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What is a Chattel Mortgage?

Now days probably the most common form of asset and equipment finance (for businesses), a chattel mortgage is essentially a mortgage over goods to be financed. Chattel mortgage is classed as a cash sale in that the goods automatically become your property on purchase and the finance company takes a mortgage over the chattels (assets).

Tax & GST:

Under a chattel mortgage a client may claim depreciation, running costs and the portion of the repayment attributable to business use. The chattel mortgage allows businesses to claim the full input tax credit from GST incurred expenses immediately (next BAS statement). GST is charged on the purchase price of the asset but not on the monthly rental or residual payment.

Cost of Finance:

Generally Chattels are the most competitive when it comes to interest rates against the finance.
There is however an additional cost of stamp duty which is paid against the total amount financed.

CoverU can provide you access to the most competitive chattel mortgages available with:

  • Flexible contract terms ranging from 12 to 60 months
  • Tailored monthly payment to suit your budgets
  • Flexible residual values (balloon)
  • Fixed interest rates
  • Fixed repayments for the term of the contract
  • Deposits through cash or trade in welcome
  • Claim tax deductions for 100% of the business use of the vehicle
  • Claim GST on the purchase price of the vehicle
  • Claim depreciation on the vehicle
  • No GST is charged on the monthly repayment or the contract balloon amount
  • Secured finance allowing for cheaper interest rates

Contact CoverU today to see how much we can save you!


    1300 122 211