Business Car Loans

Business Car Loans

Applying for a business car loan can be intimidating if you approach it unprepared. After all, you’re applying for commercial purposes, and it’s expected that you’ll have different requirements. Will you need to furnish copies of your business documents, or will personally securing the loan be enough? Will the loan expenses be tax deductible? Are business car loan rates higher or lower than personal ones?

Having a starting point can take a lot of the guesswork out when it’s time to commit to a loan. Here are some points you’d want to keep in mind when you get started on commercial car finance.

How do I apply a car loan for business use?

The application process for a car loan is similar to a personal car loan application but with extra steps. The following are some of the common requirements you can expect to meet when you apply for a business car loan.

• Proof of identification (such as government-issued ID cards, passports) 
• Insurance (some lenders may prefer you already have an insurance provider in place) 
• Proof of business ownership or proprietorship (registration, licence, or other related paperwork)
• Personal financial statements ( such as bank statements or credit history reports)

For start-ups and sole traders, it will help greatly to have at least two years of financial statements to show when you apply for a commercial vehicle loan. Depending on the lender, lease agreements for physical stores or projected cash flow for service businesses may also add to your negotiating power.

The best way to determine which loan is best suited for your business is through car loan comparisons – but not everyone has the time to sort through the thousands of commercial car loans in the market. That’s where CarClarity comes in.

CarClarity is the first Australian online auto loan company to develop innovative smart loan matching technology. The smart tech filters through over a thousand loan options provided by our auto loan partners, matching you to the best car loans suited to your profile. All you need to do is complete the application form on our website, and we’ll do the rest of the work for you.

Thanks to our smart loan matching technology, we can get you pre-qualified for the top-matched business car loan offers you get through us. The best part is that CarClarity only soft-calls your credit profile, meaning it doesn’t affect your score the way more invasive hard-call credit checks do. You’re also not obligated to commit to any of the loan terms you’re shown if you decide not to commit just yet.  
 


We strive to help you make well-informed decisions, so the moment you find suitable commercial car loan rates from our partners, you can act quickly and claim that great deal before anyone does.  

If you prefer direct financing for private sellers or dealers, CarClarity is more than happy to help organise loans for amounts of $5,000 up to $250,000. Get in touch with our car loan experts and enquire about eligibility or loan terms. We’ll be more than happy to help.

Is a commercial car loan tax deductible?

CarClarity is not authorised to dispense legal advice on taxation matters; consider these answers as peer suggestions for personal car loan management only.

That being said, if you want to include regular repayments on your car loan as taxable income, you must first have a licenced, registered, or otherwise regulated business first. This will be the basis of whether or not your business car loan is tax deductible or not, as well as any exemptions or exclusions your business or car loan may qualify for.

Once you have all your papers in order, consult with an accountant or independent tax specialist to find out if you can claim a tax deduction or exemption for your specific circumstances. Make sure to do so at least once or twice each year: tax impositions and exemptions might change without much notice, and you’ll want to stay updated to avoid owing taxes you aren’t aware of.

The Australian Taxation Office regularly posts information on their website regarding which company car loan expenses are taxable and which aren’t. The ATO will require you to submit receipts, lease or hire-purchase agreements, and vehicle registration when you file your taxes. Any lacking documentation may lead to tax claim rejections or even owing state taxes on your business car loan.

Can I buy a car through my business even as a sole trader?

You can apply for or include your finance for a car loan as a business expense, even as a sole trader.

There are some nuances to how you can claim your deductions as a sole trader compared to a brick-and-mortar business proprietor.

Keeping detailed records of your business expenses is crucial, particularly if you run your business out of your home and want to claim regular payments on a business car loan on your taxes. Your records will also be heavily referenced when you change or update your vehicle registration for commercial use.

However you decide to finance your company car loans, it’s important to remember that loans should be a partnership.

By bringing customers and loan providers closer with just a few clicks, CarClarity provides a smoother and more streamlined solution for powerful auto loan searches at a lowered risk to your credit score. With our smart technology and over a thousand vehicle financing offers from over forty auto loan partners to choose from, CarClarity aims to become the one-stop shop for car loans in the country.

When it comes to vehicle financing, CarClarity does the loan search heavy lifting for you so you can focus on your livelihood and loved ones. Fill out our form today, and we’ll show you your top matches related to a business car loan.