Key highlights
- An ATO debt does not necessarily shut out car finance
- A formal payment arrangement you're meeting helps your case
- A deposit and recent bank statements strengthen the application
- Some lenders look past tax debt when the rest is sound
- Soft check to quote — no impact on your credit score
Owing money to the ATO is common for businesses managing cash flow, and it does not necessarily shut the door on car finance. Some lenders are willing to look past a tax debt when the rest of your application is sound. Overdrive helps you find lenders comfortable with your circumstances.
How do lenders view ATO debt?
Lenders differ in how they treat ATO debt. Some may proceed if you have a formal payment arrangement in place and are meeting it, while others focus on your overall income, ABN age and credit profile, subject to lender criteria.
What helps a car loan with ATO debt?
Demonstrating that your tax debt is under control, offering a deposit and providing recent bank statements can strengthen your application. A payment plan with the ATO that you are honouring often reassures lenders that the debt is being managed.
How does ATO debt affect your finances?
Because tax debt interacts with your broader financial position, it is sensible to check with your accountant or registered tax adviser about your options and any arrangements before you apply for finance.
Overdrive can identify lenders who may consider your application despite ATO debt. Ask Simon for an obligation-free quote, a soft check that won't affect your credit score, and see what is possible.
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