Business Vehicle Finance for Cars, Utes and Light Commercial
Finance the cars, utes and light commercial vehicles your business runs on. Choose between chattel mortgage, finance lease and hire purchase, with major banks and specialist asset lenders.
Subject to lender assessment and approval. ACL 384704.
Business Vehicle — Quick Guide
- Structures — chattel mortgage, finance lease, hire purchase
- Term — typically 1–5 years
- Deposit — 0–20% depending on lender and credit
- New & used — used age limits apply (typically up to 8–10 yrs)
- GST claim — usually upfront on chattel mortgage
- Tax — depreciation + interest deductible — confirm with accountant
Business Vehicle Finance Structures
Choose the structure that matches how you use the vehicle and how you account for it.
Chattel Mortgage
You own the vehicle, lender takes security over it.
- GST claim usually upfront on the purchase price
- Depreciation and interest deductible
- Most common structure for tradies and SMEs
Finance Lease
Lender owns the vehicle, business leases for a fixed term.
- Off-balance-sheet treatment depending on accounting standards
- Residual at end of term
- Suits businesses upgrading vehicles regularly
Hire Purchase
Pay over time, ownership transfers at the end.
- Useful structure for some entity types
- Less common than chattel mortgage now
- Confirm tax treatment with accountant
Operating Lease
Pure rental — return at end of term.
- Often used by larger businesses for fleet
- No residual risk to business
- Total cost usually higher than chattel mortgage
What Lenders Look For
- ABN actively trading (12+ months ideal, less can work with specialists)
- GST registration for vehicles intended for full GST claim
- Asset & liability position for guarantors
- Bank statements or BAS for low-doc paths
- Vehicle invoice / order from supplier
- Driver licence and ID for guarantors
Frequently Asked Questions
What’s the difference between a business car loan and a chattel mortgage?
"Business car loan" usually refers to a chattel mortgage — the most common structure for vehicles bought through a business. The business owns the vehicle, the lender takes a registered security interest, and you typically claim GST on the purchase upfront.
Can I finance a used vehicle?
Yes. Most lenders finance used business vehicles up to about 8–10 years old at end of term. Pricing and term may be tighter than for new vehicles. Specialist lenders are more flexible on age and condition.
How fast can business vehicle finance settle?
Straightforward business vehicle finance often settles in 24–72 hours from a clean application. Auto-decision platforms with specialist lenders are particularly quick for ABN holders with strong credit.
Do I need a deposit?
Often no, especially for established ABNs with clean credit on mainstream vehicles. Some lenders ask 10–20% deposit on tougher profiles, used vehicles or larger assets.
Related Asset Finance Pages
Need to finance a business vehicle?
Speak with Jorden about which structure fits your business — chattel mortgage, finance lease, hire purchase or operating lease.