Leases & Chattel Mortgages

A consumer lease is generally used for the purchase of assets such as cars and/or other goods.  Under a consumer lease the borrower doesn’t own the product they are using, rather they lease it for an agreed regular payment for an agreed period.  At the end of that time they generally have the option to pay an additional amount to attain ownership, return the item or upgrade the product and lease for a newer model. 

A chattel mortgage differs in that the lender provides funds to the vendor, on behalf of the purchaser, for a vehicle (or asset), and they take ownership of the vehicle at the time of purchase. The lender uses the vehicle as security for the loan, by registering their interest over it.  Once the loan is paid out, the security interest is removed giving the customer clear title to the vehicle.

A chattel mortgage for a business client who can demonstrate property ownership can often be fast tracked with many lenders.