Luxury Car Finance

Luxury car finance rates typically range from 6.99% to 10.99% p.a. depending on the loan amount, vehicle age, deposit size, and your credit profile. High-value loans ($200k+) from private banks often qualify for premium rates around 6.99-7.99% p.a. New prestige vehicles generally attract better rates than used luxury cars. Specialist lenders understand that luxury car buyers typically have strong financial profiles and price their loans accordingly - often better than mainstream banks.

Deposit requirements for luxury vehicles are typically 20-30% of the purchase price, though some lenders approve 10% deposits for strong applicants. For ultra-high-value vehicles ($500k+), private banks may require 30-40% deposits. If you're trading in an existing luxury vehicle, the trade-in equity counts toward your deposit. Some specialist lenders offer 100% finance for prestige cars if you have exceptional credit and income, though rates are higher.

Yes, but vehicle age affects approval. Most lenders finance prestige vehicles up to 10-12 years old at time of purchase (15 years old at end of loan term). Exotic and collectible vehicles (Ferrari, Porsche GT models, classic Mercedes) may be approved older if they hold value. Interest rates on used luxury cars are typically 1-2% higher than new. Pre-2015 luxury vehicles may require specialist lenders who understand the prestige car market.

Balloon (residual) payments are popular for luxury vehicles because they significantly reduce monthly repayments while preserving capital for investments. For example, a $200,000 loan over 5 years with a 30% balloon ($60,000) might save $800-1,000 per month compared to a standard loan. This makes sense if you upgrade vehicles regularly or want to maintain cash flow. However, you must refinance or pay the balloon at loan end. For vehicles you plan to keep long-term, a standard loan with no balloon typically costs less overall.

Standard luxury car lenders typically cap loans at $250,000-$500,000. Private banks and specialist prestige lenders approve loans from $500,000 to $2 million+ for ultra-high-net-worth clients. Your maximum loan amount depends on your income, assets, existing debts, and overall financial position. As a rough guide, lenders prefer your car loan repayments (plus all other debts) to be under 30-40% of your gross income. For $1M+ vehicles, expect detailed wealth verification and relationship banking requirements.

Absolutely. We work with exotic car finance specialists who approve Ferraris, Lamborghinis, McLarens, and other supercars. These lenders understand the unique market for exotic vehicles and have higher risk appetite than mainstream banks. Expect to provide 30-40% deposit, demonstrate substantial income/assets, and pay rates around 8-11% p.a. Collectible models (Ferrari 488 Pista, Lamborghini Aventador SVJ) may require specialized valuations. Loan amounts typically range from $300,000 to $1.5M for supercars.

Only if the vehicle is used for business purposes. Personal luxury car loans are not tax deductible. However, if you're self-employed or a business owner and use the vehicle for work, you can claim interest and depreciation through a Chattel Mortgage structure. PAYG employees can salary package luxury vehicles through Novated Leases, saving 30-45% through pre-tax deductions. The $69,674 luxury car tax limit applies to depreciation claims, but you can still finance (and deduct interest on) vehicles well above this amount based on business use percentage.

Yes, and you may have better options than PAYG employees. Self-employed applicants typically provide 2 years of tax returns and business financials. Many luxury car buyers are business owners with complex income structures - our lenders understand this. If you want tax deductions, structure the loan as a Chattel Mortgage (business loan) and claim interest and depreciation. Low-doc options are available for self-employed borrowers with strong asset positions but limited documentation. Specialist prestige lenders focus more on assets and equity than employment type.