Car finance works the same way whether you're buying for personal use or for your business: a lender pays for the vehicle, you own it from settlement, and you repay the lender in fixed instalments over an agreed term. What differs is the structure behind the scenes. Financing a car under an ABN for business use is usually done through a chattel mortgage — the same structure used for trucks and equipment — and if the business is GST-registered there's a GST credit to factor into the real cost. Financing a car for personal, domestic or household use is a consumer car loan, which sits under different consumer-credit rules and disclosure requirements.
Either way, repayments are usually weekly, fortnightly or monthly, and a balloon (residual) payment at the end of the term is optional — it lowers the regular repayment in exchange for a lump sum due at the end, and suits anyone planning to trade in or refinance before the term is up. New and used cars are both financeable, and so are private-sale purchases.
If you're financing a car under an ABN and your business is GST-registered, the GST credit on a work vehicle is capped by the ATO's car limit for depreciation purposes — even if the car costs more than that limit, the GST credit and depreciation claim are calculated against the capped amount, not the full purchase price. None of this applies if you're buying a car for personal use — there's no GST credit or business depreciation to claim on a straightforward consumer purchase. Confirm your specific position with your accountant before relying on any figure.
Cars, utes and vans are among the most common assets Australian small businesses finance — from a tradie's dual-cab to a sales rep's sedan or a delivery van. Because the vehicle is used to earn income, finance under an ABN is assessed differently to a personal car loan: lenders look at the business, not just your pay slips.
A broker can compare business vehicle finance across a panel of lenders, rather than taking the single offer from a dealer's finance desk.
There's no fixed limit. For a car, ute or van bought under an ABN, lenders typically look at:
Worked example (example only, not a quote): Using the calculator's starting figures — a $45,000 car, no deposit, a five-year term and a 30% balloon — the loan amount is $45,000. Your regular repayments pay off $31,500 of it plus interest, and the $13,500 balloon is due at the end. Use the calculator above for your figures.
Buying a car for personal use? Different consumer-credit rules apply, so tell your broker upfront.
Five steps, from first enquiry to picking up the keys.
Budget Finance is a credit representative (Credit Representative 565565) of Connective Credit Services Pty Ltd, Australian Credit Licence 389328. All applications are subject to the lender's assessment and approval.
Yes — the balloon/residual slider above sets the lump sum left at the end of the term, and your repayments update as you move it. A bigger balloon lowers the regular repayment but leaves more owing on the last day; drag it down to zero for no balloon at all. For more on how balloons work and your options when the term ends, read the balloon payments guide.
Usually an active ABN, photo ID, recent business bank statements or financials, and the car details. Lenders also check your credit history and how long your ABN has been active. Established businesses buying a standard vehicle often need less paperwork. Newer ABNs, bigger amounts or high-value cars may need more, such as tax returns or BAS. Your broker gives you the exact list before you apply.
Yes — if the car will be used mainly for business, it can be financed in the business's name or under your ABN, usually with a chattel mortgage. The business owns the car from settlement, and if it's GST-registered it can generally claim the GST credit, up to the ATO car limit. Interest and depreciation may also be deductible for the business-use share. Check the tax side with your accountant before you buy.
Send an enquiry with the car, price and how it will be used, then have a short call with a broker. You'll send ID, your ABN details and bank statements or financials, plus the dealer invoice or seller's details. Your broker picks a suitable lender from the panel and manages the application to settlement. Haven't found the car yet? Ask about pre-approval so you know your budget before you shop.
Not directly — a car loan can't usually be moved from your name to your business, but the business can refinance it. The business takes out a new loan to pay out your personal one and owns the car from then on. Whether that makes sense depends on how much the car is used for work, any early payout costs on the current loan, and tax. Talk to your accountant first, then your broker can set up the refinance.
Often, yes — recent business bank statements are one of the main ways lenders check that repayments fit your cash flow. Some lenders accept a lighter set of documents for established businesses buying a standard vehicle, while others ask for full financials or tax returns. Your broker tells you which applies before you apply. Clean statements, with no dishonours and few overdrawn days, help your application.
Both. The repayment maths is the same either way — what differs is the finance structure and paperwork behind it. If you're financing a car under an ABN for business use, it's usually a chattel mortgage with a possible GST credit; if you're buying a car for personal, domestic or household use, it's a consumer car loan with its own disclosure rules. Tell your broker which applies so we can set you up with the right product.
If your business is GST-registered and the car is used for business purposes, you can generally claim a GST credit on the purchase — though the ATO caps the GST credit at the car limit for higher-value vehicles, regardless of the car's actual price. Confirm the applicable limit and your entitlement with your accountant. This doesn't apply to a personal car purchase.
It depends on the lender — but we have lenders on our panel who don't require a deposit at all.
A balloon (residual) lowers your regular repayment by leaving a lump sum owing at the end of the term, which can suit anyone planning to trade in or refinance before the term ends. It's more commonly used on business car finance than on a straightforward personal car loan, but either can include one — the calculator above lets you compare the trade-off directly.
Yes — new and used cars are both financeable through our panel; the finance structure and calculator maths are the same either way.
No dealer requirement at all — a dealer sale, private sale, buying from a friend or relative, even a Facebook Marketplace listing, are all fine. Private sales just involve a couple of extra verification steps that we handle for you before settlement.