Chattel mortgage interest rates are generally lower than that of consumer car loans. At Savvy, our chattel mortgage interest rates start from 5.51%p.a. (with a 6.43%p.a. comparison rate.) The interest rates on chattel mortgages can vary. This guide tells you all you need to know about chattel mortgage interest rates and the different terms you may see when researching chattel mortgages and business car loans.
Secured Car Loan
Some balk over chattel mortgages because the interest rates are significantly lower than consumer car loans, especially unsecured consumer car loans. That’s because a chattel mortgage is a type of secured loan, and a secured loan ties the value of the loan to a specific asset, in this case a car. This gives the lender or financier peace of mind in the case of default. A security (or chattel in this case) may be repossessed and sold if a borrower defaults. The saving on the lower risk posed by the transaction is passed to the borrower.
Another term is comparison rate, which is usually higher than a standard interest rate. That’s because a comparison rate includes all the ongoing fees and charges associated with a loan to give you a clearer picture of how much the interest rate really costs compared with other loans of similar amounts, lengths and structures. Comparison rates are compiled into a comparison rate schedule, which you can use to see how much loans cost at a glance.
Bad credit chattel mortgages
often have higher interest rates as they are considered “sub-prime” car loans. Bad credit car loan interest rates range in the double figures, as high as 30%p.a. in some cases. This is to offset the risk of lending money to people with a dubious track record in financial matters. Many brokers and lenders will give people with bad credit histories a second chance at finance, which gives them an opportunity to correct their credit and repair their financial past.
The first step to figure out how much a chattel mortgage will cost is to use a chattel mortgage repayment calculator or get a quick and easy online quote. Savvy Chattel Mortgage offers quotes for FREE and there’s no obligation to apply.
To get the latest updates on chattel mortgage interest rates, please call our team of financial professionals on 1300 974 066. We search through over 25 of Australia’s best chattel mortgage lenders to find you the lowest interest rates on business car loans. We promise you’ll do better with Savvy!