>> chattel mortgage
Under a chattel mortgage the finance provider funds the purchase of the motor vehicle. The financier takes a mortgage over the vehicle as security for the car loan.
The customer takes ownership of the motor vehicle at the time of purchase and continues to make monthly Chattel Mortgage payments for the motor vehicle. Once the contract is completed, the mortgage is removed offering the customer clear title to the motor vehicle.
The chattel mortgage can come with or without a balloon payment. Balloon is the amount that will need to be paid to the finance provider at the end of a chattel mortgage in order to reduce ongoing monthly repayments.
Having a balloon put into your agreement makes the monthly lease payments
cheaper and much more affordable.
Why Consider a Chattel Mortgage?
A Chattel Mortgage is best suited to someone who intends to use the motor vehicle predominately for business purposes - therefore this car financing product is frequently used by companies, trusts, sole traders, partnerships and ABN holders