Model your business vehicle finance repayments and compare chattel mortgage, hire purchase, finance lease, and operating lease structures side by side. See GST credits and estimated tax benefits for each structure.
| Frequency | Repayment | Total interest | Total cost |
|---|---|---|---|
| Weekly | $228.05 | $9,293 | $59,293 |
| Fortnightly | $456.35 | $9,326 | $59,326 |
| Monthly(selected) | $990.06 | $9,404 | $59,404 |
Same vehicle, same inputs. Different structures change the tax treatment and total cost.
| Chattel Mortgage | Hire Purchase | Finance Lease | Operating Lease | |
|---|---|---|---|---|
| Monthly payment | $990.06 | $990.06 | $990.06 | $990.06 |
| Total cost | $59,404 | $59,404 | $59,404 | $59,404 |
| Total interest | $9,404 | $9,404 | $9,404 | $9,404 |
| GST credit | $4,545 | On each payment | On each payment | On each payment |
| Est. annual tax benefit | $1,891 | $1,420 | $2,970 | $2,970 |
| Est. net cost after tax | $45,405 | $52,301 | $44,553 | $44,553 |
Tax benefit estimates are indicative only and based on simplified assumptions. Actual tax outcomes depend on your individual circumstances, business structure, and other factors. Consult your accountant or tax adviser for advice specific to your situation.
Switching from monthly to weekly repayments could save you $111 in interest over the life of this finance.
The structure comparison table shows how chattel mortgage, hire purchase, finance lease, and operating lease differ for the same inputs. The tax treatment can make a significant difference to the net cost of the vehicle.
GST registration changes the upfront credit available under a chattel mortgage and the treatment of payments under lease structures. Toggle it to see how it affects each structure.
A higher balloon reduces your regular repayments but increases the total cost and creates a lump sum obligation at the end. Use the slider to see the trade-off across all four structures.
Base rate entities (turnover under $50M) pay 25% company tax. Non-base rate entities pay 30%. The tax rate affects the value of every deduction, so switching between them shows a meaningful difference in net cost.
Most lenders want to see at least 12-24 months of trading history. Newer businesses may need to provide additional financials or a larger deposit.
Lenders review your business financials (profit and loss, balance sheet, or recent tax returns) to assess serviceability. Healthy cash flow is the key indicator.
The age, condition, and value of the vehicle affect the rate and terms. Most lenders have maximum age limits (e.g. no more than 12-15 years old at the end of the loan term).
Your personal and business credit history influences the rate. A clean credit file opens access to the most competitive rates. Some non-bank lenders can work with less-than-perfect credit.
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It depends on your GST registration, cash flow needs, and balance sheet preferences. Chattel mortgage lets you own from day one and claim GST upfront. Hire purchase spreads the GST across instalments. Finance lease keeps payments fully deductible and lets you buy or return at the end. Operating lease keeps the vehicle off your balance sheet entirely.
Yes. Depending on the finance structure, you can claim depreciation (chattel mortgage or hire purchase), lease payment deductions (finance or operating lease), and interest deductions (chattel mortgage). The method and amount depend on the structure you choose and your business circumstances.
Eligible vehicles under the threshold can be fully deducted in the year of purchase. The car limit for the 2025-26 financial year is $68,108. This means the maximum depreciable cost for a passenger vehicle is capped at $68,108 regardless of the purchase price.
The ATO sets a cap on the depreciable cost for passenger vehicles. For the 2025-26 financial year, the car limit is $68,108. If your vehicle costs more than this, your depreciation deductions are calculated on $68,108, not the actual purchase price.
The log book method lets you claim actual vehicle expenses multiplied by your business use percentage. You need to keep a log book for at least 12 consecutive weeks. The cents-per-km method uses a flat rate of 85 cents per kilometre for a maximum of 5,000 business kilometres per year. Log book is usually better if your business use is high or the vehicle is expensive.
Yes. Business vehicle finance is available for sole traders, partnerships, companies, and trusts. You will need a valid ABN and typically 12-24 months of trading history. Some lenders offer options for newer businesses with additional documentation.
Results are estimates only and should not be relied upon for financial decisions. Actual business car loan repayments will depend on the lender, your credit profile, and the specific terms offered. Interest rates used are for illustration purposes only and may not reflect current market rates.
Subject to lender approval, terms and conditions apply.
This calculator is general information only and is not financial advice.