Overdrive Funding arranges competitive business vehicle finance for Australian businesses. We compare 80+ banks and specialist lenders, negotiate the deal and manage everything from start to finish.
There are four realistic ways to fund a business vehicle in Australia, and they are not interchangeable. Choosing on monthly repayment alone is how businesses end up in the wrong one.
Chattel mortgage — what most businesses use
You own the vehicle from day one and the lender takes security over it. You can generally claim the GST on the purchase price in your next BAS, and claim depreciation plus the interest portion of repayments to the extent the vehicle is used for business. It is the default for a reason: you build equity, you control the asset, and the tax treatment is well understood.
Best for: most businesses buying a vehicle they intend to keep.
Finance lease
The lender owns the vehicle and leases it to you, with an option at the end of the term. Lease payments are generally deductible and GST is typically claimed on the payments rather than upfront. It can suit businesses that prefer the asset off their balance sheet or want to hand it back.
Best for: businesses that want to return the vehicle at term end, or have a specific balance sheet reason.
Operating lease and rental
Closer to long-term hire. You use the vehicle and return it; the financier carries the residual risk. Simple and predictable, and often bundled with maintenance — but you build no equity and it is generally the most expensive way to have a vehicle over the long run.
Best for: businesses that value predictability and simplicity over ownership, or cycle vehicles frequently.
Unsecured business loan — usually the wrong tool
You can buy a vehicle with an unsecured business loan, but you almost certainly should not. Unsecured lending prices higher precisely because there is no asset securing it — and here there is an asset, sitting right there, which could secure the loan and cut your rate substantially.
Using an expensive unsecured facility to buy an asset that could be financed at a lower secured rate is one of the more common and costly mistakes we see. Unsecured lending has its place — working capital, wages, opportunities asset finance cannot fund — but this is not it.
Rates and deposits
Established ABN (2+ years), new vehicle, full doc
Established ABN, used vehicle, low doc (no financials)
Newer ABN (under 12 months)
Prior credit issues or specialist lending
| Borrower profile | Indicative rate | Typical deposit |
|---|---|---|
| Established ABN (2+ years), new vehicle, full doc | From 6.1% | $0 – 10% |
| Established ABN, used vehicle, low doc (no financials) | 7% – 10% | 10% – 20% |
| Newer ABN (under 12 months) | 9% – 12% | 10% – 30% |
| Prior credit issues or specialist lending | 12% – 15% | 20% – 30% |
Rates are indicative only and subject to lender assessment, the vehicle, term and your individual circumstances. Low doc (no financials) business vehicle finance is available up to $300k for the right profiles.
Get a quote
Looking for the best rate on business vehicle finance? You're in the right place. Speak directly with Simon and our team for a free, no-obligation quote, or get a free quote online. Our service is completely free. We're paid by the lender only after a deal settles, so there's no cost to you—even if you choose not to proceed.