Low Doc Car Loans
AAA Finance specialises in providing business owners with quick and easy low doc car loans. Our experienced finance brokers will save you both time and money. Experience the AAA difference - competitive interest rates, loans approved within 24 hours, easy application process and access to over 40 lenders.
What is a Low Doc Car Loan?
A low doc car loan is a type of business loan called a chattel mortgage. Low doc car loans are only available to self-employed people and businesses with an ABN. This includes sole proprietorships, sole traders, partnerships, trusts and companies. This type of loan is particularly beneficial for business owners who do not want to provide extensive financial paperwork. In fact, low doc means only a small amount of documentation is required to secure car finance. For a deeper understanding of low doc ABN car finance be sure to read our comprehensive blog.
At AAA Finance we have an experienced team of finance brokers, with access to over 40 different lenders. If saving time and money is important to you, then let AAA Finance organise your next low doc vehicle loan.
More about low doc car loans ...
- What are the benefits of low doc car loans?
- How much will my car loan repayments be?
- What are the requirements for a low doc car loan?
- How do I apply for a low doc car loan?
- Low doc car loan FAQs
Experience the AAA difference Today!
- Competitive interest rates.
- Loans approved within 24 hours.
- Easy application process.
- Qualified finance experts.
- Access to over 40 lenders.
- $10,000 to $250,000.
- AAA customer service!
Who is Eligible for a Low Doc Car Loan?
Eligibility for a low doc car loan typically requires meeting 6 key criteria.
- ABN
- Business Use
- Documentation
- Proof of Income
- Good Credit Score
- Deposit / Low LVR
Firstly, you must have an active Australian Business Number (ABN), as these loans are specifically designed for business purposes. In addition, the vehicle your are purchasing must be used 'predominantly' for business purposes. That is, more than 50% of the time for business related use.
Essential documentation, such as identity verification and a privacy form, is required to process the application. Low doc car loans are designed to accommodate borrowers who may not have the standard documentation typically required for traditional loans. However, lenders still need assurance that the borrower can manage the loan, so they assess income through alternative means. Generally income requirements can include recent bank statements showing regular deposits, an accountant’s letter verifying income, or Business Activity Statements (BAS). Although these loans are more flexible, demonstrating consistent cash flow is crucial to proving your ability to repay the loan.
A good credit score is also crucial, as it reflects your financial responsibility and influences the terms of the loan. Lastly, a deposit to reduce the Loan-to-Value Ratio (LVR) is often necessary. A lower LVR reduces the lender's risk and can help secure a more favorable interest rate.
Find out more about the the eligibility criteria here.
What are the Benefits of Low Doc Car Loans?
One of the primary benefits of low doc car loans is the minimal paperwork requirement. This makes the application process much simpler and faster than traditional loans. For self-employed individual or those with irregular income streams, this flexibility can be a lifesaver. Lenders focus on alternative documentation like bank statements or an accountant's letter rather than requiring detailed tax returns or payslips. This streamlined process not only saves time but also leads to a speedy loan turnaround, often enabling borrowers to access funds and purchase a vehicle much quicker.
For ABN holders, low doc car loans offer additional perks such as GST and other tax breaks, making them an appealing option for business owners looking to finance a vehicle. These loans also benefit from fixed low interest rates, providing predictability in monthly repayments. Borrowers can choose loan terms lasting up to 7 years, offering long-term flexibility. Additionally there is the option of a balloon payment at the end of the term to reduce monthly repayments. Overall, this combination of benefits makes low doc car loans a practical and attractive choice for eligible borrowers. To explore the advantages of choosing a low doc car loan, check out our blog on What are the Benefits of a Low Doc Car Loan?
How Much Will My Low Doc Car Loan Repayments Be?
By gauging the amount you wish to borrow, the term of your car loan and an approximate interest rate, our car loan calculator will tell you just how much you are likely to be paying each month. This is therefore an important tool for planning ahead and making sure you get a car loan that perfectly suits your financial situation. A number of factors determine your interest rate. Specifically these include your credit history, loan to value ratio, ABN status and if you own property.
What is a Balloon Payment and How Will it Affect My Loan Repayment?
A balloon is a lump sum payment due at the end of your loan term. By including a balloon repayment in your loan it reduces your monthly loan repayment. This makes it easier to upgrade your car while still maintaining cash flow for your business. You can either pay out the balloon at the end of the term or refinance it. Our car loan calculator with balloon payment function demonstrates how this type of loan structure can work for you.
What are the Requirements for a Low Doc Car Loan
There are a number of items required to secure a low doc car loan. Although low doc loans do not need full up-to-date financials, some proof of income is still required. This may be in the form of bank statements, Business Activity Statement (BAS) or simply an accountants letter verifying income. Other requirements include proof of identification, signed privacy form and vehicle invoice. Identification is usually government issued drivers licence and Medicare card. A signed privacy form allows a lender to check your credit file and the vehicle invoice contains important information of the vehicle being purchased including the VIN number. Lastly the vehicle will need to be comprehensively insured before the finance is finalised and you will need to provide a certificate of currency as proof of insurance. Find out more about low doc car loan requirements in our comprehensive blog.
How Do I Apply for a Low Doc Car Loan?
It is as easy as picking up the phone and speaking with one of AAA's experienced finance brokers. An over the phone application takes only 5 minutes. Alternatively fill out the online contact form and will be in touch. We can even organise a pre-approved low doc car loan. This allows you to go car shopping with the knowledge that your funds are approved.
AAA Speedy Loan Turnaround Time
- Application - approximately 5 to 10 minutes over the phone.
- Approval - most low doc finance loans have an approval within 24 hours.
- Decide on your car - you can purchase privately or from a dealer.
- Settlement - transfer of funds occurs overnight to the seller.
With so many benefits available, a low doc car loan is a must for any self-employed business owner with an ABN. If a low doc car loan is something that you would like to find out more about, then please call AAA Finance on 07 5493 1222 today. We also do no doc car loans for asset backed ABN holders.
Low Doc Car Loans FAQ's
Q: How long do I need to have an ABN running to qualify for a low doc car loan?
A: Every lender is different, however, the minimum requirements for a low doc car loan is 1 year ABN and 1 year GST registered.
Q: Does the vehicle purchased using a low doc car loan have to be used for business?
A: Yes, in fact the vehicle must be predominately for business use. 'Predominately' is greater than 50% businesses related use.
Q: How long does a low doc car loan approval take?
A: Low doc car loan approvals take 24 hours.
Q: What do you need for a low doc car loan?
A: Every lender has different requirements. However, you MAY need to provide some proof of income. This could be in the form of bank statements, profit and loss statement, BAS and/or tax return.
Q: How does low doc car finance work?
A: This type of business loan uses the car as security. Monthly repayments are paid over an agreed term at a fixed interest rate. The main difference is that this type of loan negates the need to up-to-date tax returns, reducing the amount of paperwork required to prove income.
Q: Is it hard to get a low doc car loan?
A: No. They avoid unnecessary paperwork and the need for up-to-date financials which makes the process of getting a loan much simpler for time poor business owners.
Q: How much deposit do I need for a low doc car loan?
A: Deposits range from 0% to 30% and depend on the applicants overall profile, the lender and the asset.
Q: Do low doc loans have higher interest rates?
A: No – This type of loan is very competitive and attracts the same interest rate as a full doc loan. In fact, they usually have a lower interest rate than consumer loans.
Q: What information do I need for low doc finance?
A: You will need to complete a standard application, provide proof of your identity (drivers’ licence and Medicare card) as well as your residential address (rates notice or tenancy agreement). The documentation depends on the lender and may also require an applicant to prove income. While proof of income varies between each lender it may simply be a declaration of income, bank statements or BAS.
Q: Can I use a Low Doc Car Loan to buy a used car?
A: Yes - you can buy a second hand car from either a dealer or privately.
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Disclaimer
* Your actual interest rate will be based on a number of factors, including the type and age of the asset you are seeking to purchase; the information you provide during your application and the term of the loan. This rate may be different from our lowest advertised rates. The Comparison Rate is calculated on a Secured Loan of $50,000 fixed for a term of 5 years, effective 27/05/2024 and subject to change. The Comparison Rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts may result in a different comparison rate.
