Yes, a trust can get vehicle finance. The finance is written to the trustee acting on behalf of the trust, whether the trustee is an individual or a company, and lenders generally require personal guarantees from the trustees or the company's directors. Approval depends on the trust's trading history, the asset and the guarantors' credit. Overdrive compares more than 80 lenders on one application to find one comfortable with trust structures.
How trust finance is structured
A trust cannot borrow in its own name because it is a legal relationship rather than a legal person. Instead, the trustee enters the finance contract on behalf of the trust, and the vehicle is held as a trust asset. The trustee can be an individual or a company, which shapes how the deal is documented. Lenders assess the trust's trading history and cash flow together with the credit of the trustees or directors, and they almost always ask those people to sign personal guarantees. This is normal and does not usually slow the process, provided everyone's details and the trust deed are ready when you apply.
What lenders ask a trust to provide
Most lenders request a copy of the trust deed so they can confirm the trustee has power to borrow and grant security. You will also supply the trust ABN, identification for each trustee or director, and evidence of trading. Low-doc options may need only an ABN, GST registration and a clean credit file, while full-doc deals can call for financials and tax returns. If the trust owns property or has strong cash flow, that helps. Getting the deed and identification together early keeps the application moving smoothly.
Chattel mortgage or lease
Trusts commonly use a chattel mortgage, where the trust owns the vehicle and it sits on the trust's books, or a lease where repayments are treated as an expense. The right choice depends on how the trust distributes income and the tax position, so speak with your accountant before deciding. Terms typically range from one to seven years, and a balloon or residual can reduce repayments. Rates start from around 7.20% p.a. for strong, asset-backed deals; lower-doc, older or cheaper assets and weaker credit are priced higher, and every figure is indicative and subject to lender assessment. For eligible applicants with orderly paperwork, quick pre-approval and settlement may be available.
Whether you run a discretionary, family or unit trust, Overdrive can compare lenders that finance trust-held vehicles and explain the guarantees involved. Reach out to Simon for a free quote and a clear read on your indicative options.
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