your personal situation, ensuring you get everything required to keep your business going. Whether you need structured payments to suit your seasonal cashflows, let us know. Your consultant will work with you to find the best solution for your business.

Check With Your Accountant

Your consultant will explain all the details of a Chattel Mortgage to you but it is recommended that you refer to your own accountant for specific advice on your individual circumstances. Get in touch with a consultant to discuss arranging a Chattel Mortgage for your truck or trailer purchase.