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Business Car Loans with Money Matchmaker™

Compare your best business car loan options from over 40 lenders in 60 seconds.

“Super quick, I got lots of offers. All I had to do was choose which one! I went with Wisr because they were the cheapest. Thanks” - Angela

Business Car Loans

It's always an exciting time as a business to be buying a car.

With business car loans, you get to claim the GST back on the car and can also claim the depreciation back on your BAS.

Here's how they work

  • Allows a business to finance a vehicle if it is used for business purposes 51% of the time.
  • Secured against the car being financed
  • Lower interest rates & fixed repayments
  • Highly popular with tradies and small businesses
  • Interest rates affected by the age and type of the vehicle
  • Available from a term of one year to seven years
  • Can offer significant tax benefits for a business

Business car loan rates are extremely competitive right now, just below 3% in some instances plus you have the instant asset write off incentive.

Shopping around for the right business car loan can save you thousands of dollars in interest and fees.

What lenders are looking for

As a business owner, lenders will consider your living situation.

Living Situation - Commercial Finance

How lenders view credit history

Lenders will often review the personal credit scores of each Director as well as the company credit score.

credit history applicant

The type of car lenders prefer to finance

New business vehicles are preferred but you can still finance older cars or bigger vehicles too.

age of car being purchased

Key Features

  • Borrow from $5,000
  • Fixed rate, secured loans
  • Repayments to suit your budget
  • Terms from 1 to 7 years

Who is eligible?

  • 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

How to choose a Business Car Loan

There are several types of business car finance in Australia, each with its 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.

You can use the table below to quickly compare popular business car loans and learn more about each type of finance on their dedicated pages.

You can read our guide to compare the benefits of a chattel mortgage vs lease vs hire purchase.

Compare types of Business Car Finance

TermProsCons
Chattel Mortgage1-7 yearsBusiness Tax BenefitsVehicle is recorded on your balance sheet
Hire Purchase1-7 yearsYour business will own the car at the end of the termMay require an upfront deposit
Operating Lease1-7 yearsLease is a tax-deductible business expenseYour business does not own the vehicle at the end of the term
Finance Lease1-7 yearsOption to own vehicle at the end of the termResponsible at the end of term for disposal
Small Business Loanup to 5 yearsFast access to moneyCan be expensive

In some cases, you may be able to claim interest on business car finance. You can use our tax refund estimator to see how interest deductions may increase your refund.

Low Doc Car Loans with Money Matchmaker

Self-employed (sole trader) Business Car Loan

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.

Most common small businesses using vehicle finance in Australia

Small businesses A-ESmall businesses F-LSmall businesses M-Z
Arborists Builders Carpenters Caterers Cleaners Couriers ElectriciansFencers Glaziers Handymen HVAC technicians Labourers Landscapers LocksmithsMobile Mechanics Painters Plasterers Plumbers Pool Servicing Real Estate Agents Removalists Tilers

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.

Common business vehicles purchased by Australian businesses

Small vehiclesLarge vehicles
Cars Motorcycles Work Vans Work UtesDelivery Vans Trucks and Trailers Caravans Buses
Chattel vs Lease vs Hire Purchase with Money Matchmaker

Cheapest Business Car Loans

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.

Vehicle type vs Rates

AssetNew or usedLoan termLoan amountInterest rates
Under 4.5 tonneNew3 years$30,0004.79%
Over 4.5 tonneNew3 years$30,0005.50%

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.

Vehicle age vs Rates

Vehicle ageInterest rateFees
Brand-new4.00%$0
1-2 years old5.50%$0
3-5 years old6.50%$500
5-8 years old7.00%$750
8+ years old8.50%$1,500

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.

  • Establishment Fee
  • Origination Fee
  • 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.

Best Business Car Loan options

How to qualify and apply

Applying for business 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

Here are the most popular business car loan questions people are asking:

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How can I buy a car through my business?

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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.

faq

How long does it take to get approved for a business car loan?

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You can be approved on the same day, however it's more likely you'll receive an approval within a few days.

faq

What is the average interest rate for a business car loan?

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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%.

faq

Can I get a business car loan if I have bad credit?

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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.

Address

Money Pty Ltd,
Suite 3, Level 2,
1 Taylor Street,
Moorabbin, VIC, 3189 Australia

Company

Money Pty Ltd trading as Money
ABN: 42 626 094 773
ACL: 528698
AFCA: 83955

© Copyright 2021 Money Ltd.



Disclaimer

Money Pty Ltd (trading as Money.com.au) provides information about credit products and is authorised to do so as the holder of Australian Credit Licence 528698. Money.com.au does not compare every Lender in Australia. We are not a broker or credit provider and when we provide information via this website, we are not providing you with a recommendation or suggestion about a particular credit product. When you apply for a credit product via the Money.com.au website, you are not applying with us, you are applying directly with a Lender Partner. Before entering into any credit product from one of our Lender Partners, you should confirm the rates and product information with the Lender. All information on this website is general advice only and does not take into account your objectives, financial situation or needs. You should consider whether this advice is right for you and we encourage you to seek independent financial advice.