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Chattel mortgage is a type of finance used for purchasing vehicles and equipment. Under a chattel mortgage, a financing and leasing company will provide the customer with funds in order to purchase the vehicle or equipment (the “chattel”), the customer will make regular repayments and takes ownership of the vehicle at the time of purchase. The financier retains title until final payment is made and takes a “mortgage” over the vehicle. Once the term of the loan is complete and any residual paid the financier removes the Charge, giving the customer clear title to the car.

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Every growing business needs an official vehicle, be it a car that the executives can use to attend client meetings or a truck that can deliver goods and equipment. When deciding how much to allocate, you have to evaluate the necessity of a vehicle in relation to the nature of your business. Factors such as credit rating, funding and vehicle acquisition, maintenance, and disposal costs should also be taken into account. Then comes the question of whether to buy, lease, or rent.

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How Chattel Mortgages can be Assets to Companies

Take, for instance, chattel mortgages. This type of loan allows a company to purchase assets easily, and to better manage its overall finances. Unlike unsecured debts like credit cards, a chattel or a moveable property (usually vehicles) are used to secure the loan. These loans are favourable for borrowers because of the relatively affordable chattel mortgage rates and flexible terms lenders offer. Lenders provide great deals for businesses as they make sure they are never left empty-handed.  The product itself made possible from the loan serves as the safety net (i.e. the collateral) when your company can’t satisfy the monthly payments anymore.

These loans make financing for company cars and heavy vehicles more convenient for businesses. The monthly repayments will be fixed and can be lowered. according to your budget, which makes your total monthly overheads more manageable. Aside from aiding your operations, these vehicles you take out a loan for can be used as fringe benefits to help attract and retain highly skilled employees.

The chattel mortgage can also be part of your tax reduction strategies and financial planning. You can claim some expenses from the ATO for the company cars you provide for business use, thus maximizing your company’s resources while reducing your cash outlays. 

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Different Ways to Lease a Car

There are a lot of ways you can get a loan for a car lease, and discerning the type of loan you need can be determined by asking yourself a simple question: how do I plan on using the car to be leased?

If you plan to use the vehicle for business purposes, you can file either a commercial hire purchase or a finance lease. In a commercial hire purchase, the vehicle is bought by the financier and is hired out to the purchaser over a given period until the purchase amount is completely paid out. A finance lease, meanwhile, leases the car from the financier to the motorist, with the latter bearing sole responsibility for the condition of the vehicle. Just remember, however, that each loan has its own respective requirements to which you need to pay attention.

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Vehicles never cease to improve and evolve—the market always has something new to offer, whether it’s a new model, or the latest technology. Once you start thinking about purchasing new vehicles for your fleet, it’s a good idea to talk to a number of business vehicle finance providers to accurately assess your current position and create a more personalised funding solution.

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If you’re an Apple or Android mobile user looking for Melbourne car lease or low chattel mortgage rates on your next vehicle, now is the time to download Credit Group’s mobile application. Just download the app free of charge, and you’re good to go. With this, you can browse and apply for financial lending out of the palm of your hand.

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Debt and Credit Talks: What is Chattel Mortgage?

During trying financial times, you might be pressed to find new sources of funds. Many people put their house on the line through new mortgages. This offers more risks to borrowers, though, as it can leave them without a roof over their heads if they fail to pay.

Chattel mortgages are typically used for mobile homes, as well as cars, boats, electronics, and similar moveable items. Businesses also take advantage of this type of mortgage, often to acquire more properties that they need in their operations. Usually, a company’s operational equipment and vehicles are used as collateral in such transactions.

Lenders look favourably on chattel mortgages as it is easy for them to sell the leveraged properties and get quickly compensated for unpaid loan balances. If you are thinking of entering into such a loan, choose a property that is not of much value to your career or business, such as an electronic gadget.

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A Novated Car Lease as Part of Compensation

Although employers recompense their workers with cash, there are those that offer their employees the chance to own their own cars through a novated car lease, as part of the workers’ benefits.

At the end of the lease period, the employee has several options. One of these is to pay the residual value of the car to have complete ownership over it. Another option is to enter into a new novated lease contract in a trade-in arrangement. While the employee has exclusive use of the car, it is considered on lease until the end of the lease contract.

However, the agreement only works while the employee is still with the company. Should the worker cease his employment before the lease period is up, he may be given the option to continue paying the lease out of his own pocket, transfer the lease arrangement with the new employer, or pay for the remaining value of the lease before its expiry.

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The Office didn’t provide specific details about the new laws, but it can be assumed that they’re designed to make chattel mortgages more appealing and better controlled. Those unfamiliar with these special mortgage packages should consult reputable finance companies, like Credit Group Australia which also offers some of the best chattel mortgage rates in Melbourne, Perth, and other cities in the country. All there is to say about chattel mortgages is that they’re a great way for a business to lease and/or own a vehicle because they have fixed monthly payments and interest rates, as well as faster loan approvals. Perhaps the concept should be explained in greater detail. In a chattel mortgage arrangement, the financier takes a mortgage and gives the borrower the money needed to purchase a vehicle, in return for the borrower paying the mortgage over a period of time.

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When it comes to the latter, Zurich discourages SMEs from cutting corners, such as reducing their workforce, because doing so creates a work environment where mistakes and accidents are more likely to occur. Instead, SMEs should adopt more practical solutions to save money, such as choosing one of the many business vehicle finance services offered by companies such as Credit Group Australia. Vehicle leasing, in particular, is a sensible choice if SMEs wish to reduce their vehicle monthly payments, tax bills, and other costs associated with operating a small business fleet. In addition, vehicle leasing gives SMEs fewer headaches since their contract options can include maintenance services for them, allowing employers to simply focus on making money. Even a standard car lease can provide SMEs great opportunities for growth.

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Play With Online Calculators Before Leasing

To help you determine the possible payment terms for your leased car, there are special leasing calculators online that you can use, and many are accessible right in the websites of many financing companies. These calculators consider the Purchase Price, Residual, Leasing Term, Interest Rate, and Interest Made in order to give you a look at how your payments will play out. You can check the payments you’d need to make on various cars until you have a better idea about what fits your budget and needs adequately.

While they will help you explore different possibilities before making a decision, these calculators are meant for illustrative purposes only. The best way to obtain accurate and realistic estimates is still to consult with reputable Perth finance companies and have them explain your possible chattel mortgage rates and other important things you need to know before leasing a vehicle.

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Different Perks of Leasing a Car

More and more people are opting to lease a car rather than buy a brand new one, and it’s not hard to see why. The array of car lease benefits have often proved it the better alternative to buying a new one altogether. Here are a few of such perks.

A new car regularly. People looking to keep up with automobile trends (or simply looking to impress) could rest well with leasing. The lower monthly lease payments allow for “more car for the money”—that is, one can typically drive a new car every several years, depending on how long the lease lasts. Also, regularly driving a newer car offers the latest built-in equipment (i.e. safety systems).

Better cash flow. Leasing a car effectively reduces one’s initial cash outlay. What this means is it allows for better use of your money instead of splurging such on the purchase of a brand-new car—the latter being a depreciating asset.

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Businesses should bear in mind that there are several helpful ways for them to acquire vehicles for their workers to use without straining their budget. One method is to apply for chattel mortgages—which have low interest rates, several terms options for flexibility, a variety of residual value options, and even tax deductions for the payments made. Another option comes from lenders like Credit Group that offer a range of finance options including a commercial car lease in Melbourne and all major cities around Australia. A lease can feature various benefits such as discounts, servicing, insurance, and more, depending on the lender.

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Companies and business owners looking for commercial auto finance plans should consider the options available to them before jumping in. There are two choices that they can choose from: buying the vehicles through a loan or leasing them. Of the two, a business car lease in Perth allows for more flexibility since the automobile’s residual value can potentially lower its lease cost. Additionally, commercial car lease payments are tax deductible, which can be helpful in a pinch. Although the price of vehicles is in danger of rising, Australian businesses have nothing to fear if they choose the right financial options.

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Osborne Park, Western Australia (September 8, 2014) – Credit Group Australia, a trusted finance and leasing company specialising in business vehicle finance, is proud to announce the launch of their new website which has been specifically designed to provide consumers with a wealth of useful information. The new online portal is intended to help prospective clients make more informed decisions about their personal, business, and corporate financing and leasing needs. The new website embodies simplicity and accessibility in web design to highlight the company’s services and to easily direct customers to the specific product or service information they require. Links to Credit Group Australia’s property finance, business funding, and vehicle financing and leasing services are located just below the large scrolling homepage banners to speed up navigation of the site so clients can find the information they are looking for quickly and easily.

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When it’s time for a company to purchase a fleet of vehicles, the first question you’ll often hear people ask is not what vehicle brand or model to pick, but how they’re going to pay for it. With so many car finance options available today, car financing can be a minefield for start-up companies or anyone who’s still wet behind the ears on the subject. Whether you’re an employer or employee, it will do you well to learn about the novated leasing method offered by Melbourne car leasing companies.

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Learn More about Novated Car Leasing Method

Buying a car to ease employees’ daily transportation is a good idea. It can help reduce downtime from late arrivals and absences. However, employees would normally ask how they can pay for this kind of service.

Though the novated type of lease has been around for many years, you’ll be surprised to learn that there are many misconceptions circulating about it. The info below may help to dispel some common myths associated with this car leasing method.

It’s only for people with high incomes. Inherent tax savings can be gained through competitive leasing rates, which means anyone who’s employed and driving a vehicle can benefit from a novated lease.

It’s too complicated to delve into. Novated leases are very simple to understand. Ultimately, when you enter into a novated leasing agreement, what you get is huge discounts on new cars, maintenance, fuel, tyres, insurance, and more. You’ll be pleasantly surprised with how much money you can save as a result.