Key highlights
- Replace an existing vehicle loan with new terms
- May adjust repayments as circumstances change
- Compare the total cost, not just the headline rate
- Confirm any tax or GST considerations with your adviser
- One broker compares 80+ lenders for ABN businesses
Business circumstances change, and a vehicle loan that suited you a couple of years ago may no longer be the best fit. Refinancing can be a way to adjust your arrangement. This guide looks at when it may be worth considering.
What does vehicle refinancing involve?
Refinancing generally means replacing an existing vehicle loan with a new one, potentially with different terms. Businesses look at it for various reasons, such as freeing up cash flow, adjusting the term or consolidating arrangements. Whether it makes sense depends on your current loan and the options available.
Why do businesses refinance a vehicle?
Eligible applicants may refinance to change repayments, respond to a shift in the business, or because their circumstances have improved since the original loan. It is worth checking any exit costs on the current facility before proceeding. Outcomes are subject to lender criteria.
How do you compare refinancing costs?
The value of refinancing comes down to the full picture, not just the headline figure, so compare the total cost carefully. Any tax or GST considerations should be confirmed with your accountant or registered tax adviser.
How do you check if refinancing stacks up?
With Overdrive you deal with one broker, Managing Director Simon Kendrick, who compares 80+ banks and non-bank lenders for ABN businesses. Ask for an indicative quote and a soft check to see whether refinancing may help.
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