Vehicle and Equipment Finance

FAQs

• What is a goods loan?

  A goods loan (sometimes referred to as a chattel mortgage) is the most popular type of business vehicle finance. With a goods loan, you source the vehicle and your business owns the vehicle from the beginning of the loan term without tying up valuable working capital. The loan is generally secured against the vehicle and your business can usually claim the interest on payments and depreciation if the vehicle is used to produce income.​
• What is a hire purchase?

  A hire purchase is an agreement between your business and us (the Bank) to buy a vehicle over an agreed period of time. We buy the vehicle at your request and give your business possession and use of it in return for regular payments. When all the repayments and the final payment is made, ownership of the vehicle is transferred to your business. Your business can usually claim the interest on payments and depreciation if the asset is used to produce income.​
• What is a lease?

  A lease allows you to use the vehicle for an agreed period of time. We buy the vehicle at your request and rent it to you for the agreed period. Once this period ends, you return the vehicle to us. Your business can usually claim the lease payments if the asset is used to produce income.​
• Are there potential tax benefits?

  Goods loan: The interest on the finance and depreciation of the asset are generally both tax deductible.²​

  Hire purchase: The interest on the finance and depreciation of the asset are generally both tax deductible.²​

  Lease: The rental payments are generally tax deductible.²
• Can I claim car depreciation if I have a business car loan?

  Under a goods loan (chattel mortgage) and hire purchase, interest on the finance and depreciation of the asset are generally both tax deductible.^1​
• What are the interest rates?

  Interest rates and repayments vary depending on a number of factors. Some of these may be: ​

  • Which finance option you choose ​
  • Type and age of the asset being purchased ​
  • Term of the finance agreement.
• What is a balloon payment?

  A balloon payment is an amount due at the end of your loan. Balloon payments are sometimes referred to as a final repayment amount. While not all business car loans will have a balloon payment, they are a popular option. ​

  Balloon payments can be helpful if you need to reduce your loan repayments, making your regular repayments lower. This helps you get the vehicles your business needs without tying up cashflow. ​

  While having a balloon payment will reduce your monthly repayments, you’ll be left with a lump sum to be paid at the end of the loan. You'll also end up paying more interest over the life of the loan.​

  This means your loan won't be fully paid off by your monthly repayments as you’ll still need to pay the lump sum leftover to close out the loan. ​
• What is the maximum loan term?

  Loan terms depend on the repayment amount you can afford. If you have a loan term in mind, make sure you let us know. ​

  Loan terms generally range from 1-7 years. ​

  If you're purchasing a used or second-hand vehicle - the loan term may be shorter depending on the age of the vehicle. ​

  Remember, the longer the loan term - the more interest you will pay. ​
• What type of business vehicles can I get finance for?

  Most vehicles are eligible for finance, including¹: ​

  • Trucks ​
  • Cars ​
  • Utes ​
  • Motorbikes ​
  • Vans.
• Is there a minimum loan amount?

  Yes, the minimum loan amount is $15,000.