A Chattel Mortgage is another method of finance used to acquire vehicles, equipment and machinery. Under these arrangements, the financier takes ownership of the asset at the time of purchase in exchange for providing the funds. The customer has possession and use of the asset in return for making regular payments. Once the final payment has been made, including any residual/balloon payment, the ownership of the asset transfers to the customer. The residual/balloon payment can also be refinanced into a new loan facility if the customer is not in a position to pay out the residual payment.
The Chattel Mortgage is similar to the CHP but has differing taxation advantages and implications. Appropriate financial advice through your accountant or financial advisor is strongly recommended to determine the best option.
- Max loan term is 7 years.*
- Finance up to 150% of the asset value. Deposits may be used.*
- Interest on payments and depreciation may be tax deductible if used for income producing purposes.*
- Input tax credits may be available under certain circumstances if registered for GST.*
* Applications for credit are subject to the financier’s normal credit assessment criteria. Fees or charges may apply. Full details of all product terms and conditions are available upon request. Any taxation information provided is only general in nature and does not constitute tax advice, nor is it necessarily applicable to your particular circumstances. Farm Machinery Finance strongly recommends that you consult with your accountant, financial advisor and lawyer to determine the most suitable lending option for your particular circumstances and whether any particular taxation laws, obligations or benefits may apply to you.