See which lenders will give you the best business car loan. Instant online results.
This is a totally free process and will not affect your credit rating.
Borrow from $5,000 to $500,000
Fixed or variable interest rates
Repayments to suit your budget
Terms from 1 month to 5 years
Secured & unsecured options
Own a business and have an ABN
Business is GST-registered
Permanent Citizenship or Residency
Minimum business-operating time of six months
Can provide business bank statements
A business car loan is a type of business finance used to purchase or lease a vehicle. In Australia, most types of business car finance will be secured by the vehicle, and will range between one and five years.
There are a number of different options for financing business vehicles in Australia, each with its own benefits and drawbacks.
Low-doc and no-doc business car loans are vehicle finance options if you are self-employed, or own a small business and can’t supply the required documents to support your application.
There are several types of business car finance in Australia, each with their own terms and pros and cons. Some types of finance are more suitable for a single vehicle, while others are tailored to accommodate businesses requiring an entire fleet of company cars.
If you are a business owner looking to provide employees with vehicles as part of their salary package, you may wish to see whether a novated lease option would fit within your business.
You can use the table below to quickly see which type of loan may be most suitable for you, and learn more about each type of finance on their dedicated pages.
You can apply for business car finance if you intend to use the vehicle for business purposes at least 51% of the time. In Australia, company car finance is used by businesses of all types, and across all industries, to finance everything from a single vehicle to an entire fleet of company vehicles.
If you are purchasing a second-hand vehicle, you may not be able to use it as security on the loan. Below are the most common types of vehicles purchased by businesses in Australia.
With a business car loan, you can purchase almost any type of vehicle for your business. The type of vehicle you purchase, as well as its age, will dictate the amount of interest you pay on your loan. For example, brand-new vehicles will attract the lowest interest rates, while vehicles over eight years old will attract the highest.
Large vehicles will often attract higher interest rates than small vehicles. You can see below how the weight of your chosen company vehicle may affect the interest rate applied to your loan or lease. This is especially important for small businesses or tradies looking to purchase delivery trucks or transport vehicles of a certain size.
Important: This is an example and actual rates may differ.
Now let’s look at how the age of your vehicle may affect your interest rate. You can see that brand-new vehicles have the lowest interest rates and fees, as these vehicles present the lowest amount of risk to a lender — these cars have a lower chance of mechanical failure and a higher resale value.
Important: This is an example and actual rates and fees may differ.
Just as the age of a vehicle will affect the interest rate applied to your loan, the older the car you wish to finance, the higher the fees will often be. You may also pay various establishment or ongoing repayment fees depending on the lender you wish to apply with.
Monthly Account Keeping Fee
Early Termination Fee
Early Payout Fee
Important: These are examples of the types of fees that may be applicable.
Finance brokers can handle the entire loan application process on your behalf in return for a small fee. A finance broker can help you find business vehicle finance options with no monthly repayment fees, though this may limit your available options.
Business vehicle brokers operate in Sydney, Canberra, Melbourne, Perth, Brisbane, Adelaide, Newcastle, and all local areas across Australia.
Applying for car finance is usually quick and easy, and in most cases can be done online. With any type of business finance application, you’ll need to present a lender with sufficient documentation that illustrates your ability to comfortably repay the loan amount.
Most times, just your business bank statements will be sufficient to illustrate your monthly business revenue.
There are two types of applications for business car finance in Australia: streamlined applications and standard finance applications. If you’re applying for vehicle finance to the value of $150,000, you can qualify for the streamlined application if you:
Have been in business 12 months; and
Have an ABN; and
Are registered for GST; and
Have a clean credit history
Are currently renting and can provide a 20% deposit; or
Own a home.
If you’re looking for funding greater than $150,000, or have been in business less than 12 months, you’ll need to apply through the standard finance application process.
If this is the case, you’ll need to provide additional documentation to the lender so they can better assess your application. Here are some tips to improve your chances of getting approved.
Demonstrate an ability to service your business car loan or lease.
Meet the lender's criteria for acceptable credit rating
Meet the lender's criteria for minimum turnover and maximum debt
Provide profit and loss statements and your business balance sheet
Provide details of the asset you wish to purchase
Provide read-only access to your business bank statements
Business car loans are used to purchase or lease a vehicle, and are generally secured by the vehicle with a term between one and five years.
Allow a business to finance a vehicle if it is used for business purposes 51% of the time.
Available from several lenders
Generally secured by the vehicle
Highly popular with tradies and small businesses
Interest rates affected by the age and type of the vehicle
Available from a term of one month to seven years
Can offer significant tax benefits for a business
If you're planning to use the vehicle for more than business purposes at least 51% of the time, the most common type of finance is called a Chattel Mortgage. You can apply for a chattel mortgage online and often be approved within the same day.
You can be approved on the same day, however it's more likely you'll receive an approval within a few days.
The interest rate will depend on the age of the vehicle you want to buy, but can be as low as 5.00% and as high as 16.00%.
Yes, you can get a business car loan in Australia even if you have a bad credit score. If you are an ex-bankrupt or don't qualify for a standard loan due to defaults or a low credit score, you can apply for a bad credit business loan or a bad credit car loan.