What do I need to get a low doc car loan?
Applying for a low doc car loan is easier than a traditional loan and is ideal for self-employed individuals and small businesses. This is because up-to-date financials are not required. It also gives business owners the ability to have more control over their tax returns and other personal financial documents. There are many benefits associated with a low doc car loan. This include fixed interest rates, GST and other tax breaks for ABN holders, easy monthly repayment structure, loan terms lasting up to 7 years and balloon payment options. All these benefits mean that a low doc car loan can work into your budget seamlessly. Our finance experts will sort through the whole process and can even organise a pre-approved low doc car loan for you.
1. ABN holders only!
You must have an ABN running for a minimum of 1 year. If you are a self employed individual or a small to medium business you must have an ABN. Additionally, some lenders will also require your ABN to be GST registered.
2. The car must be used in the business
To get a low doc loan the car must be used for business related use. A vehicle is deemed business related if it is used for greater than 50% business use.
3. What documentation is needed for a low doc car loan?
A low doc loan is just that – low documentation. While an up-to-date tax return is not required, you will need to provide some proof of income. This may be in the form of bank statements, an accountant’s letter, your latest BAS and/or a profit and loss statement. Every lender has different requirements.
4. Maintain good credit history
Maintaining good, reliable credit history is essential when running a business and applying for finance. Our top tips – limit your credit enquires, avoid pay day loans, pay your bills on time, and keep an eye on your information. This is because a busy credit file will affect your credit score in a negative way. At AAA Finance, we assess your finance application and take into consideration your individual circumstances before approaching a lender. This means only one enquiry is made on your credit file.
5. Know your budget
Before you begin, you must consider your budget. This is where our car loan calculator tool comes in handy. It can be used to give you an indication of what the monthly car loan repayments will be on your chosen vehicle. You can change the loan amount, the term of the loan, the interest rate and even add in a balloon payment option.
6. Choose the right car
Choosing the right car to suit your business needs is essential. Will the car be used for practical purposes, or just for a marketing standpoint? Do you want new or used? The benefits of buying new is that new cars come with a warranty, attract lower interest rates and you can get accessories added at the time of purchase. Do you need a canopy for the work ute, specialised tools boxes, van fit out, tow bar, and the list goes on! These accessories can be added to the purchase price of the vehicle and included in the finance amount. Adding accessories at the time of purchase, means that your vehicle is set up to suit your business needs and you can hit the ground running.
7. How do you get the best low doc car loan to suit you?
You need a finance expert in your corner. At AAA Finance, our brokers have over 95 years of combined finance experience. We are the finance experts! At AAA Finance we have over 40 different lenders. From this large panel of lenders, we choose the one that will get you the best deal. This ensures that we get your low doc car loan approved at the best possible interest rate, saving you time and money.
Get in touch with the AAA team today to talk more about what a low doc car loan could do for your business. We can even organise a pre-approved low doc car loan. We are here to answer all your questions and concerns as well as walk through the process with you. Do not hesitate – give us a call today! Or find more information about our low doc car loans here.