Key highlights
- Predictable path from choosing the car to settlement
- Repay over an agreed term, often two to five years
- Balloon payments can lower regular repayments
- One broker compares options across 80+ lenders
If you have never financed a vehicle through your business before, the process can feel opaque. In practice it follows a fairly predictable path. Here is how business car finance generally works from start to finish.
How do you choose the car and structure?
The process usually starts once you have a car in mind, whether it is a new SUV from a dealer or a used sedan. You then decide how to fund it, with a chattel mortgage being the common choice for business use. Under this structure the business takes ownership of the vehicle immediately, and the lender registers security against it. That security is released once the loan is fully repaid.
How is a car finance application assessed?
You provide details about the business and the vehicle, and the lender assesses the application against its own policy. Depending on the lender, this may involve full financial documentation or a low-doc pathway for eligible applicants. Factors such as trading history, cash flow and credit conduct all feed into the decision. Approval and the final rate are always subject to lender criteria, so nothing is guaranteed until an offer is issued.
How do repayments and balloons work?
Once approved, you repay the finance over an agreed term, often between two and five years, usually in fixed monthly instalments. Many business car loans allow a balloon or residual amount, a lump sum deferred to the end of the term that lowers the monthly repayment but leaves a larger final payment to settle or refinance. How repayments and any GST or depreciation are treated should be confirmed with your accountant or registered tax adviser.
How do you get an indicative car quote?
Overdrive Business Vehicle Finance can walk you through each step and compare options across a panel of more than 80 lenders through one broker, Simon Kendrick. Reach out for an obligation-free quote to see what may fit your business. The first check is a soft enquiry with no impact on your credit score and no obligation to continue.
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