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| Fleet Sales - Chattel Mortgage |
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Since the inception of GST The Chattel mortgage is a very flexible finance option, in that you have the ability to either finance the full purchase price, or alternatively, you can include an upfront deposit or trade-in to reduce the rental commitment of your chattel mortgage, while a Residual payment may also be placed at the end of a chattel mortgage (much like a lease residual) to represent the vehicles end value. Alternatively, you may choose to structure your rentals to clear the debt in full over the term of the chattel mortgage (fully amortised). A Chattel Mortgage is essentially a Mortgage over goods (chattels) to be financed. A Chattel Mortgage is classed as a cash sale in that the goods automatically become yours on purchase, then the finance company takes a mortgage over the goods (chattels). For tax purposes you can still claim depreciation, running costs and interest paid, against your business income. The Chattel Mortgage allows businesses to claim the full input tax credit from GST incurred expenses immediately (next BAS statement). **Always seek advice from your accountant in regard to this.**  Chattel Mortgage - Benefits Interest charges in the chattel mortgage and depreciation of the vehicle are tax deductible. No capital outlay is required in a chattel mortgage and cash flow is protected. Terms can be flexible with the chattel mortgage, fixed repayments make for easy future budgeting After full payment of the chattel mortgage agreement, ownership of the goods is transferred to you. You have the option to make payments with or without a balloon payment at the end of the term. Click here to fill in the online Enquiry Form or phone Fleet Sales on 02 9872 8000 and one of our friendly consultants will be happy to answer any questions you may have. |