Trusts are a common structure for Australian businesses, and a frequent question is whether a trust can finance a vehicle. The answer is generally yes, though lenders take extra care to understand the trust arrangement. Here is how it works.
Can a trust finance a car?
A trust can hold business car finance, usually with the trustee entering the loan on behalf of the trust. Where a company acts as trustee, the finance is often written in that corporate trustee's name. Lenders are familiar with these setups across the panel Overdrive compares.
What do lenders need from a trust?
Expect lenders to review the trust deed, identify the trustee and beneficiaries, and assess serviceability. Personal guarantees from directors or individual trustees are common. Requirements vary between lenders, so matching your trust to the right one matters.
How should a trust hold a vehicle?
Because trusts carry particular tax and asset considerations, it is important to confirm how the vehicle should be held and what deductions may apply with your accountant or registered tax adviser.
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