difference between lease and chattel mortgage

Let’s break down the thrilling world of finance jargon: a lease is essentially renting a car for a set term and mileage, with no ownership at the end—say goodbye to your vehicle unless you cough up for a balloon payment. In contrast, a chattel mortgage is more like a loan where you own the car from day one but the lender holds the title until you’re paid up.

Leases often come with lower monthly payments but restrictions on usage, while chattel mortgages let you claim GST credits and potentially offer more flexibility if you run a business. However, if you’re the sentimental type who wants to keep the car long-term, a chattel mortgage is the way to go.

Always check the fine print and tax implications, and maybe chat with a financial advisor or visit ServiceCentral for more tailored advice.