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.
Financing a vehicle through your business is the most common asset finance transaction in Australia, and also the one where people most often leave money on the table by signing whatever the dealer put in front of them. This guide covers how it actually works.
How business vehicle finance works
Most Australian businesses use a chattel mortgage. You own the vehicle from day one, the lender takes security over it, and you repay over a set term with an optional balloon at the end. Because you own it, you can generally claim the GST on the purchase price in your next BAS, and claim depreciation plus the interest portion of your repayments to the extent the vehicle is used for business.
The alternative structures are a lease, where the lender owns the vehicle and you lease it back, and a novated lease, which involves your employer and only applies to employees rather than business owners. For a business buying its own vehicle, a chattel mortgage is almost always the structure.
What you can finance
Cars, utes, vans, light trucks and cab chassis, new or used, from dealers, private sellers or auctions anywhere in Australia. Fit-outs — canopies, trays, racking, shelving, toolboxes and service bodies — can generally be financed with the vehicle where they are fitted at purchase and appear on the same invoice. We only finance vehicles located in Australia.
Rates and what moves them
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.
Low doc and deposits
Low doc (no financials) business vehicle finance is available up to $300k for the right profiles, assessed on your ABN, GST registration, credit profile and the vehicle rather than tax returns. Note this is a lower cap than trucks and machinery, which run to $500k on low doc.
Deposits typically range from 10% to 30% depending on your ABN length, credit profile and whether the vehicle is new or used. $0 deposit is available on stronger applications, though putting a deposit in can reduce your rate — so it is worth pricing both ways rather than assuming $0 down is the cheapest outcome.
The tax rules that catch people out
Cars are subject to a car limit that caps the depreciation you can claim regardless of what you paid, and the GST credit is capped in a related way. Buying a $90,000 car does not mean you depreciate $90,000. This surprises people constantly, particularly on prestige vehicles.
Utes and vans above a certain load capacity may fall outside the car limit and be treated differently, which is one reason the tax outcome on a work ute can be better than on a car of similar price. The rules are specific and they change — confirm your position with your accountant before you assume the benefit.
Getting the best deal
Get pre-approved before you visit the dealership. It tells you your ceiling, and it means you negotiate on the vehicle's price rather than on a monthly repayment — which is the number dealers prefer to negotiate on precisely because it hides the rate, the term and the balloon.
Then compare the market. Dealer finance only offers what that dealership's financier will do. On a $60,000 vehicle over five years, a two-point rate difference is thousands of dollars.
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.