Buying a ute, van or car for work? You're in good company. New car sales in Australia just had their biggest October on record, with the Toyota HiLux and Ford Ranger the two top sellers (Drive). If the vehicle is for your business, a business car loan usually gives you more options than a personal loan, and it keeps your cash free for wages, fuel and materials. Here's how a business car loan works, who can get one, and what to line up before you apply.
What is a business car loan?
A business car loan is finance for a vehicle that's used mainly for business. It's written to an ABN holder and the vehicle secures the loan, which is why pricing is usually sharper than unsecured borrowing.
Most business car loans are set up as a chattel mortgage. Your business owns the vehicle from day one, and the lender holds security over it until the loan is repaid. Our chattel mortgage vs finance lease guide compares the structures in detail.
You'll also see it called business car finance, a commercial car loan or an ABN car loan. They all mean much the same thing.
Business car loan vs personal car loan
| Business car loan | Personal car loan | |
|---|---|---|
| Who it's for | ABN holders using the vehicle mainly for business | Anyone buying mainly for personal use |
| Income evidence | Financials, or BAS and bank statements on a low doc loan | Payslips or tax returns, verified under responsible lending rules |
| GST | GST registered businesses can generally claim a credit, up to the car limit | No GST credit |
| Tax | Interest and depreciation are generally deductible for the business use portion | Generally no deductions |
| Balloon | Commonly available | Offered by some lenders |
If the vehicle is mainly for personal use, a personal car loan is the right product, even if you're self employed. Be upfront about how you'll use it, because that decides which loan and which rules apply.
Who can get a business car loan?
Any business structure with an ABN can apply:
- sole traders
- partnerships
- companies
- trusts.
The loan can be in your business name. For companies and trusts, lenders usually ask the directors for a personal guarantee.
Your options, by situation
The question we hear most is "Will I get approved?" The answer depends on where your business is at.
| Your situation | What lenders usually look for | Your likely path |
|---|---|---|
| Established, financials up to date | Tax returns, financials, clean credit | A full doc loan with the widest choice of lenders |
| Trading well, tax returns behind | BAS, business bank statements, an accountant's letter, or a credit reference from a previous loan | A low doc car loan |
| New ABN | Industry experience, clean credit, a deposit or property | Lenders that consider newer businesses |
| Buying privately or at auction | The vehicle's age, condition and a clear title | Lenders that accept private sales, with PPSR and seller checks |
| Trading in a vehicle with finance owing | The payout figure and the trade in value | The old loan is paid out at settlement, with any shortfall dealt with up front |
| Past credit issues | The reason, how long ago and your current position | Fewer lenders and usually higher pricing, so get advice first |
Lenders vary a lot. One lender's "no" can be another lender's "yes", which is where comparing 70+ lenders makes a real difference.
Had finance before? A credit reference can help
For low doc car loans, some lenders will go off a credit reference from a previous loan instead of asking for financials. If you've had a car or equipment loan before and paid it on time, that repayment history can do a lot of the talking. Tell us about any past or current finance up front, because it can open up more lenders.
What vehicles can you finance?
- utes, including dual cabs and cab chassis
- vans and people movers
- cars and SUVs used for business
- electric and hybrid vehicles
- new, demo and used vehicles
- dealer, auction and private sale purchases, subject to lender policy.
Trays, canopies, toolboxes and other accessories on the invoice can often be included in the same loan. Buying something bigger? See our truck finance guide.
Keeping repayments in line with your cash flow
- Term. A longer term lowers each repayment but costs more interest overall.
- Deposit or trade in. Not always needed. Many established businesses can borrow with no deposit.
- Balloon. A lump sum at the end lowers regular repayments, but you'll need a plan to pay it. Our balloon payment guide walks through the risks.
- Fixed rate. Most business car loans are fixed. With the RBA lifting the cash rate to 4.85% on 3 November, a fixed rate locks your repayments in for the term once you settle.
Your rate depends on your business profile, credit, the vehicle and the lender. Compare the total cost, including fees, not just the headline rate.
GST and tax: the quick version
- GST. If you're registered for GST, you can generally claim a GST credit for the business use portion, usually in your next BAS.
- The car limit. For 2026/27 the ATO's car limit is $69,883. The most GST credit you can claim on a car is $6,353, and depreciation is worked out on no more than the limit.
- Utes and vans. Vehicles designed to carry one tonne or more, or nine or more passengers, generally fall outside the car limit.
- Interest and depreciation. Both are generally deductible for the business use portion, so keep records of how the vehicle is used.
- Instant asset write off. It only applies to assets under $20,000. Our instant asset write off guide explains the rules.
How this lands for your business is a question for your accountant.
Can you use a business loan to buy a car?
You can, but an unsecured business loan usually costs more than a loan secured by the vehicle. Keep cash flow finance for cash flow, and use vehicle finance for vehicles.
Can you move a personal car loan into your business?
Sometimes. If a car you bought personally is now used mainly for business, you may be able to refinance it into a business car loan. The lender will assess your business, and there can be tax consequences, so talk to your accountant first. Our refinance guide explains how switching works.
What to have ready
- your ABN and GST registration details
- your driver's licence
- the dealer's quote or invoice, or the listing for a private sale
- 3 to 6 months of business bank statements
- recent financials, or BAS statements if you're going low doc
- details of any previous or current car or equipment loans, which some lenders use as a credit reference
- a payout letter if you're trading in a vehicle with finance owing.
From the broker's desk
“The mistake I see most is business owners taking whatever finance the dealership offers on the day, because the ute is sitting there ready to go. Get your approval sorted before you walk into the yard. You'll know your budget, you can negotiate on the price of the vehicle alone, and you won't be signing a finance contract in a hurry.” Dayle Filliponi, Lend It Finance Group
How Lend It helps
We compare 70+ lenders for business car loans, from a single work ute to a small fleet. We'll tell you up front which documents each lender needs, so you only apply once. Approvals can come through in as little as 24 hours. If your financials aren't up to date, low doc options are available up to $500k, subject to lender criteria.
Getting a quote doesn't affect your credit score. We may run a soft check, and a full credit enquiry only happens when you apply. We're based on the Gold Coast, help businesses Australia wide, have 250+ Google reviews and we're open 7 days, 8:30am to 6pm.
FAQs
How do I get a business car loan?
You need an ABN, a vehicle used mainly for business, and evidence the business can afford the repayments. A broker can match you to a lender and tell you which documents to provide.
Can a new business get a car loan?
Often, yes. Lenders usually look for industry experience, clean credit, and a deposit or property.
Can I get a car loan in my business name?
Yes. Sole traders, partnerships, companies and trusts can all borrow. Directors are usually asked for a personal guarantee.
Can I get a business car loan without financials?
Often, yes. Low doc lenders may accept BAS or bank statements, and some will go off a credit reference from a previous loan that was paid on time.
Is business car loan interest tax deductible?
Generally yes, for the business use portion. Your accountant can confirm how it applies to you.
Do I need a deposit for a business car loan?
Not always. Established businesses can often borrow with no deposit. Newer ABNs may need one.
Can I buy a used ute from a private seller?
Many lenders allow it, subject to checks on the vehicle's age, condition and title.
Ready to get the keys?
Tell us what you're buying and how your business is set up, and we'll lay out your options. Get a business car loan quote or call 1300 082 012.
Researched with AI assistance, written and checked by Dayle Filliponi.
General information only. This article is not financial, tax or legal advice and doesn't take your circumstances into account. Talk to your accountant or a licensed adviser before you make a decision. Information current as at 12 November 2026. Lend It Finance Group is a credit representative (535206) of COG Compliance Services Pty Ltd, Australian Credit Licence 384428.