Tax Advantages
Why business car finance makes sense
Structure your vehicle purchase for maximum tax efficiency.
GST Credits
Claim back the GST on your vehicle purchase (1/11th of GST-inclusive price).
$50k car = ~$4,500 GST credit
Depreciation
Claim depreciation on the vehicle over its effective life as a tax deduction.
Reduces taxable income
Interest Deduction
Interest paid on business car finance is tax deductible.
Lowers effective interest rate
Running Costs
Fuel, insurance, servicing, and running costs are all deductible for business use.
Ongoing tax savings
Important: Tax benefits depend on your individual circumstances and business structure. We always recommend discussing with your accountant to understand the specific benefits for your situation. We can explain how each finance structure works, but we're not tax advisors.
Finance Options
Business car finance structures explained
Each option has different benefits. Here's how they compare.
Chattel Mortgage
You own the car from day one. Most popular choice for ABN holders.
Best for: Most ABN holders & sole traders
Commercial Hire Purchase
Hire with intention to purchase. Similar benefits to chattel mortgage.
Best for: Companies & partnerships
Novated Lease
Salary package your car through your employer. Pay with pre-tax dollars.
Best for: Employees with packaging
| Feature | Chattel Mortgage | Hire Purchase | Novated Lease |
|---|---|---|---|
| Ownership | Immediate | At end of term | Optional at end |
| GST Credits | ✓ Yes | ✓ Yes | Via employer |
| Depreciation | ✓ Claimable | ✓ Claimable | N/A |
| Interest Deductible | ✓ Yes | ✓ Yes | Included in package |
| Balloon Option | ✓ Available | ✓ Available | ✓ Residual |
| Best For | ABN holders, sole traders | Companies, partnerships | Employees |
Who We Help
Business car finance for all types
From sole traders to large companies, we have finance options to suit.
Sole Traders
ABN holders working for themselves
Partnerships
Business partners sharing ownership
Pty Ltd Companies
Registered company vehicles
Trusts
Trust-owned business vehicles
Tradies
Utes and work vehicles
Sales Reps
Company car allowances
Contractors
Self-employed professionals
Small Fleets
Multiple vehicle businesses
The Process
How business car finance works
Simple steps to get your business vehicle financed.
Tell Us Your Needs
What vehicle? What business structure? We'll discuss your situation.
We Explain Options
Chattel mortgage vs hire purchase vs lease - we'll explain what suits you.
Get Approved
We submit to our lender panel and find you the best rates.
Settle & Drive
We handle the paperwork. You pick up your vehicle and get to work.
Common Questions
Business car finance FAQs
Answers to the questions business owners ask most often.
What is chattel mortgage and why is it popular for business cars?
A chattel mortgage is a business loan where you own the vehicle from day one while making repayments. It's popular because you can claim GST credits on the purchase, claim depreciation as a tax deduction, and interest is tax deductible. It's the most common structure for ABN holders buying vehicles in Australia because of these tax advantages.
Can I get business car finance with a new ABN?
Yes, we work with lenders who finance new ABN holders. While some lenders require 2+ years trading history, others will consider businesses from 6-12 months old with appropriate documentation. New businesses may need to provide additional information like BAS statements, bank statements, or a letter from their accountant.
What's the difference between business car loan and consumer car loan?
Business car loans (like chattel mortgage) are for vehicles used primarily for business purposes and offer tax benefits including GST credits, depreciation, and interest deductions. Consumer car loans are for personal vehicles and don't offer these tax advantages. If you're buying a car for your business, a business loan structure is usually more beneficial.
How much can I claim on tax for a business car?
With a chattel mortgage for business use, you can typically claim: GST credits on the purchase price (1/11th of GST-inclusive price), depreciation of the vehicle over its effective life, and interest on the loan as a business expense. The luxury car tax threshold and depreciation limits may apply. Always consult your accountant for advice specific to your situation.
What documents do I need for business car finance?
Typical requirements include: ABN registration, 2 years of tax returns or financials (some lenders accept less), recent BAS statements, 3-6 months of business bank statements, and identification. Self-employed applicants may need an accountant's letter. We'll tell you exactly what's needed for your situation.
Can I finance multiple vehicles for my business?
Absolutely. We arrange fleet finance for businesses buying multiple vehicles. This can include a mix of cars, utes, vans, and trucks. Fleet finance often comes with streamlined approvals and potentially better rates. We can structure the finance to suit your cash flow needs.
What's a balloon payment and should I use one?
A balloon payment (or residual) is a larger final payment at the end of your loan term. It lowers your monthly repayments during the loan. It's useful if you plan to sell or trade the vehicle at the end, or if you prefer lower monthly cash flow impact. We'll help you decide if a balloon suits your situation.
How quickly can I get approved for business car finance?
For straightforward applications with complete documentation, we can often get pre-approval within 24-48 hours. Some lenders offer same-day approval for strong applicants. Complex applications or those requiring additional documentation may take 3-5 business days. We'll give you a realistic timeline upfront.
Get Started
Get your business car finance quote
Tell us about your business and the vehicle you're looking for. We'll explain your options and find you competitive rates.
Business finance enquiry
Tell us about your business and vehicle needs.
