A chattel mortgage is a car financing option that gives you immediate ownership of the vehicle. It is generally used by businesses, as it allows you to claim depreciation and other tax offsets.
Use our calculator to determine how much you will pay and compare your car loan options.
What is a chattel mortgage?
A chattel mortgage is when a financier loans money to you for the purchase of a vehicle. You take ownership of the vehicle upon purchase but the lender will use the vehicle as security for the loan until the money is paid back. If you’re looking to enter into this kind of mortgage but want to get an idea of what your repayments will be before you apply, you can use the chattel mortgage calculator to figure out your potential repayments.
How to use a chattel mortgage calculator
A chattel mortgage calculator is easy to use and gives you fast results. All you have to do is enter in the loan amount, the term of the loan, the interest rate, the repayment frequency and the residual payment and percentage (if you chose to pay one). If you already have a chattel mortgage you should enter in the exact numbers as they are stated in the loan agreement, but if you are still shopping for a chattel mortgage you can use estimates to get an approximate repayment amount. Once you fill all of the required fields the chattel mortgage calculator will give you instant results.
- The loan amount refers to the total amount of money you’re looking to borrow or that you’ve already borrowed.
- The term of the loan refers to how long you have to repay the loan.
- The interest rate is the agreed-upon percentage you are paying or will pay to the lender in return for using their money.
- The repayment frequency is how often you make your repayments. This can be monthly, fortnightly or weekly.
- 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.
Questions you might have about the chattel mortgage calculator
How accurate is the calculator?
A chattel mortgage calculator comes up with a repayment amount based on the information you provide using basic arithmetic. If you use exact amounts based on a current loan or a proposed loan agreement your result will be accurate, but if you use estimates in the calculator your result will only be an approximation.
Can I use the calculations to get that exact loan from a lender?
A chattel mortgage calculator is only supposed to be used as an estimate of what you expect your repayment to be. It doesn’t mean that you’ll be offered that exact loan and repayment amount from a lender. Individual lenders will make up their own terms, including the interest rate, based on their findings during the application process and will offer a loan agreement from there.
Use the chattel mortgage calculator below to help in your comparisons.
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.
- Early payout available
- No monthly ongoing fee
- Borrow up to $100,000
100% confidential application
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- Interest rate: 4.67% p.a.
- Comparison rate: 5.22% p.a.
- Interest rate type: Fixed
- Application fee: $400
- Minimum loan amount: $5,000
- Maximum loan amount: $100,000
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