A Chattel Mortgage is a type of financing arrangement commonly used in Australia for the purchase of trucks, trailers, and other equipment. It allows businesses to secure a loan for the purchase of a vehicle or equipment while using the asset itself as collateral. In essence, the buyer (borrower) owns the asset outright but the lender holds a security interest in it until the loan is fully repaid.
A hire purchase agreement is a type of financial arrangement that allows a consumer or business to acquire goods by paying for them over time, rather than purchasing them outright. It's often used for purchasing expensive items like cars, equipment, or electronics.
A Rent to Own agreement for trucks and trailers operates similarly to a Rent to Own agreement for property but is tailored to vehicles. In this case, a business or individual rents a truck or trailer with the option to purchase it after a set rental period, often with the rental payments contributing to the eventual purchase price.