If you’re self-employed, whether you’re a sole trader, contractor, or small business owner, getting a car loan isn’t always as straightforward as it is for someone with a regular payslip. But that doesn’t mean it’s out of reach. With the right approach and documentation, ABN holders in Australia can access competitive vehicle finance options that suit their business needs and cash flow.
In this guide, we’ll walk through how self-employed car finance works, what lenders look for, and how to improve your chances of approval.
Table of Contents
- Why Self-Employed Car Loans Are Different
- Car Finance Options for ABN Holders
- What Documents You’ll Need to Apply
- Tips to Boost Your Approval Chances
- How Capital Plus Finance Can Help
Why Self-Employed Car Loans Are Different
When you’re self-employed, your income can vary month to month, and you don’t have payslips to prove your earnings. That makes some lenders more cautious, even if your business is thriving.
Instead of fixed salary slips, lenders will focus on:
- How long you’ve held your ABN
- Your business revenue and expenses
- Your ability to meet repayments consistently
- Your credit history and any existing debt
The key is being able to show that your business is stable and profitable enough to repay the loan—whether you’re after a ute, van, or family car.
Car Finance Options for ABN Holders
Here are the main car finance options available to self-employed Australians:
🚗 1. Chattel Mortgage (Business Car Loan)
One of the most popular choices for ABN holders using the car mainly for work. You own the vehicle upfront, and the loan is secured against it.
Key benefits:
- Lower interest rates
- Potential GST input tax credit on the purchase price
- Depreciation and interest tax deductions (check with your accountant)
🚗 2. Low Doc Car Loans
Designed for self-employed people who may not have all the standard documentation. Instead of full financials, lenders may accept BAS statements, bank statements, or accountant declarations.
Best for: Sole traders or contractors with fluctuating income or newer businesses.
🚗 3. Lease or Hire Purchase
Alternative structures where the lender technically owns the vehicle during the loan term. These can work well for businesses that prefer to lease and upgrade vehicles every few years.
🚗 4. Consumer Car Loan (if not for business use)
If the vehicle is mainly for personal use, a standard consumer car loan may be more appropriate—even for ABN holders. Just note that tax benefits may not apply.
What Documents You’ll Need to Apply
While the exact requirements vary by lender, most will ask for:
- ABN (active for at least 6–12 months preferred)
- Driver’s licence and ID
- Recent BAS or tax returns
- Business bank statements (usually last 3–6 months)
- Asset and liability statement
- Proof of vehicle details (quote or invoice)
Some low doc lenders may accept fewer documents, but expect to pay slightly higher interest rates in return for the flexibility.
Tips to Boost Your Approval Chances
To improve your chances of securing a good car loan:
- ✅ Keep your ABN active and in good standing
- ✅ Maintain clean, up-to-date business records
- ✅ Reduce existing debt and avoid late payments
- ✅ Build a good credit score
- ✅ Have a deposit ready (even 10% helps)
- ✅ Choose a vehicle suited to your business type
Also, think ahead. Choose a loan term and repayment amount that fits your seasonal cash flow if your income fluctuates.
How Capital Plus Finance Can Help
At Capital Plus Finance, we work with over 40 lenders to help ABN holders and self-employed business owners find the right vehicle finance option—whether you’re a tradie, sole trader, or small company owner.
We can help you:
- Compare low doc and full doc loans
- Secure chattel mortgages with tax benefits
- Structure repayments around your income cycle
- Understand your loan eligibility based on your business setup
👉 Contact Capital Plus Finance today to get personalised help with self-employed car finance that suits your business.
About Capital Plus Finance
We’re a Sydney-based equipment and vehicle finance broker helping Australian small business owners access funding for cars, utes, trucks, machinery, and more. Whether you’re after a small business loan, equipment finance, or ABN car loan, we’ll help you get the right solution. Visit capitalplusfinance.com.au to learn more.
