Things Required If Your Car Is Financed By A Company

The basic document requirements when applying for car finance in Brisbane are identity papers, a current drivers licence or passport, a document to show you have Australian residency, both your passport and drivers licence confirm these.

You also need documents to show that you have the capacity to replay the load and that you have a good credit rating.

Because you will most likely be using the vehicle you’re buying as a security for the loan, lenders will require that you have a full comprehensive insurance cover to protect it.

The other supporting things you will need depend on the lender

• If you are employed

For people who are employed the process tends to be easier as showing you have the capacity to repay the loan can be done by showing at least two of your resent wage slips to show your income and employment status

Your drivers licence will give your residency status and identification

• If you own a business or are self employed

You will need slightly a different set of paperwork when self employed or if you own a business, you still need your identification and c comprehensive car insurance cover for the vehicle, but you will also need to provide:

• Income verification

Some lenders, especially if you’re applying for a lodoc loan, will accept a self declaration that states in writing that you are earning from your business the amount of income as stated on your loan application.

The majority of lenders require documentary evidence such as your tax returns or a financial statement from your accountant

• Proof of business use

You will require a letter from your accountant a company you contract tour your employer that the vehicle you’re buying will be mainly used for business purposes

It’s important that you make sure that all your supporting paperwork is complete and current before you apply for your loan.

It pays, to you check with your lender to see if they will accept all your paperwork and find out if there are any additional papers you can supply to improve your chances of having your loan application approved.

If your loan application is declined for any reason it will be noted on your credit rating and could affect your chances of getting a loan in the future

Almost all types of vehicle loans include

• The principle amount or the amount you are borrowing
• The terms of the loan, the length of time you borrow the money for
• The amount of interest, the amount you repay on top of the principal repayments. The amount of interest is determined at the start of the loan
• The repayment frequency, how often you are required to make your repayments, such as monthly repayments

If you are purchasing your car for work and from a dealership you can claim back some of the GST you paid via your Business Activity Statement to a maximum of $5,234

You can claim depreciation on a work vehicle, reducing your tax burden

Interest on a business car loan as it’s a legitimate business expense

To qualify for a work/business or a Chattle loan you need to have:

• An ABN (Australian Business Number)
• To be registered for GST
• A good credit rating or history
• The documents to prove your ID, income and repayment capacity