If you’re in need of a business car loan, some of the available options include a chattel mortgage, hire purchase, leasing, or a Low Doc loan. With numerous options for business car finance, it depends on your needs, budget and business as to what may be the best option for you.
A chattel mortgage gives you ownership of the vehicle at the time of purchase rather than at the end of the car loan. This allows you to claim the vehicle as a taxable offset, claim the GST on the purchase price and the depreciation of the vehicle and interest charges on the loan.
A hire purchase involves hiring the vehicle with the intent to purchase it at the end of the loan.
During the term of the loan, the vehicle is owned by the lender, so you are not able to claim the vehicle as a taxable offset. A hire purchase allows you to decide whether to include a residual or not.
Working in a similar way to a hire purchase, leasing may be a better option for some businesses, as this type of vehicle financing has a regulated residual value calculated off the loan term.
Unlike many other types of loans, a Low Doc requires little to no proof of your financial position. It instead relies on factors such as the vehicle being purchased, the tenure of your business, your circumstances and your financial position.
Speaking to a Finance Specialist can help you source the right loan to best suit your budget.
With access to over 60 lenders, we can help you get the best rate in record time. After all, you don't walk into a bank and take the first product offered to you.
Contact our team for more information or leave an enquiry below.
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