Business Car Loans
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Business Car Loans
We make both purchasing and financing a car simple. Our finance experts will secure you a low rate from our panel of over 50 lenders, providing you the finance you need for your car purchase.
3 steps and you’re on your way
We know finance feels complicated. That’s why we make it three steps, no stress.
1. Apply Now
2. Choose Your Car
3. Sign & Collect
Can You Buy A Car With A Business Loan?
Yes you can! As long as you have an Australian Business Number (ABN), you can afford the loan repayments, and you will be using the vehicle in your business at least 51% of the time. The rest of the time, you can drive the car for your personal private use if you want.
Vehicle finance for business use is very common in Australia, just like it is for cars that are solely for personal use. It enables you to get the car you need for your business now, rather than waiting.
What Is A Business Car Loan?
A business car loan gives you the finance you need to buy a vehicle to use in your business. It could be any type of car – like a ute, sedan, SUV, hatchback, station wagon, people mover or light commercial vehicle – whatever best suits your business needs.
Different types of businesses have different car needs. Buying a vehicle for business purposes makes both practical and financial sense.
What Are The Benefits Of A Business Car Loan?
There are two main benefits of this loan. Besides the obvious benefit of helping you obtain a vehicle for your day-to-day business travel and tasks, a business car loan can also reduce the amount of tax you pay. Business car loan interest and lender fees are tax deductible.
You can claim up to 100% of your business car loan interest and fees, depending on the percentage of your vehicle usage for business purposes. If you use it exclusively for your business, you can claim all of the loan interest and fees as a tax deduction.
If you drive your business vehicle for private use as well, you can claim the proportion of business use (a minimum of 51%). The government is subsidising the purchase of your business vehicle, so you can take advantage of any tax breaks you can get by financing your car.
You will need to structure your loan the right way to do this, so it’s best to contact one of our experts.
What Is A Business Car Loan Term?
Business car loan terms range from 1 to 7 years to suit different business cash flow needs. if you want to lower your repayments or buy a more expensive business vehicle, it makes sense to take out a business car loan with a longer term.
On the flip side, if you can afford higher repayments or want to buy a less expensive vehicle, you can take out a shorter business car loan term to pay it off faster. you’ll own the car sooner and also save on interest.
Some lenders will only approve business loans for new vehicles, while others will approve finance for both new and used cars. however, used cars usually have shorter finance terms available.
Our business car loan experts know which ones approve business loans for used cars and which ones don’t, so once again it’s best to get in touch for advice. it will save you time and the hassle of researching the market yourself. we do it for our car buying clients for a living.
What Are Business Car Loan Rates?
There’s no simple answer to this question because there’s a huge range of lenders in the market. there are also different types of business car loans available with different interest rates, features and benefits.
For example, secured loans and unsecured loans. secured loans have lower interest rates, but your vehicle can be repossessed by the lender if you don’t make your repayments. it can’t be repossessed if you take out an unsecured loan. there’s also fixed and variable interest rates. fixed rates stay the same even when market rates move, so they give you repayment certainty.
Even when you are comparing the same type of loan from different lenders, you should always compare the comparison interest rate. this is the interest rate plus the cost of lender fees. the comparison rate shows you the real cost of any loan. lenders must advertise it on their products to comply with australia’s credit legislation.
It’s best to contact one of our experts for advice on the right business car loan for your specific situation. they know all the latest lender offers and they can help you to do a business car loan comparison. this can help you to decide the best business car loan for your needs.
Business Car Loan Calculator
You can use our business car loan calculator to work out your repayments for different loan terms, amount, interest rates and repayment schedules (weekly or monthly). you should choose a repayment schedule that suits your business cash flow. dividing a monthly repayment amount into weekly payments can help you to pay off your loan faster and save interest.
The more you borrow, the higher your repayments will be for the same loan term at the same interest rate. besides increasing your loan term or buying a cheaper vehicle, the other way you can reduce your business car loan repayments is by including a balloon payment. this is a larger final payment at the end of your loan term that reduces your regular repayments.
Can I Get A Business Car Loan If I Have A Bad Credit History?
Yes, it’s possible with some lenders. but a word or warning. don’t apply to lenders if you have a bad credit history without getting our expert advice first. if you do and your application is declined, it will further damage your credit score, making it even harder for you to get both car and equipment finance for your business.
Lenders will check your credit history as part of the application assessment process. our business car loan experts know which lenders are more likely to approve bad credit history loan applications. they can also give you tips for how to improve your credit score before you apply, so that you can increase your chances of getting approved.
What Are Business Car Loan Requirements?
Besides your abn, the main thing that any lender will assess is that you can afford and will make your business car loan repayments.
Information most lenders will require to make this assessment for any business vehicle and equipment loan applications includes the amount you want to borrow, the loan term, and evidence of your business income, cash flow, assets and liabilities. your cash flow show should demonstrate that you can afford to make your business car loan repayments.
The best evidence of your financial situation is your most recent business tax returns (such as business activity statements) and financial statements prepared by your accountant. lenders will also require you to provide proof of your identity.
Ideally, you should try and get a pre-approval for your car loan for business purposes. in other words, get your car finance approved before you start looking. that way, you will know the price of the vehicle you can afford.
This will not only save you time looking for a business car that’s within your budget, it will also give you negotiating power with both dealers and private sellers. some dealers and private sellers will offer discounts for buyers with pre-approved finance.
Low Doc Business Car Loans
Low doc car loans for business are an option that some lenders offer, but not all. Some even provide no-doc loans. Low doc is short for low documentation, and no doc is short for no documentation. Both low-doc and no-doc loans have higher interest rates than standard business car loans because they are higher risk for lenders to approve. You should avoid them if you can for that reason.
However, you may need to apply for a low-doc or no-doc loan if you can’t provide all of the documentation a lender requires for a standard business car loan. For example, if your business has been operating for less than a year. If you’re in this situation, contact one of our experts for advice to help you with your business car loan application.
How To Get A Business Car Loan
You can apply for a business car loan online with us in less than 5 minutes. if you can supply us with all your documentation, we can usually get an approval in an hour. then you can go car hunting! we can even help you find a car through dealers who offer fleet pricing for both new and used vehicles.
Or if you want to speak with one of our car loan experts first, simply call us on 1300 358 358. we will take the time to understand your needs before providing you with the right advice. we’d also be happy to answer any questions you have.
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Get access to new vehicles at fleet prices and a large selection of used cars
Australia’s Finance Specialists
At National Loans, we make borrowing simple. As trusted experts in loans and asset finance, we partner with Australia’s leading lenders to secure low-rate loans and fast approvals.
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FAQs
Can you help me find a car ?
Yes, we have fantastic relationships with a large number of car dealers , giving us access to fleet pricing on new vehicles and a large selection of used cars.
Who can Apply ?
How long does the application take ?
This is dependant on your circumstances. After receiving any supporting documents we may need, in most cases we can have an approval in 1 hour.
What if I don’t want to apply for a loan online ?
That’s absolutely fine, give our friendly team a call on 1300 358 358.
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