A chattel mortgage is a legal term used to describe a loan arrangement in which an item of movable personal property secures the loan. The movable property, or chattel guarantees the credit and is a finance product for business or where the use is predominantly for business purposes.
Chattel Mortgages work much like a secured car loan; the lender will provide the funds for you to purchase the vehicle, and you take ownership at the time of purchase. The lender takes a ‘mortgage’ over the car as security for the loan and once the contract is completed, you own the vehicle outright. The tax implications of a Chattel Mortgage are that the GST is charged on the purchase price of the car but not the monthly rental or the contract balloon (final instalment). Under a Chattel Mortgage, the customer can claim the interest charges on the contract and depreciation up to the Depreciation Limit as defined by the ATO from time to time as a tax deduction.
Fleet Saver is the latest product developed by NEXT that has been specifically designed for small to medium businesses. The system allows small to medium businesses to manage their vehicle fleet far more efficiently. Fleet Saver provides a professional reporting and tracking system that alleviates the need for paperwork, saving you time and money.
Working vehicles can be classified into two categories, those owned or driven by the business or vehicles used by employees for business, the latter scenario often an area where the correct claims are not recorded on vehicle expenses. Fleet Savers makes it easy to manage and maintain these records in compliance with regulatory requirements, you won’t miss another claim.
Our team at NEXT can show you how Fleet Saver is a better way to purchase your business vehicles by providing centralised vehicle and driver information for fleet or pool vehicle managers and streamlining all internal processes.
We offer Fleet Saver product as a fully maintained Chattel Mortgage making your business vehicle purchasing and administration EASY.