Utes, vans and cars that earn their keep
Business vehicle finance from 18+ Australian lenders.
Utes, vans, cars and EVs funded against the vehicle itself. Your broker explains the balloon, the total cost and the tax treatment before you sign.
What is a business vehicle finance?
Business vehicle finance is secured lending used to buy cars, utes and vans for business use, most commonly structured as a chattel mortgage over three to seven years with an optional balloon. Because the vehicle is used to produce income, interest and depreciation are generally deductible and GST on the purchase price is usually claimable.
A business vehicle is financed on better terms than the same car bought personally, because it is income-producing security with a deep resale market. Rates for an established, GST-registered business buying a new ute typically sit in the sevens or eights, and low-doc approval within panel limits often takes a day. Private sales, dealer purchases and demonstrator vehicles are all supported.
The balloon is the decision that trips people up. Setting a 30% balloon on a $70,000 ute cuts the monthly repayment noticeably, but $21,000 falls due at the end of the term, and if the vehicle is then worth $18,000 you are short. Balloons work well when the vehicle holds value and you plan to trade it; they work poorly on vehicles that depreciate hard or accumulate heavy kilometres.
Two tax points matter. The car limit for depreciation caps the amount you can claim on passenger vehicles regardless of what you paid, though most one-tonne utes and commercial vans fall outside it. Fringe benefits tax can apply where a vehicle is available for private use, with different treatment for eligible electric vehicles. Your broker flags both; your accountant confirms the position for your structure.
Business vehicle finance at a glance
| Amount | $10,000 – $250,000 |
|---|---|
| Term | 12–84 months |
| Rate type | Fixed |
| Indicative rates (Q3 2026) | 6.8% – 15% p.a. · see rate history |
| Security | Secured by the asset |
| Repayments | Monthly, with weekly and fortnightly available |
| Typical speed | Same day to 48 hours for low-doc |
| Best for | Businesses buying utes, vans or cars used predominantly for work |
| Consider something else if | Vehicles used mainly privately, where a consumer car loan and its protections apply instead |
| Tax | Interest, depreciation and running costs are deductible to the extent of business use. GST credits and the car limit may apply. Confirm with your accountant. |
Advantages
- Lower rates than consumer or unsecured lending
- GST on the price usually claimable upfront
- Fast low-doc approvals for established businesses
Trade-offs
- Balloon payments create end-of-term exposure
- FBT may apply where private use is available
- The car limit caps depreciation on passenger vehicles
How to apply for a business vehicle finance
- 01
Pick the vehicle
Dealer or private sale, new, demo or used, with the drive-away price and any accessories confirmed.
- 02
Set the structure
Your broker matches term, deposit and balloon to how long you will keep the vehicle and the kilometres it will do.
- 03
Settle and collect
The financier pays the dealer or seller directly and you take delivery.
Documents lenders commonly ask for
- Driver licence and ABN
- Dealer invoice or private sale contract
- Bank statements or financials depending on the amount
What people finance with a business vehicle finance
Lenders we compare for this
Angle Finance, Metro Finance, Pepper Money, Macquarie, Westpac and others on our panel. See the full panel.
Estimate your repayments
- Number of repayments
- 48
- Total interest (est.)
- $13,904
- Total repaid (est.)
- $88,904
This calculator provides an estimate only and does not account for fees, charges or the specific terms a lender may offer. It is not financial advice or an offer of finance.
Key terms
What is business vehicle finance?
Business vehicle finance is a loan or lease used to acquire a car, ute or van for business purposes, secured by the vehicle. The most common Australian structure is a chattel mortgage, where the business owns the vehicle from purchase.
What is a balloon payment on a car loan?
A balloon is a lump sum, typically 20–40% of the purchase price, due at the end of the finance term. It reduces regular repayments but must be paid, refinanced or covered by selling the vehicle when the term ends.
Can you claim GST on a business vehicle?
A GST-registered business buying a vehicle under a chattel mortgage can generally claim the GST credit on the purchase price in its next BAS, subject to business-use percentage and the car limit. Confirm the position with your accountant.
What is the car limit?
The car limit is the maximum cost on which depreciation can be claimed for a passenger vehicle, indexed each year by the ATO. Vehicles designed to carry one tonne or more, or nine or more passengers, are generally excluded from the limit.
Business vehicle finance FAQs
Can I finance a vehicle bought privately rather than from a dealer?
Yes, most asset lenders fund private sales, with extra checks. The lender will run a PPSR search to confirm no existing finance is registered against the vehicle, verify the seller's identity and bank details, and may require an inspection or valuation. Funds are paid to the seller after signing, not to you. Private sales usually settle a little slower than dealer purchases and there is no GST credit to claim unless the seller is registered and issues a tax invoice.
Is finance for electric vehicles different?
The finance structures are the same — chattel mortgage, lease or novated lease — but a few things change. Some lenders offer specific EV or low-emissions products, residual and balloon settings can be more conservative because resale values are still stabilising, and charging infrastructure can sometimes be financed alongside the vehicle. For employees, eligible electric vehicles under the luxury car tax threshold may attract an FBT exemption on a novated lease. Confirm current rules with your accountant.
How does fleet finance differ from financing one vehicle?
Fleet arrangements put several vehicles under one approved limit, so each new vehicle is drawn down against an existing facility rather than assessed from scratch. That saves time and gives consistent pricing across the fleet. Larger fleets can add maintenance, registration and fuel management into a single monthly cost. The trade-off is an annual review of the overall limit and, in some cases, tighter reporting requirements from the financier.
How is a personal car loan different from business vehicle finance?
A personal car loan is consumer credit regulated by the National Consumer Credit Protection Act. That brings responsible lending obligations on the lender and the broker, a requirement to quote a comparison rate, and access to consumer dispute resolution. Business vehicle finance for a genuine business purpose generally sits outside that regime and is assessed on the business rather than household budget. The security over the vehicle can look similar; the disclosure, protections and tax treatment do not.
How are funds paid to the seller at settlement?
The lender pays the supplier directly, not you. For a dealer purchase, the financier settles against the dealer's tax invoice once signed documents and any conditions are complete, and the dealer releases the asset. For a private sale, the funds go to the verified seller after the PPSR check and identity verification, and you sign a receipt confirming delivery. If you have already paid a deposit, that is shown on the invoice and reduces the amount financed.
I have just started my ABN — what can I realistically finance?
Asset finance is usually the most accessible starting point, because the equipment provides security. Lenders with start-up or new-ABN policies will typically consider a first vehicle, ute or machine where you have verifiable industry experience, a clean personal credit file, and often property ownership or a deposit of around 10% to 20%. Unsecured working capital is much harder in the first six to twelve months. As BAS and bank history build, the panel available to you widens.
I have moved from being an employee to contracting — does that count as experience?
It counts for a great deal, particularly in asset finance. A lender assessing a first truck, ute or machine wants to know the person operating it knows the work and has a source of income. Years of employment in the same trade, a current licence of the right class and a subcontract with your former employer or another operator address exactly that. It does not remove the short ABN history, but it often turns a decline into an approval with a deposit.