FAQs

As long as the vehicle is being purchased for primarily business purposes, in general, all cars and vehicles are eligible for business car loans. This includes work vehicles such as utes, vans, cab chassis and other light delivery and other vehicles. The full range of cars are usually eligible including SUVs, 4WDs, wagons, passenger cars, hatchbacks and sedans.

New and used cars can be financed. The condition and/or age of a used car may be taken into consideration by a lender when offering a car loan. Thresholds may also apply to minimum and maximum loan amounts, depending on individual lender requirements and individual applications

Businesses have the choice of a number of loan types to finance their vehicles: Chattel Mortgage, Leasing, Commercial Hire Purchase and Novated Car Lease. These loan products, known as commercial finance facilities, are universal in their structure and are applicable (with the exception of Novated Car Leasing) across other business asset acquisitions such as trucks and equipment.

Commercial finance facilities are structured to suit either cash accounting or accruals accounting method and deliver tax benefits in varying ways. There are differences in the ownership of the car throughout the loan term though with each loan, the borrower has full use of the car and is responsible for all operating expenses.

The car must be predominately used (more than 50%) business use and the minimum requirement is to hold a current ABN. Common business chattel loans include Chattel Mortgage, Commercial Hire Purchase (CHP), leasing and Rent to own.

Lenders can request a range of financial documentation in the application. This may/usually includes:- the business registered for GST, BAS returns, business financials (income/expenditure), annual accounts, income tax returns, assets/liabilities details and other debts. For business that do not have all the documents to meet these guidelines there are low docs and no doc finance options.