A Guide to Low Doc Car Loans

Low doc car loans are an extremely popular business loan option for ABN holders. No matter how your business is structured, a low doc car loan will allow you to upgrade or expand your business vehicle/s.

What is a low doc car loan?

A low doc car loan is a type of business loan that is only available to ABN holders. As the name suggests, low doc means low documentation. This type of loan negates the need for vast amounts of paperwork when a business wants to purchase a vehicle for business use. Up-to-date financials, such as tax returns, are not required for a low doc car loan.

What do I need to qualify for a low doc car loan?

1. ABN

Any type of business structure that has an active ABN is eligible to apply for a business loan. Business types can range from self-employed sole traders and partnerships to trusts and companies. Your business must be operational and be generating income. If your ABN is GST registered, then this demonstrates to lenders that your business turnover is greater than $75,000 per annum.

Most lenders require your ABN to be active for a minimum of 12 to 24 months. However, there are some lenders that will accept new ABN’s if the circumstances permit.  For instance, a newly graduated apprentice wanted to remain working for his employer but as a sub-contractor using a new ABN.  The lender was satisfied that the newly qualified tradesman would have a consistent income stream in this situation.  A new work ute purchase was approved via a low doc car loan facility.

2. Car must be for business related use

The car must be used ‘predominately’ for business related use.  The ATO defines ‘predominantly’ as great than 50% use for business related activities. Business related activities include visiting clients, checking in with your accountant or visiting the post office. Please be aware that business related use does not usually include travel between home to work.  

3. Documentation and declaration

Documentation requirements vary depending on your credit history and individual profile, the type and age of asset as well as the individual lender guidelines. Documents may include one or more of the following – bank statements, interim financials such as a Business Activity Statement (BAS), profit and loss statement, or an accountant’s letter. These document/s prove that your business is viable and generating income.

Additionally, as part of your loan contract you will be required to sign a declaration stating you will be able to afford the low doc car loan repayments.

4. Deposit

Some lenders will want some deposit, usually ranging from 10% to 20% of the purchase price for non-asset backed property owners.  A deposit proves to lenders that your business is cash flow positive. If you are an asset backed home owner or investment property owner, many lenders will accept nil deposit, allowing the full purchase price of the car to be financed.

What can be purchased using a low doc car loan?

Any type of vehicle can be purchased using a low doc car loan facility, as long as the vehicle is to be used predominantly for business use.


Most businesses who require a car for day-to-day business activities can access a low doc car loan. Businesses such as accountants, real estate agents, bookkeepers and ride share drivers.


Typically, utes are used by trades people that are travelling to job sites to complete work. To make the ute ‘work ready’ various accessories may need to be added. These can include roof racks, ladder racks, tow bar, bull bar, tool storage boxes and/or canopy.  Accessories can be added to the loan amount and included in your low doc car loan.


Vans have become the reliable modern day ‘workhorses for delivery drivers and couriers. With such a vast array of models it is relatively easy to find the perfect van for your business specific role. Smaller more manoeuvrable vans are great for inner city deliveries with narrow streets and limited parking. Larger more robust vans are more suitable for longer road trips.


If a van is not quite up to the job, then a small to medium truck may be just what your business needs. The ability to transport larger loads can increase efficiency and help to grow your business.

What are the benefits of a low doc car loan?

  • Business tax breaks
    • GST on the purchase price of the vehicle
    • Loan interest expenses
    • ATO instant asset write-off
  • Limited financial documentation required
  • Competitive interest rates
  • Balloon payment options – up to 50%
  • Fixed monthly loan repayments
  • Loan terms from 1 – 7 years

Want to know your approximate monthly loan repayments?  Our easy to use car loan calculator with balloon payment option can help. 

Pre-approved low doc car loan

A pre-approved low doc car loan can make life a lot easy.  Knowing your new car purchase will fit into your business budget is a must for any successful business owner.  A pre-approval can give you more negotiating power when purchasing a new vehicle and it allows you to shop with confidence knowing your funds are approved.

How do I get the best low doc car loan?

You need an experienced finance broker who has access to a large panel of lenders. AAA Finance has over 90 years of combined finance experience and we have over 40 different lenders to select from. Our experience means that you will get an approval at the best possible rate with loan terms to suit you. AAA Finance provides quick and easy finance solutions. Most loans are approved within 24 hours and an over the phone application takes approximately 5 minutes. Let AAA take the hassle out of your business finance needs. Contact AAA Finance today!

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