Key takeaways
- Use the calculator to test loan terms and balloon payments to see the true cost over the loan, not just monthly.
- A chattel mortgage may give you GST credits and deductions on interest and depreciation - check with your accountant to maximise these.
- Don't just chase the lowest rate - fees, balloon limits and penalties can make "cheap" loans cost more.
Your Results
Monthly Repayment
$0.00
Total Interest Payable
$0.00
Total Payment Amount
$0.00
Financed Amount
$0.00
Total of Monthly Payments
$0.00
Lease Term
0 months
Payment Breakdown
- Total of monthly payments: $0.00
- Plus residual payment: $0.00
- Total amount paid: $0.00
Loan Balance Chart
If you need more help using the calculator, please click here.
What is a chattel mortgage?
A chattel mortgage is effectively another term for a secured business car loan. This means that your business borrows money from a lender to fund the purchase of a vehicle and you then make regular repayments until the loan is paid off.
Unlike other forms of business vehicle finance, your business takes ownership of the vehicle immediately, and the vehicle is used as collateral against the loan.
How to use a chattel mortgage calculator
These are the details you'll need to provide to calculate your repayments:
- The purchase price refers to the total amount you need to borrow to cover the cost of the vehicle.
- The leasing term refers to how long you have to repay the loan (the loan term).
- The interest rate is the rate of interest you'll make on the amount you borrowed.
- The residual amount and percentage are optional fields and should only be filled in if you chose to make a residual payment. A residual payment is a lump sum that is paid at the end of the loan term.
Clint gets a chattel mortgage
Clint has decided to purchase a vehicle through a financier. He understands that the vehicle will be used as security for the loan so he wants to make sure he chooses a loan that he can repay easily. In order to make sure he can make the repayments, he turns to the chattel mortgage calculator to get an idea of what his repayments will be.
He is looking to borrow $10,000 and hopes to get a 6% interest rate, a three-year loan term and he wants to make monthly repayments. He doesn’t plan to opt for a residual payment so he leaves those fields empty when using the calculator. Based on this information, Clint will be paying $302.71 each month towards the loan. He can now take that information and decide if he’d like to look for another loan or choose to apply for this one.
Chattel mortgage GST & tax benefits
When you run the numbers in the chattel mortgage calculator, remember that the repayments don't tell the whole story. Chattel mortgages often come with tax advantages that can lower your real cost of ownership.
The interest you pay may be deductible as a business expense, and if your business is registered for GST you could claim input tax credits on the purchase price of the vehicle. These credits are reported on your BAS for the relevant period.
GST credit cap: The GST you can claim on a car is limited to 1/11th of the ATO's annual car depreciation cost limit.
2025–26 limit: The cap is $69,674, meaning the maximum GST credit available is $6,334.
Business vs private use: You can only claim the portion of GST and deductions that relates to business use.
Example using the calculator
| Vehicle price | Claimable GST credit |
|---|---|
| $50,000 | $4,545 (full GST credit) |
| $100,000 | $6,334 (capped at ATO limit) |
By combining the calculator with these GST rules, you'll get a clearer idea of how much your repayments really cost after tax benefits.
Questions you might have about the chattel mortgage calculator
Compare car loans
Unless the vehicle is intended to be used for business purposes, and you want to take advantage of the tax offsets offered by a chattel mortgage, you may be better suited applying for a normal car loan.
Compare other products
We currently don't have that product, but here are others to consider:
How we picked theseFinder Score for car loans
To make comparing car loans even easier we came up with the Finder Score. Interest rates, fees and features across 200+ car loan products and 100+ lenders are all weighted and scaled to produce a score out of 10. The higher the score, the more competitive the product.
Sources
Picture: Shutterstock
More resources on Finder
Ask a question
6 Responses
More guides on Finder
-
Green Car Loans Australia
Some lenders offer a better deal if you get a loan for an eco-friendly car. See how they work and compare car loans here.
-
Car loans for pensioners
On a pension but need a new car? There are still many choices if you know where to look.
-
Compare car loans for classic cars
Want to buy a classic car but don't have the ready money? There are still financing options available for classic vehicles. Find out what loans you have to choose one and which one will work best for you.
-
Tesla Superchargers Map: Where you can charge in Australia
Find out the extent of Australia's Tesla Supercharger network with our complete map of every charging station.
-
IMB car loans
Find out how to take advantage of competitive rates, no monthly fees and an easy application all while getting the finance you need with IMB loan options.
-
People’s Choice Credit Union secured and car loans
People’s Choice offers competitive loans with pre-approval, rate discounts and other features to help put you behind the wheel of a new or used vehicle.
-
Should I refinance or pay my novated lease balloon payment?
If you've come to the end of your novated lease and you are left with a balloon payment, you might be wondering whether to refinance that into a personal loan or take on another novated lease.
-
First Option Bank Car Loans
Lock in a competitive rate for as long as five years with First option Bank – you can finance both new and used car loans.
-
BankSA Car Loans Comparison
BankSA offers a range of loans for your next car. If you're looking to finance a new or used car you can consider a secured or unsecured personal loan from BankSA, both with competitive rates. Compare and apply today.
-
Gateway Bank Car Loans
If you're in the market for a range of loans, Gateway Bank might have an offering worth considering. You can use your car as security and get a lower rate with both new and used vehicles, so compare and apply today.
I want to purchase a mobile home and I would like to borrow $20,000. What is the maximum time and rate for repayment?
Hi Tammy!
Thanks for the comment.
You may get in touch with a mortgage broker for a thorough advice on your repayments based on your specific circumstances. A mortgage broker is a professional who compares and helps you apply for home loans on your behalf. A good mortgage broker will give you personalised service all the way through to settlement.
Hope this clarifies.
Cheers,
Jonathan
Is there a cooling off period for channel mortgage finance?
Hi Stichedup,
Thanks for your question.
This is possible but there would need to be a cooling off period specified in the contract for it to apply.
I hope this has helped.
Thanks,
Elizabeth
Chattel mortgage interest rates, current rate for new ford ranger 4×4
Hi Mike,
Thanks for your comment. As finder.com.au is a comparison service, we can’t provide you with the chattel mortgage rates. You’ll need to contact a lender to find out more.
Cheers
Matt