Business Car Loan

A business car loan is a way to purchase a vehicle for you business while spreading the cost out over time.

Overview

A business car loan is a way to purchase a vehicle for you business while spreading the cost out over time. You will own the vehicle from day one, but it's used as security for the loan (similar to a house and a mortgage). Once the loan is paid off, the car is fully yours with no strings attached. Perfect for staying on budget while growing your business. These types of loans are also sometimes referred to as Chattel Mortgages. Did you know your business assets might qualify for the government’s instant asset write-off or temporary full expensing? These programs let eligible business owners claim an immediate tax deduction for certain asset purchases. Check out the ATO website for all the info.

Cash Flow Facilities

Asset and Equipment Finance

Property Finance

Typical Uses

Upgrading older vehicles.
Purchasing new vehicles.
Expanding your business.
Reducing the amount of cash spent on big ticket items.

Pros

Frees up cash for other areas of the business.
Existing debts don’t usually affect approval.
Can sometimes qualify for government tax incentives.
Interest rates are often lower than unsecured loans.
Selling your old vehicle can give you a cash boost.

Cons

Stricter terms compared to unsecured loans.
Early loan payouts may incur fees depending on the lender.
Some lenders may include extra fees and charges.
If the vehicle’s value drops, you might owe more than it’s worth.

Think About

Is maintaining my current vehicle costing too much?
Am I comfortable with a 3–7 year loan?
If I'm selling my current vehicle, do I want the cash to go to the loan or into my pocket?
Is a new vehicle part of business expansion?

Typical Uses

Upgrading older vehicles.
Purchasing new vehicles.
Expanding your business.
Reducing the amount of cash spent on big ticket items.

Pros

Frees up cash for other areas of the business.
Existing debts don’t usually affect approval.
Can sometimes qualify for government tax incentives.
Interest rates are often lower than unsecured loans.
Selling your old vehicle can give you a cash boost.

Cons

Stricter terms compared to unsecured loans.
Early loan payouts may incur fees depending on the lender.
Some lenders may include extra fees and charges.
If the vehicle’s value drops, you might owe more than it’s worth.

Think About

Is maintaining my current vehicle costing too much?
Am I comfortable with a 3–7 year loan?
If I'm selling my current vehicle, do I want the cash to go to the loan or into my pocket?
Is a new vehicle part of business expansion?