Chattel Mortgage — Finance Your Business Vehicle or Asset, Claim the Tax Benefits
Chattel mortgage is the most tax-effective way for registered businesses to purchase a vehicle or asset. Journey Finance compares 80+ lenders to get you the best rate and handle the structure correctly from day one. Loans from $30,000 for businesses registered for GST.
✓ For businesses registered for GST ✓ Claim GST upfront + depreciation ✓ Loans from $30,000 ✓ Cars, utes, trucks and equipment
What is a chattel mortgage?
A chattel mortgage is a commercial finance product where your business takes ownership of the vehicle or asset immediately, and the lender takes a security interest over it until the loan is repaid.
For businesses registered for GST, a chattel mortgage typically offers three significant tax advantages:
1. Claim the full GST upfront
Unlike a lease, a chattel mortgage allows your business to claim the GST component of the purchase price in your next BAS — in full, in the period of purchase. This is a significant cash flow benefit on a $60,000+ asset.
2. Depreciate the asset
Your business can claim depreciation on the vehicle or equipment over its effective life, reducing taxable income each year.
3. Deduct the interest
The interest component of your repayments is generally tax-deductible as a business expense.
Always confirm tax treatment with your accountant — the above is general information only and does not constitute tax advice.
Is a chattel mortgage right for your business?
A chattel mortgage is generally the right structure if:
- Your business is registered for GST
- You are purchasing a vehicle or asset primarily for business use (typically 50%+ business use)
- You want ownership of the asset from day one
- You want to maximise tax deductions on the purchase
It may not be the right structure if the vehicle is primarily for personal use, or if your business is not registered for GST. Your Journey Finance broker will confirm which structure suits your situation.
Assets commonly financed via chattel mortgage:
- Utes, vans and commercial vehicles — Toyota HiLux, Ford Ranger, Mercedes Sprinter, Isuzu NPR
- Cars used primarily for business
- Trucks and heavy vehicles
- Equipment: excavators, forklifts, trailers, farming machinery
- Manufacturing and industrial equipment
How the chattel mortgage process works
Step 1 — Tell us what you’re buying
Give us the vehicle or asset details and the purchase price. We’ll confirm whether chattel mortgage is the right structure or if something else works better for your situation.
Step 2 — We compare 80+ lenders
Not every lender offers chattel mortgage, and rates vary significantly. We know the commercial lenders with the sharpest rates for different asset types and loan sizes. We’ll come back with your best options.
Step 3 — You review and approve
We present your options clearly — rate, term, repayments, balloon payment if applicable. You choose what’s right for your business.
Step 4 — Approval and settlement
We manage the paperwork, coordinate with the seller, and get funds released. Most settlements happen within 24–48 hours of approval.
Chattel Mortgage — Common Questions
What’s the difference between a chattel mortgage and a standard car loan?
A standard car loan is a consumer product designed for personal vehicle purchases. A chattel mortgage is a commercial product for business asset purchases. The key differences are the tax treatment (GST, depreciation, interest deductibility) and the lender panel — commercial lenders typically offer better rates for business buyers.
Can I include a balloon payment?
Yes. Most chattel mortgage structures allow an optional residual or balloon payment at the end of the term. This reduces monthly repayments but requires a lump sum or refinance at the end. Your broker will advise whether a balloon suits your cash flow.
Do I need to have been trading for a certain period?
Most lenders want 2+ years of trading history for a full doc application. If you’re 12–24 months in, low doc options may be available. Your broker will advise what’s possible for your situation.
What is the minimum loan for a chattel mortgage?
Our minimum is $30,000. We specialise in loans of $30,000 and above — for assets that are genuinely worth financing properly.
Can I finance a private sale vehicle with a chattel mortgage?
Yes. We handle private sale chattel mortgages regularly. We manage the ownership verification and fund transfer to protect both parties.
How quickly can I get approved?
Same-day conditional approval is available in most cases. Full settlement typically within 24–48 hours after approval, depending on documentation and seller availability.