Contact Us
Chattel Mortgage and Car Loans for Business Growth

Car Loans

Car loans can be obtained for business or private use. If you need car financing in Melbourne for a business vehicle, there are different options available, including:


A novated lease can be taken out on a new business vehicle as part of a tax-effective salary packaging arrangement for you or your staff. Ownership of the vehicle remains with the lender. Repayments are deducted from you or your employee’s before-tax salary.


Chattel mortgage car finance is another option for financing a new business vehicle. It involves a lender providing you with a loan that is secured against the vehicle via a mortgage. With chattel mortgage car loans, interest and fees on a business vehicle are tax-deductible against business income.

However, it’s important to understand that like any secured loan, the lender can repossess a vehicle under a chattel mortgage arrangement if you default on your regular loan repayments. When you have repaid the loan in full, the lender releases the mortgage.


A hire purchase agreement for a business car involves you hiring it from the lender for an agreed term. When you make your last hire payment, the ownership of the vehicle transfers to your business.

Key Business Car Loan Considerations

The right car loan in Melbourne will depend on your individual business needs and financial situation. Key considerations include:

  • Interest rates, fees and other finance terms and conditions
  • Repayment flexibility to suit your business’ cash flow
  • The potential tax benefits provided by novated leases


  • The finance term (which usually ranges from one to seven years)
  • Whether it’s better to own or lease your car (for example, leasing your vehicle may allow you to upgrade more easily when the lease term expires)

What is a Residual (Balloon) Payment?

A residual (balloon) payment is a way that you can reduce your car loan repayments during your finance term, in return for making a single larger (balloon) payment at the end of the term.

For example, if you borrow $40,000 for a new business vehicle via a five-year chattel mortgage, you could arrange to pay $30,000 over five years with regular monthly repayments, and a single $10,000 residual (balloon payment) at the end of the five-year term.

However, if you structure your repayments like this, it’s important that you structure your business finances to ensure that you can afford the final residual (balloon) payment amount.

Information That You Need When Applying for Business Car Financing

You’ll need to supply the following information when you’re applying for business vehicle finance in Melbourne:[readmore]

  • Vehicle details (including make, model, year, colour, VIN number, engine number, registration number and purchase price)
  • Your business’ financial information to demonstrate your ability to make your repayments
How ARG Finance Can Help

How ARG Finance Can Help

Car financing is an important decision for many businesses, especially if you have a fleet of vehicles. It’s important to understand the pros and cons of different car financing options so that you can choose the most appropriate one for your business.

It’s also important to understand that even a small difference in the terms and conditions of a car-financing option can make a big difference to your repayments and to your business’ cash flow.[readmore]

At ARG Finance, our experienced car finance broker in Melbourne can help you to find the right option. We’ll take the time to understand your business’ needs, goals and financial circumstances before recommending an appropriate lender and car financing option for you.
Contact us today to find out how we can help your business with a car loan in Melbourne. You can also use our car loan borrowing calculator to calculate your car loan borrowing power.

Frequently Asked Questions


You can apply for a commercial car loan directly with a lender, but this can be challenging for those who aren’t familiar with the process. Alternatively, you can get advice and assistance from a car loan broker in Melbourne who has experience helping clients to navigate the steps involved. This gives you a much better chance of getting the right loan and reasonable car loan interest rates.


You can do a PPSR check to determine whether there are any outstanding loans on the vehicle. This helps you avoid having your new car repossessed for someone else’s debt.


You can finance a commercial vehicle through various methods. Traditional options include bank loans and credit unions, offering fixed interest rates and regular payments. Alternatively, leasing allows you to use the vehicle for a set period by making monthly payments. Consider your business financials when choosing the right option for your needs.


There are multiple ways to calculate finance charges on a business car loan. You can use a car loan borrowing calculator to help you work out monthly payments or do it manually by multiplying your monthly payment amount by the number of payments, minus the amount borrowed. Various factors can affect your finance charges, so it’s a good idea to talk to a broker for advice.


A car loan involves borrowing money to purchase a vehicle, with the borrower responsible for repayments and ownership. A novated lease, on the other hand, is an arrangement where an employer leases a vehicle for the employee, with payments deducted from the employee’s pre-tax salary. Unlike a car loan, a novated lease offers potential tax benefits and includes maintenance costs.

Enquire Now

One of our team members will contact you shortly.

You can unsubscribe from these communications at any time. For more information on how to unsubscribe, our privacy practices, and how we are committed to protecting and respecting your privacy, please review our Privacy Policy.