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Chattel Mortgage is a Car Finance arrangement that allows anyone registered for GST and using the cash method of accounting to claim back the GST component on the car they are buying. Because the invoice from the dealership is made out to you, and due to the fact that invoice has been paid you are then able to claim back the full GST amount in your next BAS Statement.
A Chattel Mortgage is essentially the same as taking out a business loan and using the vehicle for security. Unlike a Car Lease whereby the vehicle does not belong to you, your balance sheet will show a debt to a financier whereas with car leasing it does not. Taking out a Chattel Mortgage on an asset means you will have to file a form 309 and a form 350 with the ATO to register a charge against the vehicle if the vehicle is being purchased by a company.
Finding a finance lender or bank who will provide Private Sale Car Finance when buying a used car from a private seller can be challenging. Thats where we can help.
Car Finance can be arranged for Private or Business use. All you need to do is contact us for a pre-approval and then find yourself a car.
Once you have secured the car we will need a copy of the following items
- Registration papers
- The seller’s contact details
- The seller’s drivers license
- An invoice from the seller to include disbursing of funds
- Proof of the sellers bank account details i.e. copy of bank statement or deposit slip
- We will investigate and ensure there is no monies owing on the vehicle
Using a Car Finance Calculator can give you a instant quote so you can estimate the finance repayments of a new car purchase. Enter values for the Loan Amount, Number of Months for Loan, and the Interest Rate, and click the Calculate button.
Bear in mind that finance companies include different ongoing and establishment fees. This calculator is for a guide only, the method of calculating interest varies from finance lender to finance lender, plus the following values would not include associated charges and fees.
A Novated Lease consists of a simple Finance Lease accompanied by a ‘Novation Agreement’ which binds yourself and your employer to the financier to make repayments on the loan out of your gross salary, the money that you spend on the vehicle is therefore is not taxed.
The car under this Novated Lease agreement is effectively provided for you by your employer, even though the repayments are coming out of your income. You may have to pay FBT (Fringe Benefits Tax) which may or may not make a Novated Lease better for you. FBT is calculated based on the amount of kilometres you travel in the FBT year, essentially the more Kms you travel, the lower the FBT.
Certain commercial vehicles are exempt from Fringe Benefits Tax, this may give you a considerable tax advantage under a Novated Lease arrangement.
Because a Novated Lease involves the finance lender purchasing the vehicle on your behalf, the finance company claims back the GST component meaning that you only need to effectively borrow the price of the car minus the GST component. This is how another way a Novated lease can save you money over the course of the loan as opposed to financing the full amount.
A Novated Lease also consists of a residual value which must be paid to the financier at the end of the loan. The minimum residual value is set by the Australian Taxation Office meaning that you may not have a lease with a residual lower than the ATO sets out.
Novated Lease payments incur GST however this can be claimed back by your company depending on your situation. The residual component must be paid at the end of the lease to the finance company; however you may sell the asset to recoup the money owed and then pay the residual out.
Bad Credit Car Finance is car finance designed for individuals who have had problems with credit in the past.
Bad Credit Car Finance is a type of finance used by individuals who have experienced credit problems in the past. Bad Credit Car Finance is used for the purpose of purchasing a new or used vehicle. Bad Credit Car Finance uses the vehicle to be financed as security for the loan. Fixed monthly payments are paid over a set period of time.
Bad Credit Car Finance allows individuals with poor credit history a second chance. At Advance Car Loans our consultants offer the best solution to your bad credit financing needs and we offer Bad Credit Car Finance to those individuals who deserve and need a second chance.
Benefits of Bad Credit Car Finance include the security of a fixed interest rate for the term of the finance. A choice of finance terms ranging from 1 – 5 years. Interest is calculated on the outstanding principal balance, so any additional payments you make reduce the total interest payable. First class financing for individuals with poor credit history and the option to reduce monthly payments with a balloon payment at the end of the term, freeing up cash flow for your day to day purchase.
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