I was on a webinar recently with Ashley Smith from ASA finance group, and here’s what he had to say in regards to Chattel Mortgage vs. Finance Lease for vehicle finance –
Ashley: 98% of the stuff I write is a chattel mortgage. Finance lease is a little outdated. I can’t comment on the tax side of things, but just one thing that you’ll notice with the finance lease is that with the GST on a chattel, you can claim back the GST immediately in your next BAS. With a finance lease, you’re claiming back the GST every month over the terminal line, and that’s not always a desirable outcome for some clients. So that’s the first thing.
The other thing with the finance lease, It’s typically not something we do with the major lenders. The chattel mortgage have the cheapest rates. The best way we see to go is through a chattel, not a finance lease.
Watch the full webinar FREE on my e-learning page at https://learning.benwalker.com/courses/asset-finance
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