Types of Loan / Car Loans
Car Loans & Vehicle Finance
Competitive vehicle finance across new and used cars, commercial vehicles, and fleet.
Car Finance Options in Australia
Vehicle finance in Australia takes several forms, each with different ownership, tax, and cashflow implications. Understanding which product suits your circumstances — personal use, business use, or salary packaging — determines both the cost and the structure of your finance.
Consumer Car Loans
A standard car loan is a secured personal loan where the vehicle serves as security. You own the vehicle from day one and make fixed repayments over an agreed term — typically 1 to 7 years. Interest rates for consumer car loans vary considerably between providers.
Chattel Mortgage
For business use vehicles, a chattel mortgage is typically more tax-efficient than a consumer loan. The GST on the purchase price is claimable in full in the BAS period of purchase, and interest payments and depreciation are deductible to the extent of business use. The business owns the vehicle from settlement.
Novated Lease
A novated lease is a three-way arrangement between the employee, employer, and finance company. Lease repayments are made from pre-tax salary, reducing taxable income. Running costs can also be bundled into the lease on a pre-tax basis. This is particularly effective for higher income earners and is especially attractive for eligible electric vehicles under current ATO policy.
FAQ
Frequently Asked Questions
What is the difference between a chattel mortgage and a consumer car loan?
A chattel mortgage is a business finance product where the borrower owns the vehicle immediately and claims tax deductions for interest and depreciation. A consumer car loan is a personal finance product with no tax deductions available. The right choice depends on how the vehicle will be used.
Can I finance a used vehicle?
Yes. Most lenders finance used vehicles up to 10–12 years old at the time of application, subject to the vehicle’s condition and value. Interest rates for used vehicles are typically slightly higher than for new vehicles.
What is the current FBT treatment of electric vehicles?
As of the 2024–25 financial year, eligible zero and low emission vehicles are exempt from Fringe Benefits Tax under a novated lease, making this an exceptionally tax-effective way to finance an EV. This exemption applies up to the luxury car tax threshold. We recommend confirming current policy with your accountant.
How quickly can I get approved for a car loan?
For straightforward applications, same-day or next-day approval is achievable. We submit to specialist asset finance lenders who maintain fast assessment processes. Settlement can occur within 24–48 hours of formal approval for private sale vehicles.
Does financing a car affect my ability to get a home loan later?
Yes — car loan repayments are treated as committed liabilities in a home loan serviceability assessment. If you are planning to apply for a home loan in the near future, we recommend factoring this into your planning before taking on vehicle finance.
Some lenders may include bonus income, often based on history and consistency.