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Chattel Mortgage

A Chattel Mortgage is an innovative way to finance your next vehicle purchase, operating much in the same way as a home mortgage. You borrow money from the financier to buy a vehicle, and the car is used as security against the loan until the final payment is made. Title ownership of the vehicle is yours upon contract commencement, and a chattel mortgage can gain your business significant tax advantages. With flexible contract terms from 24 to 72 months, you can select the length of contract to best suit your needs.

A Chattel Mortgage also provides you with the flexibility to place a deposit into the contract, either as cash or by using the equity in your current vehicle as a trade-in. Monthly repayments are based on the amount you wish to finance with an optional final repayment (balloon) at the end of the contract period. Combined with fixed repayments, budgeting is easy.

At Auto Approve, we have complete flexibility to tailor loans to suit your budget and needs, up to 7 years with or without a balloon. Simply select the vehicle of your choice, then give us a call.

Benefits of Chattel Mortgage:

  • Title of vehicle is transferred to you at time of final payment
  • Fixed interest rates
  • Finance is secured to vehicle ensuring a lower interest rate
  • Monthly repayments are fixed
  • Flexible contract terms
  • Repayments are GST exempt
  • Interest and depreciation are tax deductible

What can you buy with a Chattel Mortgage?

Across our suite of lenders the parameters extend to:

  • New cars from a franchise dealer
  • Used cars up to 20 years old from a dealer
  • Used cars up to 12 years old from a private seller
  • New motor cycles from a franchise dealer
  • Used motor cycles up to 20 years old from a dealer
  • Used motor cycles to 12 years old from a private seller