Business car finance

If you’re a small business owner, partnership or sole trader, the decision to buy a new car and getting a car loan can be difficult. On one hand, a new car might make it safer and more efficient to travel from point A to B, whether that be between jobs, client meetings or work sites.

On the other hand, cash flow in any small to medium business is always top of mind. Then there’s tax. How can you be sure your new business car loan is delivering maximum tax benefit for your business?

Although we can’t give you tax advice (you can talk to your financial or taxation advisors for that) we can help you to learn more about our business car loans so that you can decide whether they’re right for you.

Is the loan right for your business?

Running a small to medium business can be tough with so many decisions you need to make. And when it comes to financial decisions, making the right choice is crucial.

A Power Alliance Finance business car loan, also known as a chattel mortgage, offers a fixed rate loan that’s designed specifically for businesses.

You can finance any type of vehicle including used cars up to seven years old. One great benefit is that you keep the car as an asset of your business, even while you’re paying it off.

How much will it cost?

At Power Alliance Finance, we’ll calculate your interest rate using a sophisticated algorithm and based on your credit score and other relevant factors determined by us.

The great news is that your repayments are then fixed for the term of the loan, so you’ll always know how much you have to pay. That way, budgeting is easier and you’ll never receive any surprise bills.

Are there any tax implications?

With a business car loan, you’ll have opportunities to make your car purchase work for your tax.

If your business is registered for GST, you may also be able to claim part or full input tax credit for any GST on the purchase of the car for use in your business.

You’ll need to speak to your financial or taxation advisors for any tax advice.

How can I manage my cash flow?

Cash flow is a major consideration for any small to medium business.

With this in mind, you may choose to add a balloon payment to your business car loan. This option allows you to make lower monthly repayments during the term of the loan, then a larger single repayment at the end of the loan.

Some businesses choose to trade in or sell the car at the end of the loan to cover that balloon amount.

So head to a dealership which offers Power Alliance Finance and find a car loan that’s right for your business.

How flexible are our business car loans?

We love a bit of flexibility and we’re sure you will too.

Firstly, there’s the length of the loan which can range from one right through to seven years.

Then there’s payment options – monthly, fortnightly or weekly. Just talk to your dealer to find out what’s possible. We want your business car loan to work for you.

The amount of deposit you put down is also flexible, so if you’ve got a bit of spare money, it might be worth asking your dealer how it will lower your repayments.

And, as mentioned above, you can ask about a balloon payment.

What else can we offer?

We understand buying a car for your business can be a big commitment, so we want you to have peace of mind that our process gives you confidence for the road ahead.

Transparency is a big part of how we operate, which includes things like always being upfront about our fees and charges.

You’re in business and we’re in the business of car finance. So, head to a dealership which offers Power Alliance Finance and find a loan that’s right for your business.

Disclaimer

Approved applicants only. Terms, conditions, fees, charges & lending criteria apply. Power Alliance Finance is a division of Australian Alliance Automotive Finance Pty Limited ABN 63 002 407 703, Australian Credit Licence 513747.