Understanding Low-Doc
Car Loans
Whether you’ve been in business for years or recently launched a start-up, low-doc car loans can help you get financing for the vehicle you need.
With this car financing option, your precious time is protected, as you won’t have to spend hours going through mountains of paperwork.
Understanding Low-Doc
Car Loans
Whether you’ve been in business for years or recently launched a start-up, low-doc car loans can help you get financing for the vehicle you need.
With this car financing option, your precious time is protected, as you won’t have to spend hours going through mountains of paperwork.
A Low-Doc Car Loan Explained
If you are looking for financing to buy a vehicle, one of the alternatives you will find is a low-doc car loan.
With this financing option, designed mainly for self-employed people and businesses, you can obtain the funds to purchase a commercial vehicle without having to provide a mountain of financial documents to prove you can pay for the loan.
In other words, low-doc car loans allow business owners to finance a vehicle without full financials.
However, the car you buy should be used primarily for business purposes. In fact, more than 50% of the car’s use must be related to a commercial activity to qualify.
Who Needs Low-Doc Car Loans?
Many want to get a car loan, but the process is often challenged by piles of documents. In addition, many businesses, especially small businesses or self-employed individuals, don’t qualify for traditional financing pathways because they do not meet the requirements.
However, low-doc car loans don’t require as many documents, so both self-employed ABN holders and Australian business owners can get the financing they need to purchase a vehicle.
Low-Doc Car Loans’ Benefits
Besides involving a hassle-free process with far fewer requirements than a standard car loan, this type of financing provides many other benefits. The main ones are:
Balloon or Residual Payment Options
When you get secured car financing for your vehicle through a low-doc car loan, you can also secure a repayment plan with a balloon or residual payment.
This option allows you to decrease your initial monthly repayments in order to reduce your fixed monthly outgoings. The Balloon and Residual payments are a percentage of the vehicle value held over as a lump sum repayment at the end of the contracted loan term.
This final payment is contracted so you are required to pay this in the final month of the contract. Your options to repay a balloon is to payout the amount as a lump sum, refinance the balloon – normally for a further 2 years, or trade the car in and roll the balloon amount over to a new loan contract.
Low-Documentation Car Loan Process Detailed
If you want to get a low-doc loan to finance a new or used car and think we can help, just follow these steps:
- Apply now: Contact us and fill out our form (you only have to answer a few questions)
- Get advice: Talk to one of our specialists and find out what you should do to get a low-doc car loan
- Market research: Let’s find the right lender and analyse the low-doc car loans available in the market to spot the best option
- Requirements: Let’s prepare the documentation (don’t worry – it’s low) and make sure you meet the conditions set by the lender
- Go for it! – It’s time to apply for a car loan to obtain the financing your business needs!
Different Low-Doc Loans Options
If you are a business owner looking for a low-doc car loan, you can find different options in the market. These are the most common:
Leasing
Unlike a regular car loan, leasing allows you to use the vehicle owned by the finance company. During the term of the lease, you make payments to the finance company. Once the lease term concludes you are given the option to buy the car, or you hand it back to the finance company.
Chattel Mortgage
A popular contract type for a business car loan. This is a business purposes contract the gives a business ownership of the car from the beginning. This means the car will be included as an asset and liability on the company balance sheet. Tax concessions may also be available, and we recommend this be discussed with your accountant upfront.
Hire Purchase
Not widely used anymore but can still have a place depending on your business. This is a business purposes contract that is an offer to hire the car from the finance company. At the end of the contract, you will take ownership of the car.
Low-Doc Car Loan Rates
We can match your profile with trusted and qualified lenders to ensure that the interest rate on your low-doc car loan suits your financial and business needs!
Our Low-Doc Car Loan Calculator
Do you want to estimate your repayments? Use our low-doc car loan calculator! You only have to enter the loan amount, term, and interest rate, and that’s it!
If you think our car finance solutions may be for you, check out this video and don’t miss any details about our services!
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