If you plan on buying a car with an ABN loan, you should have all the necessary information before making a financial commitment. To help you out, our team has put together this article to provide you with everything you need to know before getting an ABN car loan.
At Loantec, we go the extra mile to find you the best type of financing. We compare the interest rates, terms, and conditions of loans from more than 40 different lenders to get you the best loan with the lowest interest rate available. Contact our Finance Technicians today by filling in our pre-qualification form.
Tips to Get Qualified When Buying a Car with an ABN
When you apply for a loan, the lender considers it to be an investment in you paying back the principal with interest. So, anything you can do to demonstrate that you’re likely to pay off the loan will generally help. Here are some tips that can help with buying a car with an ABN.
Pay with a Deposit
The easiest and most straightforward way to get a better loan for any kind of motor vehicle is to apply with a deposit. If there’s less money to be paid back, the lender won’t be taking on as much risk, and you’re likely to get a better loan.
A deposit commits you to paying off the entirety of the loan, otherwise, you’ll lose the deposit and the car.
Have a Reliable Financial Background
Factors such as good credit history, owning property, and long trading history, will look good on an application. If your business has only just started up and can’t demonstrate a profitable trading history, you’re less likely to be approved for an ABN loan compared to a long-running company.
Loantec specialises in helping people with less than perfect credit get finance for their business. To the big banks, you’re just a number. But our team takes the time to get to know you, so we can find the best option for you. After you fill in our pre-qualification form, one of our Finance Technicians will be in touch to discuss your factual options.
Have Separate Personal & Business Banking Accounts
When you apply for business financing, lenders prefer you to have a separate bank account for your personal and business expenses. This indicates that you have good business sense and are unlikely to make personal expenses using company funds.
Register For GST
If your business is registered for GST, it indicates that your company is likely earning more than $75,000 a year.
This gives the lender confidence that you’ll be able to make the repayments. It’ll also help you if you want to apply for a low doc loan.
Read more about Buying a Car With an ABN
- Affordable Low-Interest Business Car Loans
- Everything You Need to Know About Getting a Personal Loan
- A Guide to Loantec’s Debt Consolidation
Buying a Business Vehicle
When you choose to purchase a car using an ABN loan, you’ll need to justify to the lender how it’ll be used for business purposes. The type of vehicle you apply for will influence if your application is successful.
Let’s say you run a landscaping company and apply to get a Porsche. You may get some pushback from the lender or have the application rejected. Alternatively, if you apply for a ute or a commercial van, they’re probably not going to question it.
If you’re thinking about getting a loan, your first point of contact should be the experts at Loantec.
We have access to more than 40 different lenders. Which means we can find you the best deal on the market.
Fill in our pre-qualification form to talk to our Finance Technicians about buying a car with ABN today.
Advantages of Buying a Car With an ABN
There are some unique benefits you can take advantage of when you get an ABN vehicle loan. And you can end up saving thousands if you know how to make the most of them.
Claim Interest as a Tax Reduction
When you make a purchase using an ABN loan, your business can claim the interest you spend on the loan as tax-deductible. If you have a $30,000 loan and it’s paid over 5 years at a 5% interest rate, it’ll result in $4,568 being paid in interest. All of this can be claimed at tax time, leading to some huge savings. Additionally, you can also pay less in tax by claiming GST credits on business vehicles tax as well.
Get a Huge Instant Asset Write Off
Eligible companies can claim an instant deduction for business vehicles. You can write off business expenses, up to $150,000, which can lead you to paying far less in tax. You can also make deductions through the depreciation of business assets, potentially saving you thousands each year.
When you’re buying a car with an ABN, the Loantec team will work through your circumstances and assess all your available options. Our team of experts will then analyse your financial situation and find the best deal for you. Fill in our pre-qualification form and our Finance Technicians will be in contact.