How do I get a Low Doc Vehicle Loan?

Applying for a low doc vehicle loan is easier than a traditional loan and is ideal for self-employed individuals and small businesses. This is because up-to-date financials are not a requirement. It also gives business owners the ability to have more control over their tax returns and other personal financial documents.  A low doc vehicle loan has many benefits. This include fixed interest rates, GST and other tax breaks for ABN holders, easy monthly repayment structure, loan terms lasting up to 7 years and balloon payment options. All these benefits mean that a low doc vehicle loan can work into your budget seamlessly. Our finance experts will sort through the whole process and can even organise a pre-approved low doc car loan for you.

1.  Low Doc Vehicle Loans - ABN Holders Only!

If you are a self-employed individual or a small to medium business you must have an Australian Business Number to operate. To be eligible for a low doc car loan you must also have an active ABN. Most lenders require your ABN to be running for a minimum of 1 year. Additionally, some lenders may also require your ABN to be GST registered. As a GST registered entity, lenders know that you are running a business with a gross turnover greater than $75,000.

2. The Car must be Used in the Business

You must be able to justify that the car will be used for business related use to be eligible for ABN car finance. Vehicle use is classified as 'business related' when the car is used for greater than 50% business use. 'Business use' differs for each individual circumstance. For example, a mobile hairdresser uses a vehicle driving to and from client houses. The car is directly involved in generating an income. Consequently this hairdresser can claim business use. On the other hand a hairdresser with a fixed location drives to and from the salon. This IS NOT considered business use by the ATO. This hairdresser can only claim business related use when driving to the wholesaler to pick up supplies, having a meeting with their accountant and going to the post office.

3.  Documentation required for a Low Doc Vehicle Loan

A low doc loan is just that – low documentation. An up-to-date tax return is not a requirement. However, you will need to provide some proof of income. This may be in the form of bank statements, an accountant’s letter, your latest BAS and/or a profit and loss statement. Every lender has different requirements. Find out more about the requirements for a low doc car loan here.

4. Maintain Good Credit History

Maintaining good, reliable credit history is essential when running a business and applying for finance.  Our top tips – limit your credit enquires, avoid pay day loans, pay your bills on time, and keep an eye on your information. This is because a busy credit file will affect your credit score in a negative way.  At AAA Finance, we assess your finance application and take into consideration your individual circumstances before approaching a lender. This ensures that your credit file has only one enquiry listed from AAA.

5. Know your Budget

Before you begin, you must consider your budget. This is where our car loan calculator tool comes in handy.  It can give you an indication of the monthly car loan repayments on your chosen vehicle.  You can change the loan amount, the term of the loan, the interest rate and even add in a balloon payment option. A balloon option is popular with business owners as it reduces the monthly loan repayment ensuring positive business cash flow.

6. Choose the Right Car and Accessories

Choosing the right car to suit your business needs is essential.  What will the new car be used for? Practical purposes, such as delivery van or tradie Ute. Or is the car more for a marketing standpoint?  Do you want new or used? The benefits of buying new is that new cars come with a warranty, attract lower interest rates and you can have accessories added at the time of purchase. 

Do you need a canopy for the work Ute, specialised tools boxes, van fit out, tow bar, and the list goes on!  Including accessories in the purchase price of the vehicle is a smart idea. This is because the cost of accessories can be included in the finance amount. In addition, adding accessories at the time of purchase, means that your vehicle is set up to suit your business needs. You can hit the ground running with a vehicle adapted for your specific requirements.

7. Get a Finance Expert for your Low Doc Vehicle Loan 

You need a finance expert in your corner.  At AAA Finance, our brokers have over 95 years of combined finance experience.  We are the finance experts!  At AAA Finance we have over 40 different lenders.  From this large panel of lenders, we choose the one that will get you the best deal. We have a lender to suit just about every scenario. Your ABN car finance approval will be at the best possible interest rate, saving you both time and money.

Get in touch with the AAA team today to talk more about what a low doc vehicle loan could do for your business. We are here to answer all your questions and concerns as well as walk through the process with you. Do not hesitate – give us a call today on 07 5493 1222! Or find more information about low doc car finance here.