Self-Employed Car Loans

Banks have strict serviceability calculators that don't accommodate variable income or tax minimisation strategies. Many self-employed Australians legitimately reduce taxable income through deductions, depreciation, and income splitting — but banks assess you on NET taxable income from your tax return, not actual cash flow. A business owner earning $200k might only show $80k taxable income after deductions. Banks see $80k. Specialist lenders assess bank statements (actual cash flow) and understand business income structures, resulting in higher approval rates and better loan amounts for self-employed applicants.

Low-doc (low documentation) car loans allow self-employed borrowers to prove income using bank statements, BAS statements, or accountant declarations instead of full tax returns. You typically provide 6-12 months of business bank statements showing consistent cash flow. The lender assesses your actual deposits and expenses to calculate serviceability. Interest rates are slightly higher (0.5-1.5% more) than full-doc loans due to increased lender risk, but approval rates are much higher for self-employed borrowers. Low-doc is ideal if your tax returns don't reflect your true earning capacity due to aggressive tax minimisation.

This depends on business use percentage and asset protection needs. Personal name loans are simpler (consumer credit protections) but offer no tax benefits unless you're a sole trader. Company name purchases using Chattel Mortgage allow the company to claim GST upfront (if registered), plus 100% of interest and depreciation as tax deductions based on business use. However, you lose consumer credit protections and need director guarantees. Many business owners use company name for 100% business vehicles (utes, vans, work cars) and personal name for dual-use vehicles (family SUV used 40% for business). We help you structure correctly based on your situation.

Most lenders require 12+ months ABN history, but some specialist lenders approve 6-9 month old ABNs if you have strong financials and industry experience. If you're a startup business owner, expect to provide larger deposits (20-30%), demonstrate consistent income in your bank statements, and potentially pay slightly higher rates (0.5-1% more). If you have significant assets (property equity, savings) or previous business ownership, some lenders waive the 12-month requirement entirely. Contractors and consultants moving from PAYG employment to ABN often qualify immediately if they're working with the same clients/industry.

Yes, many low-doc lenders accept BAS (Business Activity Statements) combined with bank statements as proof of income. BAS statements show your quarterly GST turnover and are lodged with the ATO, providing independent verification of business activity. You typically need 4-6 consecutive BAS statements (12-18 months) plus matching business bank statements. This works well for businesses with strong turnover but lower taxable profit due to legitimate deductions. BAS + bank statement applications usually attract rates from 6.5-8% p.a. depending on deposit size and credit history.

If you operate through a trust (common for family businesses and asset protection), the vehicle can be purchased in the trust name with the trustee(s) and/or beneficiaries providing personal guarantees. The trust claims interest and depreciation deductions, and income/deductions flow through to beneficiaries according to the trust deed. This provides asset protection (vehicle owned by trust, not you personally) and flexible tax planning. However, trust lending is more complex — you'll need trust deed, trustee minutes, beneficiary details, and typically 2 years of trust tax returns. Rates are comparable to company loans (from 6.5% p.a.) for established trusts with strong financials.

A chattel mortgage is a business loan secured against a vehicle (chattel = moveable property). It's the most popular finance structure for self-employed car purchases because: (1) GST registered businesses claim GST upfront on the purchase price, (2) interest and depreciation are 100% tax deductible based on business use, (3) you own the vehicle from day one (unlike leases), (4) balloon payments available to reduce monthly costs. The vehicle must be used for business purposes. Typical chattel mortgage rates for self-employed borrowers range from 5.5-8% p.a. depending on documentation type, ABN age, and deposit. Best for business owners with 50%+ business vehicle use.

Absolutely. Self-employed borrowers refinance to access better rates, release equity for business cashflow, or restructure to claim tax deductions (switching from consumer loan to chattel mortgage). The refinance process mirrors new car finance — you provide income evidence (tax returns or bank statements), vehicle valuation, and loan payout figure. If your business has grown or stabilised since the original loan, you may qualify for better rates. We work with {COMPANY.lenderCount} lenders who specialise in self-employed refinancing, including low-doc options if your tax returns don't reflect current income. Typical refinance rates start from 6.5% p.a. for established ABN holders.