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There are a number of benefits that come with securing business car finance. 

Tax benefits

Regardless of whether you decide to go with a chattel mortgage, finance lease or novated lease, there are a number of tax benefits that might accompany your loan. Depending on the type of loan, this could be income tax savings, GST savings or the opportunity for tax deductions.

Learn more: ‘A Quick Guide On The Most Tax Effective Way To Buy A Car’

Less documentation required

Another major benefit of buying a car through business vehicle finance is that there is significantly less documentation required.

Ability to finance a broader range of vehicle types

Finally, getting a business car loan through Driva gives you the opportunity to finance a wide range of vehicle types. Whether you’re looking for a car, motorbike or caravan, if it’s got wheels, chances are we can help!

A business car loan might be right for you if:

• You will be using the vehicle for business purposes at least 50% of the time
• You’re looking to finance a vehicle (or any other wheeled equipment)
• Your financing needs are less than $250,000 per asset

Get your documents ready

To apply for a business vehicle loan, there are a few documents you’ll need to have handy. These include your ABN (Australian Business Number) and your recent business financial statements and tax return statements. 

Make sure the vehicle will suit your needs

Before you start shopping for your business vehicle, it’s important to make a checklist of the features you’re looking for. This list will be a part of your business plan, so it’s important to update and revise it as your business grows. 

Consider all the costs involved

Buying a car can be expensive - not only do you have to pay the purchase price of the car itself, but there are a number of other fees and charges that you’ll incur down the road, so it’s important that you budget for them. Keep in mind when determining how much to spend on a car these extra expenses will include tolls, petrol, servicing, repairs, registration and insurance.

Learn more: ‘Buying a Vehicle for Your Small Business - 3 Important Things To Consider’

Absolutely! You can purchase a car using a business car loan. This kind of car finance, known as a business vehicle loan, caters to businesses aiming to acquire a car primarily for business functions. Opting for a business car loan or even a low doc car loan can assist in keeping monthly repayments manageable and might also come with certain tax benefits based on current tax laws. However, this doesn't constitute tax advice, and one should seek professional advice to understand individual circumstances better.

Purchasing a car or an asset for business, through avenues like a business car loan, has its merits:

Cash Flow: Business car loans can help in managing cash flow. Instead of a lump sum paid upfront, businesses can make regular loan repayments, keeping their finances steady.

Tax Perks: Relying on a business car loan might yield tax benefits. A business can often claim deductions related to interest and the car's depreciation - such as with temporary full expensing. However, it's essential to get your own independent tax advice tailored to your taxation position.

Flexibility: Business car loan term agreements offer flexible repayment options. This might include choices like balloon payments towards the end of the loan term, influencing the regular repayments lower.

Vehicle Choice: With the right car loan, businesses might access a wider range of vehicles, be it a second hand vehicle or a brand-new car.

However, one should always evaluate the interest rate, loan amount, additional fees, personal financial situation and lending criteria. Also, while business car loans can offer benefits, it might result in more interest being paid over the loan's term, especially if one opts for longer loan terms or certain finance options like a balloon payment.