Vehicle finance

Mortgage Achievers can arrange finance for cars, boats, motorbikes, jet skis and other registrable items. The most common form of financing is through a secured loan. The asset purchased is used by the lender as security for the loan often allowing a lower interest rate in return. Secured loans (consumer mortgages) are designed for people purchasing for private use. Mortgage Achievers can arrange finance for consumer car loans and commercial car loans.

Our products include:

  • chattel mortgage
  • hire purchase
  • novated lease
  • consumer car loans

Leasing, hire purchase and chattel mortgage loans are available for vehicles used for at least 50% business needs. At Mortgage Achievers we make sure the client application meets all lending criteria to provide the best chance of securing approval.

Vehicle leasing

A car lease is a commercial finance product which enables a client to have the use of a vehicle along with the benefits of ownership while the financier retains actual ownership of the vehicle.

The financier purchases the vehicle on behalf of the client, who then leases the vehicle back from the financier. The client pays a fixed monthly lease rental for the term of the lease.

At the end of the lease the client can pay the residual to the financier and take ownership of the vehicle, trade it in or re-finance the residual and continue the lease.

Car Leasing is suitable for companies, partnerships, sole traders and individuals where the leased vehicle is used for income producing purposes. GST is charged on the monthly lease rental and on the residual value at the end of the lease. Where the client is registered for GST, they can claim some or all of the GST contained in the lease rental and the residual value as an input credit on their next Business Activity Statement.

Where the amount financed is below the depreciation limit the customer claims the lease rental as a tax deduction. Above the depreciation limit, interest charges on the lease and depreciation up to the value of the depreciation limit can be claimed.

Vehicle leasing has the advantages of:

  • Flexible contract terms ranging from two to five years.
  • Fixed interest rate and monthly lease payments.
  • Ease of budgeting by calculating costs in advance.
  • Ability to lower repayments by adjusting residual.
  • Tax reduction.
  • Lower monthly payments on the car value because the GST is claimed back by the financier.
  • Flexibility of making advance lease payments for tax deduction or cash-flow purposes.
  • Lower interest rates by securing the lease against the vehicle.

Novated lease

A novated lease is a three way agreement between the employer, employee and the lender.

The employer, employee and financier sign a novation agreement whereby the employer agrees to take on the employee’s obligations under the lease. Under this arrangement, the employer makes the monthly lease payments on behalf of the employee. Should the employee leave his or her employment for any reason, the novation agreement ceases and the obligations assumed by the employer revert to the employee as the registration is in the employee’s name.

The choice of vehicle remains with the employee ensuring a vehicle to fully meet their needs.

The employer deducts a portion of the vehicle financing and running costs from the employee’s pre tax income reducing the employee’s taxable income and the amount of tax payable. There is no need for the employee to do anything on their tax returns as the employer and lender attend to this.

If a vehicle is purchased using another form of finance, 100% of the costs will be taken from after tax income providing no tax benefit at all.

With the option of a fully maintained lease, vehicle running costs such as maintenance, registration, insurance costs and projected fuel can also be included in regular salary deductions.

Mortgage Achievers can also assist with finding the right vehicle as well as offering fleet discounts on the purchase price and running costs.

Chattel mortgage

Chattel mortgage is an ideal way for individual business customers to maximise the taxation benefits gained from financing a new vehicle. It is designed for those sole traders and partnerships who account for their business operations on a cash basis and can be used for purchasing a new vehicle or upgrading an existing vehicle.

Hire purchase

Commercial hire purchase agreements are typically used by individual business customers who wish to place a deposit into their finance contract or nominate the value of the balloon (final instalment) on their contract. This type of contract offers maximum flexibility to set the monthly repayment amount to suit individual circumstances.

Car loan

A car loan is suitable when the vehicle is used wholly or predominantly for private purposes. This means that the vehicle is used privately for more than 50% of the time. The motor vehicle is the only security needed, although in some circumstances a guarantee may also be required.

The loan term and balloon payment can be tailored to suit individual circumstances.

Operating lease

Allowing you to preserve working capital with 100% financing. An operating lease allows you to rent the vehicle or equipment needed for a fixed period and return without any residual risk to the business.


Under both a chattel mortgage and commercial hire purchase agreement, the goods and services tax (GST) is contained in the purchase price of the vehicle but does not apply to the monthly repayment or balloon (final instalment) on the contract.

Normally, those individual business customers who are registered for GST purposes and enter into a commercial hire purchase agreement will apply Input tax credits (ITCs) to claim back some or all of the GST (up to a maximum amount of $5,183) contained in the price of the motor vehicle.

Suitable vehicles

Passenger and light commercial vehicles are suitable for novated leasing, subject to the employer’s leasing policy. Generally heavy commercial vehicles and motor bikes are excluded.

Used vehicles may be suitable for a novated lease provided they are not more than 8 years old or have more than 200,000 km on the odometer at the end of the lease. The vehicle must be valued at more than $10,000 (excluding GST) and currently roadworthy with current registration papers.