Key highlights
- New vehicles often attract longer loan terms
- A quality used car lowers upfront cost and early depreciation
- Choice affects finance terms, depreciation and running costs
- The right pick depends on budget and how long you'll keep it
- Simon compares lenders for new and used options
Choosing between a new and a used vehicle is one of the first decisions when financing for your business, and it affects more than just the sticker price. Finance terms, depreciation and running costs all come into play. Overdrive helps you weigh the options and match them to the right lender.
How does financing a new car work?
New vehicles often attract longer loan terms and can appeal to lenders because of their predictable value early on. The trade-off is a higher purchase price and steeper depreciation in the first years, which is worth factoring into your decision.
How does financing a used car work?
A quality used vehicle can lower your upfront cost and reduce early depreciation, potentially meaning you borrow less. Lenders may set limits on a vehicle's age at the end of the term, so older cars can affect the available term, subject to lender criteria.
New or used car: which suits your business?
The right choice depends on your budget, how long you will keep the vehicle and how it is used. Depreciation and GST treatment can differ, so check with your accountant or registered tax adviser about the impact on your business.
Whichever way you lean, Simon can compare lenders for new and used options and provide an obligation-free quote. It is a soft check that won't affect your credit score, so reach out to Overdrive to compare.
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