Business car finance

Equipment Loan or Chattel Mortgage

This type of finance is a loan agreement allowing you to borrow funds to buy a car by providing security for the loan by way of a mortgage to the lender (Commonwealth Bank).

If you are registered for GST and use a cash accounting system, you can claim any GST credit entitlement you may have upfront via your Business Activity Statement1.

The benefits:

  • You can finance 100% of the vehicle purchase price, or place a deposit.
  • You are protected from interest rate fluctuations during the term of the loan.
  • You can repay the loan at any time during the term of the agreement.
  • You don't pay GST on the loan or the repayments.
  • If you use your car to generate assessable income, the interest component of the repayments and the depreciation on the car may be tax deductible.