Business Car Finance for Sole Traders

Key highlights

• Sole traders with an active ABN can apply
• Structures like a chattel mortgage available in your name
• Lenders weigh ABN age, income consistency and credit
• One broker helps sole traders compare 80+ lenders

Can a sole trader get business car finance?

A sole trader with an active ABN can generally apply for business car finance in their own name, using structures such as a chattel mortgage. Because there is no separate company, the finance is tied to you personally, which means your individual credit history and the trading performance of your business both matter. The vehicle still needs to be intended predominantly for business use to be financed on business terms.

What do lenders assess for sole traders?

Lenders typically look at how long you have held your ABN, the consistency of your income, any deposit you can contribute and your credit conduct. Some applicants provide full financials, while others may be considered under low-doc arrangements, subject to lender criteria. Because sole trader circumstances vary widely, having your ABN details, identification and any recent financial records ready can help move an application along.

How do sole traders get the structure right?

For a sole trader, how the car is used and recorded can affect the tax position, particularly where the vehicle has both business and private use. Apportioning that use correctly is important, so it is worth confirming the treatment of GST, depreciation and any claims with your accountant or registered tax adviser before you buy.

How do sole traders get a car quote?

Overdrive Business Vehicle Finance works with sole traders regularly, comparing options across a panel of more than 80 lenders through one broker, Simon Kendrick. Request an obligation-free quote to see what may be available to you. The first check is a soft enquiry with no impact on your credit score and no obligation to proceed.