Drive Select Finance compares 30+ lenders to secure vehicle and asset finance rates from 5.68% p.a., with fast 24-48 hour approvals and zero credit score impact on initial quotes for customers across Australia. Both let you finance a business vehicle while claiming tax benefits, but they work differently. Compare chattel mortgage and hire purchase before you apply.
If you're financing a work vehicle through your business, you've likely come across both chattel mortgage and hire purchase as options. Both let you use the vehicle from day one and offer tax advantages — but the structure and ownership timing are genuinely different. Here's how to compare them before you apply.
Chattel Mortgage: You Own It From Day One
With a chattel mortgage, the lender provides funds to purchase the vehicle, and you own it outright immediately — the lender simply takes a "mortgage" (security interest) over the vehicle until the loan is repaid. This structure is popular with GST-registered businesses because the GST on the purchase price can typically be claimed upfront, and the vehicle can be depreciated as a business asset from day one.
Hire Purchase: The Lender Owns It Until the End
With hire purchase, the finance company technically owns the vehicle for the term of the agreement, and you make instalments to eventually take ownership at the end. You still use the vehicle for business purposes throughout, but the ownership timing — and therefore some of the tax treatment — differs from a chattel mortgage.
💡 Which One Suits Your Business?
Chattel mortgages are generally more common for GST-registered businesses wanting to claim GST upfront and depreciate the asset immediately. Hire purchase can suit businesses with different cash flow or tax timing preferences. The right structure depends on your specific accounting position — we recommend confirming with your accountant, and comparing lender terms with us in parallel.
How Do the Repayments Compare?
Both structures typically offer fixed repayments over a set term, often with the option of a balloon payment at the end to lower your regular instalments. Rates and terms vary meaningfully between lenders, so comparing your options — rather than accepting the first offer from a dealership or single lender — can make a real difference to your total cost.
Apply Online to Compare Both Structures
You can apply online for a free comparison of chattel mortgage and hire purchase options across our panel of 30+ lenders. We'll help you understand which structure and lender combination best fits your business's cash flow and tax position.
Get a free, no-obligation quote today
30+ lenders compared. No credit impact. Expert brokers ready to help.
