Getting the ute you want for your business
If you’re a business owner there are loads of potential benefits to purchasing a ute or vehicle for your business. Beyond the obvious use of the ute to generate income, there are many vehicle expenses that can be claimed as well.
In addition, qualifying for ute finance is easier these days with the amount of lenders supporting newer to established abn holders. This can include 1 day business continuance ABN opportunities to businesses with 6 months or more of trading activity. Check out current rates across the different types of business loans here.
Whether you are a new business or established, have good or bad credit, there are different options to acquire a ute for your business. The bottom line is that you need to be able to show that your business can afford the repayments and has steady work.
Benefits of a ute for business
Benefits for purchasing a ute or vehicle will be dependant upon your business structure and how the vehicle is used. Potential benefits may include the following:
- Income generating asset
- Running costs (fuel, oil, tyres, etc)
- Repairs and servicing
- Interest on the vehicle loan
- Lease payments
- Depreciation of the vehicle over time (decline in value)
- Resell value
- Fringe Benefit Tax (benefits given to employees in place of a portion of their salary)
- Instant Write-Off Scheme
Speak with an accountant or finance specialist to get a complete understanding of what type of savings from the above you may be entitled to.
Which utes & vehicles are eligible for the Instant Asset Write Off
The instant asset write off has changed over the years based on different market conditions. At the moment, there are two different caps for vehicles based on type.
Classification types are:
-Vehicles priced up to $57,581 (car)
-Vehicles priced above $57,581 up to $150,000 (other vehicle)
Other vehicles which could fall into the higher price threshold would include those that carry more than 9 passengers or have a pay load of 1 tonne or higher.
Types of business utes under $57,581
There are many light to mid sized utes that come in under $57,581. Especially if purchasing the base model of these vehicles. Some brands to consider include:
- Mitsubishi Triton
- Isuzu D-Max
- Ssangyong Musso/Musso XLV
- Ford Rangers
- Holden Colorado
- Mazda BT-50
- Nissan Navara
- Toyota Hilux
- Volkswagen Amarok
Types of business utes between $57,581 – $150,000
Depending on need, there are definitely some business utes that exceed the $57,581 price threshold. Below are some luxury and heavy duty ute examples.
- Ram 1500
- Ford Ranger Raptor
- Ford Ranger Wildtrak
- Toyota Landcruiser
- Toyota Rugged X
- Chevrolet Silverado 1500
- Chevrolet Silverado 3500
- Volkswagen Amarok Ultimate 580
For full details on the Instant Tax Write Off and how it works, speak to your account, a finance specialist or visit the ATO website about the scheme here.
Accessing ABN approved finance for a business ute
There are numerous ute finance options available to ABN holders. Finance to assist business owners at any stage of their business growth. Types of work ute loans include:
+Bad credit ute finance
+Traditional secure asset finance
+Low or no doc ute or vehicle loans
To quickly compare the above loan options based on your situation, visit our ABN approved loans section for vehicles and equipment – Check to see how much you qualify for!
Ute Finance Designed For ABN Holders
At Comparison Australia we make financing a ute or vehicle for your business simple. No hassle for all businesses regardless of size, time in business, industry, or location.
Access the best business vehicle loans & get the lowest rates across 70+ lenders & banks.
Lenders Supporting Business!
- GST & tax breaks for ABN holders
- No deposit or paperwork options
- Approvals & funding in as little as 24hrs
- Secure or unsecure loans
- Purchase new/used vehicles or equipment
Applying For A Ute Business Loan
People also asked
How do I finance a ute with my business?
You can finance a new/used vehicle or equipment through your ABN (business) with most lenders. The main criteria is to be able to prove to lenders and the ATO that it will be used for business purposes and qualify for the loan.
With regards to lenders, borrowers can access both full doc or low doc ABN finance options and in some cases half doc.
Full doc finance is a traditional loan and may require a large amount of paperwork; including tax returns, bank statements, business activity statements and up to date accounts. Rates for full doc loans are often lower than low doc finance.
Low doc finance is popular as it requires less paperwork along with a bit more flexibility in approvals. General lender requirements for low doc finance may include; recent BAS or from previous year, summary of business accounts, possibly a deposit or be asset backed.
Half doc finance is obviously in the middle of the other options, typically requiring documents like a BAS + 6 months bank statements.
In all cases the better your credit the better your rate and chances of approval.
A quick chat with the Comparison Australia team can quickly highlight options across our large panel of lenders.
Are there any purchase restrictions on business car loans?
Each lender will have its own criteria based on the age of the vehicle/equipment, LVR amount and credit assessment. In most circumstance the newer the vehicle or equipment the better for approvals. There are however certain lenders that specialise in funding older or unique vehicles and equipment.
Comparison Australia’s partners have access to 70+ lenders and banks making it easier for borrowers to find a lender that will fund most things.
Is a ute cheaper with an ABN?
The overall costs of owning a vehicle through your business can be cheaper as there are GST & other tax breaks available.
How long does a business need to be trading to get business vehicle finance?
Most lenders prefer your ABN be active for at least two years. However, there are certain lenders that will accept 1 year ABN’s or less based on different circumstances such as ‘business continuance’ or strong cash flow.
A quick chat with Comparison Australia partners can provide current options across different lenders and their ABN length requirements.
What type of insurance do I need if purchasing a vehicle through my ABN?
You’ll need to get a comprehensive car insurance policy just like you would if purchasing an normal vehicle, so it’s important to factor that into your budgeting.
What are business car loan requirements?
The below are general requirements a lender may request.
You’ll first have to confirm that:
– You are a active ABN holder
– That the vehicle will mostly be used for business purposes (i.e. more than 50% of the time)
Proof of Identity (one or multiple of the following)
– Drivers licence
– Passport or Proof of age card
– Valid Medicare card
– Valid credit card or debit card
– Can also use a valid Veteran card
Documents can include any of the following:
– Proof of residence via a rates notice
– Financial statements (ideally from an accountant)
– Bank statements (generally 2 months, possibly more)
– Recent Business Activity Statement (BAS)
– ATO Tax Agent portal report (generally for a trading period)
– Accountants letter confirming business activity
– Depending on trading structure: Income tax return and/or Personal tax return (1 financial year)
Other documents may be requested based on individual business circumstances. For those that may have a difficult time producing these documents, a low or half doc loan may be preferred.
Speak to a Comparison Australia partner to quickly learn about ABN finance options and what documents will be needed.
How fast can I get an ute business loan?
Depending on lender and what your after, there are very quick turnaround times for business related loans. In certain circumstances borrowers can receive unsecure funds in the same day or within 24 hours. Borrowers after a secure loan for a vehicle or equipment can get funding as quick as 24 to 48 hours.
Quick funding is dependant on having all documents required by the lender ready to go for immediate assessment and approval.