ABN Car Loans
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Low doc ABN car loans
ABN or low doc business car loans provide a convenient, alternative way to apply for vehicle finance when you’re short on up-to-date financial paperwork. Many businesses and sole traders depend on finance for a variety of reasons. Even the most successful organisations and individuals turn to finance when they need to expand, buy new equipment, or take on staff. However, it can be more challenging to apply for a vehicle loan when your accounts or tax returns aren’t ready, or don’t meet lender requirements, so you might need a low doc solution.
Savvy has worked with businesses like yours to help them secure competitive car finance option over a decade. Get started with your car loan application and see how much Savvy can help you save on your next car purchase.
Features and benefits of our ABN car loans
Competitive interest rates
We offer competitive interest rates on your car loan and represent over 25 reputed lenders nationally.
Claim all GST back on your next BAS
Business owners can claim all the purchase price GST on their new car back when they file their next business activity statement.
Tax-deductible interest
Interest on ABN car loan repayments is fully tax-deductible for the duration of the finance term. That’s proportional to business use, of course.
No GST on a balloon payment
There’s also no further GST to pay if a lender offers, and you decide to use a residual amount.
Claim depreciation
You own the vehicle from the start with an ABN car loan, so you can claim depreciation as per ATO guidelines.
No GST on repayments
There is no GST on ABN car loan repayments for the duration of the term.
Why choose Savvy for your car loan?
Compare and save
We are partnered with over 25 reputed lenders nationally to source competitive finance for you.
Fast processing
Using our state of the art technology and systems, we can get your approvals within 24-48 hours.
No obligation
There is no obligation to apply with Savvy. We're here to help you with free quotes for you to compare.
How to apply for an ABN car loan with Savvy?
ABN car loans are a type of low doc car finance whose documentation requirements, as the name suggests, are largely based around the applicant’s ABN. This means you can apply as a sole trader or a business owner when you don’t otherwise have the documents required to qualify for a standard loan. However, these loans aren’t an option open for private vehicle buyers or those looking to go through larger lenders like banks.
To qualify for most commercial car loans, lenders specify a narrow band of document requirements. They need to see a picture of how your business has performed in the recent past, a snapshot of what’s happening right now and an idea of where your sales are heading. This requires a relatively large amount of paperwork including, at the very least, up-to-date accounts, business activity statements, bank statements and tax returns. Low doc ABN car loans allow for some wiggle room and you can use alternative means to satisfy the lender’s requirements, such as:
- A current Australian Business Number (ABN)
- Identification, such as a passport or driver’s licence
- Recent BAS returns, which some lenders will accept from the previous financial year.
- Your business accounts (You can prepare these yourself and they don’t need to be fully up to date)
- Lenders may require that you be asset-backed (have equity in a property or other assets)
- You may be asked to provide a deposit in some cases
You can repay an ABN car loan over anything between one and seven years. Lenders may offer the option of a balloon payment, which can drastically reduce repayment amounts during the term. You’ll need to use your new car for business purposes at least half the time you drive it to qualify for an ABN vehicle loan.
Remember that the fewer up-to-date documents you produce, the higher the lender’s risk – and that always means an increase in the interest rate and fees you’ll pay. Lenders are also more likely to be restrictive in terms of repayment flexibility and the amount of funds they’ll offer. Standard commercial car finance agreements, where you provide current business bank statements, business activity statements, profit and loss accounts give a loan provider a better idea of where your business is at and are cheaper to service as a result.
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