Can You Finance a Luxury Car Through a Business?

Key highlights

• Luxury cars can be financed for genuine business use
• Luxury car tax thresholds affect the treatment
• Vehicle should be used predominantly for business
• One broker compares premium options across 80+ lenders

Can you finance a luxury car?

A luxury passenger car bought for genuine business use can generally be financed through structures such as a chattel mortgage, in the same way as a more modest vehicle. Lenders will assess the application on the usual factors, including the strength of the business, the applicant's credit history and the value of the car. The higher purchase price simply means a larger amount financed, which lenders weigh accordingly.

How do luxury car tax thresholds work?

Luxury vehicles are where the tax treatment becomes especially important. Australian tax rules apply limits and thresholds that can affect how much of a higher-value car may be claimed for depreciation, and other rules may apply. These are technical and change over time, so it is essential to confirm the current treatment for your circumstances with your accountant or registered tax adviser before you buy.

Does business use affect luxury car finance?

As with any business car, the vehicle should be used predominantly for business purposes to be financed on business terms, and any private use may need to be apportioned. A clear record of how the car is used supports both the finance application and your tax position. Keeping that documentation from the outset can save difficulty later.

How do you compare luxury car finance?

Overdrive Business Vehicle Finance can compare indicative options for a premium vehicle across a panel of more than 80 lenders through one broker, Simon Kendrick. Request an obligation-free quote to see what may be available. The first check is a soft enquiry with no impact on your credit score and no obligation to proceed.