Start with use, ownership and the vehicle
Specify who will own and use the vehicle, the business structure, expected kilometres and any private use. A personal car purchase and a business-use vehicle can involve different products and obligations.
List essential fit-outs and accessories, such as shelving or a service body. Understand which parts of the purchase can be considered by the provider and which costs need separate cash.
Compare the lifecycle cost
A lower monthly repayment can come with a longer term or larger final payment. Add insurance, registration, energy or fuel, servicing and likely resale assumptions to the comparison.
If considering an electric vehicle, include charging access and the nature of the trips it needs to perform. Do not assume a particular tax outcome or concession will apply; get advice on the actual purchase.
What to review in a proposal
- Purchase price, trade-in and deposit treatment
- Loan or lease ownership terms
- Repayment frequency and total amount paid
- Balloon, residual or return conditions
- Insurance, maintenance and early exit obligations
What to prepare
- Dealer or seller quote
- Business and private-use information
- Fit-out and running-cost budget
- Trade-in or existing finance details
Common questions
Does holding an ABN guarantee a business vehicle loan?
No. An ABN is not an approval. The lender considers the vehicle, applicant and its own requirements.
Is a novated lease the same as a business vehicle loan?
No. A novated lease involves an employer-related arrangement. It needs a separate assessment and should not be treated as interchangeable.
General information only. Product terms and availability vary. Check the actual proposal and obtain advice appropriate to your circumstances.