Key highlights
- Business purchases unlock options a personal buy can't
- Chattel mortgage: own the car from settlement
- Hire purchase and leasing offer alternative ownership paths
- One broker compares structures across 80+ lenders
Buying a car through your business opens up finance options that are not available on a personal purchase. Choosing between them comes down to how you want to handle ownership, repayments and your tax position. Here is an overview of the main routes.
What is a chattel mortgage for a car?
A chattel mortgage is a popular choice for buying a car through a business. The business owns the vehicle from settlement, and the lender holds security over it until the loan is repaid. This structure can suit businesses that want the asset on their books straight away. The treatment of GST and depreciation under a chattel mortgage should be confirmed with your accountant or registered tax adviser, as it depends on your circumstances and how the vehicle is used.
How do hire purchase and leasing work?
A commercial hire purchase lets the business use the car and take ownership once the final payment is made, while a lease provides use of the vehicle for a set term with different end-of-term choices. Each option handles ownership timing and repayments differently, and the right fit depends on whether you want to own the car outright, keep repayments predictable, or update the vehicle regularly.
How do you choose the right car structure?
The best structure is the one that matches how your business uses the car and manages cash flow. Consider the deposit you can contribute, the term you are comfortable with, and whether a balloon payment would help your monthly budget. Because these choices carry tax and accounting implications, it is sensible to plan them alongside your accountant or registered tax adviser before committing.
How do you compare business car options?
Overdrive Business Vehicle Finance can compare these structures across a panel of more than 80 lenders through one broker, Simon Kendrick, so you can see what may suit your business. Request an obligation-free quote to get started. The first check is a soft enquiry with no impact on your credit score and no obligation to proceed.
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