A Chattel Mortgage is a type of finance where the applicant buys an asset (in this case a car) which the finance company finances on their behalf. In exchange for this, the finance company secures their interest in the vehicle by lodging their “mortgage” or interest on the Personal Property Security Register (PPSR). At all times the vehicle is owned by the borrower and, once all payments are made, the finance company will remove their mortgage/interest. Terms generally range from 12 months to 60 months. The applicant can also elect to have a residual/balloon payment which is a percentage of the purchase price of the asset that is paid at the end of the term. Contact our office for residual guidelines. Having a residual payment will reduce monthly instalments. The residual payment can be paid out in full or rolled over for another finance term. The applicant may choose to trade in the existing vehicle for an upgrade and can use the residual value as a guide for negotiating the trade in value.
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