How to get a car loan without proof of income


Firstly, can you get a car loan with proof of income?  The short answer is yes if you are a business owner.  Most business owners are time poor and don’t want to have to produce copious amounts of paperwork to obtain a car loan.  Using a no doc or low doc car finance option may be just the ticket to get you into your new dream work vehicle.  The benefits of these type of car loans are discussed as well as the importance of finding an experienced finance broker to work with your business.

Who can get a car loan without proof of income?

Business owners with an active ABN can get a car loan without proof of income if they intend on using the vehicle for greater than 50% business use.  You can be self-employed, a sole trader, operating under a trust or partnership or have a company business structure.  The entity purchasing the car is required to have an active ABN.  The length of time the ABN has been active and whether the ABN is GST registered play an important role in what type of car loan you will be eligible for.

Types of car loans that do not require proof of income

There are 2 main business car finance options that do not require full financial as proof of income.  The first is a ‘no doc car loan’ and the second is a ‘low doc car loan’.  So, what is the difference between these two? 

No Doc Car Loan

No doc car finance requires absolutely no financial documentation to prove income.  However, you will be required to submit a signed declaration estimating your business gross turnover and net income.  Most lenders will require the ABN to have been operational for more than 2 years and be GST registered.  If a business is GST registered, then they have a minimum turnover of $75,000.  This gives lenders confidence in your business.  The other factor is how long your business has been running for.  A business that has been running successfully for several years is unlikely to suddenly stop being profitable.  Again, length of operation can give lenders confidence that your business will be able to make the loan repayments now and into the future.

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Low Doc Car Loan

Even though a low doc car loan does require some form of financial documentation to prove income it is worthwhile knowing all your options.  The types of documentation that may be requested, for most business owners, are quite easily accessible.  Documentation could include 3 months business bank statements, Business Activity Statement or an accountants letter stating an estimate of gross turnover and net profit.  Full up-to-date financials, such as tax returns, are not required to access a low doc car loan facility.  This option is very popular with small business owners who don’t quite fit the profile for a no doc car loan.

Benefits of no doc and low doc car finance 

  1. No tax return, No worries!  As mentioned above, full financials, including tax returns are not required.  Cut through the red tape and masses of paperwork and get a quick and easy car loan.  
  2. Competitive low interest rates. Business loans attract a lower interest rate than consumer loans.  With interest rates on the rise its good to know that you have competitive options available to you.  Now is the time to lock in your fixed interest rate before further rate rises.
  3. 7-year loan terms.  The amount of time your loan runs for is called the loan term.  Car loan terms vary from 1 to 7 years.  The longer the term the lower your monthly repayment and visa versa.  Our car loan calculator lets you change the term to see how this affects your repayment.
  4. Balloon payment option.  Want to reduce your monthly repayment even more?  By incorporating a balloon payment into your car loan, you can reduce your repayments even further.  Your loan is essential broken into 2 portions.  The first portion is paid back via monthly repayments just like any loan.  The second portion or balloon payment is a lump sum payment due at the end of the loan term.  A balloon payment can range from 10 to 50% of the vehicle purchase price.  Again, you can use our car loan calculator to see the affects of incorporating a balloon payment into your business car finance.
  5. Tax incentives.  The GST on the purchase price of a business vehicle can be claimed in the BAS quarter it was purchased in.  Additionally, any interest on a business loan is also tax deductible.  The Australian Tax Office Instant Asset Write-Off has been very popular with businesses.  Each asset up to $150,000 purchased for use in the business can be immediately written off.  Please check with your accountant to see how each of these can benefit your business.
  6. Free up cash flow.  It is important to maintain positive cash flow and to have a little bit extra set aside for a rainy (or covid) day (or year!).  By financing vehicle and equipment purchases businesses can maintain a reliable and modern vehicle fleet.
  7. Include accessories. Accessories can be included in your finance amount.  Getting the right vehicle fitted out for purpose can improve work efficiencies and ultimately increase your bottom line. 
  8. Have the right vehicle right now!  Does your business need a kitted out tradie ute, a bigger delivery van or do you simply need an upgrade from your current car?  Financing can get you in that car right now.
  9. Set and forget.    Repayments are made monthly via direct debit.  This set and forget process makes it nice and easy for the busy business owner.  As an additional benefit your credit score will not be negatively affected by a late or missed payment.
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How to get a car loan without proof of income

Finding an experienced finance broker that you can trust now and into the future is imperative.  They must have access to a large range of lenders that offer different products and services.  A great finance broker will be able to match your unique situation with a lender that will offer a competitive interest rate and suitable loan terms. 


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