No More Receipt Keeping

& Maximise Every Tax Refund.

For any company in Australia, managing a fleet—whether it is a single car or fifty vehicles—is a complex operational challenge. It involves more than just selecting the right make and model; it requires navigating a maze of finance options, interest rates, tax compliance, and administrative upkeep.

The traditional method of managing business car expenses is broken. It relies on fading thermal receipts, manual data entry, and the constant fear of missing out on legitimate deductions. Our service introduces a revolutionary concept: “You drive, We manage.” This approach means no more receipts and reporting directly to you, so that you can make full tax claims on the exact amount of the vehicle expenses.

We provide a holistic solution to business vehicle finance that allows business owners to remove the need to keep tax receipts for expenses on business-use vehicles. Furthermore, our service provides business owners with full reporting on all vehicle expenses, including depreciation and interest costs, allowing them to claim every cent in tax from the ATO.

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The Financial Foundation: Understanding Your Car Loan

To maximize the value of your company assets, you must first understand the structure of your finance. When you seek a quote for a new car, the headline price is just the beginning. The true cost is determined by the loan or vehicle finance, the interest rate, and the fees charged by the lender.

A business loan for a vehicle is distinct from a personal car loan. To qualify for true business vehicle financing, you need an active ABN and must demonstrate that the vehicle is used wholly and predominantly for business purposes; there can be minor and infrequent personal use.

When structuring a loan, you will often encounter the term “balloon payment” or “residual value.” A balloon is a lump sum payment scheduled for the end of the loan term. By opting for a balloon, you can reduce your monthly payment significantly, freeing up cash flow for other business operations. However, it is crucial to use a calculator to ensure you are prepared for this final payment. There are always options at the end of the loan to refinance this balloon, pay it out and own the vehicle, or sell the vehicle to pay off the balloon. We will always contact you at least 6 months prior to the balloon payment coming due.

Types of Business Car Finance

There are several ways to structure financing for a business vehicle. The most common in Australia is the Chattel Mortgage.

In a Chattel Mortgage arrangement, your business takes ownership of the vehicle immediately. The lender provides the loan amount to purchase the car and takes a mortgage over the vehicle as security. This structure is highly favoured because it allows businesses to claim the GST component of the vehicle price on their next Business Activity Statement (BAS). It also allows for more flexibility within the structure of the loan; you can reduce the loan amount via a deposit or trade-in, and you can have a balloon payment, both of which can reduce the monthly repayments significantly.

salary sacrifice car lease
new or used vehicle, or multiple cars can be packaged

The Vehicle Solutions Australia Difference

While securing the right car loan is essential, managing the ongoing costs is where most businesses fail. Fuel, servicing, tyres, registration, and insurance are constant drains on resources.

Our service transforms this process. By integrating your finance data with operational tracking, we eliminate the administrative burden. You simply drive. We manage the data and receipts on all expenses. We provide you with one card that allows you to pay for the fuel, tyres, and servicing, and send all of the bills and data back to us for payment and tracking.

  1. No More Receipts The ATO requires substantiation for vehicle claims. Usually, this means keeping every fuel docket. With our system, digital tracking replaces the shoebox of receipts. We capture the data at the source, ensuring that when tax time arrives, your records are impeccable.
  2. Maximizing Deductions Many business owners simply guess their deductions or use the “cents per kilometre” method because it is easier. However, this often results in leaving money on the table. By tracking the actual costs—including the interest on your vehicle loan and the depreciation of the car—we ensure you claim the maximum possible amount.
new or used vehicle, or multiple cars can be packaged

Navigating Interest Rates and Credit

The interest rate you are offered on a business loan is heavily influenced by your credit profile, business structure, and the loan amount. Lenders assess risk. A business with a strong trading history and good credit will secure a lower interest rate than a new startup.

When you apply for a quote, lenders may look at:

  • Time in business (ABN registration date).
  • GST registration status and time registered.
  • Property ownership (shows stability and commitment).
  • The loan amount relative to the value of the vehicle.

Use our online calculators to get an accurate estimate comparing payments across different vehicles, loan terms, and kms. Then book a time with one of our business vehicle specialists who can assist you with a detailed estimate, making sure our business loan solution is right for you.

The Vehicle Solutions Australia Role

Many business owners turn to us to find the best business loan solution. We have access to a panel of lenders and can negotiate on your behalf. We can help you structure the application to improve your chances of approval.

The Application Process The application for business car finance has become more streamlined, but it still requires preparation. Lenders have different criteria for different loans. However, our Chattel Mortgage product is simple, and we can have you approved and settled within a few days. If you need a vehicle on the road immediately, and you’ve been in an established business for more than two years, Vehicle Solutions offers “low doc” loans. These often rely on your ABN tenure of 2 years and property ownership rather than full tax returns and financials.

Managing the Lifecycle of the Vehicle

Your relationship with the vehicle doesn’t end when the loan is approved. You must manage the asset.

  • Depreciation and Finance Interest: As the car ages, its value drops. Our reporting tools track this depreciation accurately, which is a non-cash deduction that reduces your taxable income. The Finance Interest is simply the amount of interest the ATO allows you to claim on the vehicle finance. Vehicle Solutions Australia uses the straight-line ATO-deemed depreciation rate of 25%, and an interest depreciation rate of 7.77% to calculate your tax claim.
  • Balloon Payment: If you choose a balloon structure, you must plan for that final payment. You can often refinance the balloon into a new loan or trade the vehicle in.
  • Payouts: If you want to sell the car before the loan ends, you need a payout quote. This will include the remaining principal plus any early exit fees.
new or used vehicle, or multiple cars can be packaged

Why Car Finance Calculators Are Essential

Never sign a finance contract without understanding the math. Calculators are your best defence against bad deals.

Our service and calculator go beyond simple calculators. We provide real-time analytics on your business vehicle costs. We show you the true cost per kilometre, factoring in the finance, depreciation, interest, fuel, tyres, registration, insurance, and the servicing maintenance components.

GST and Tax Implications

The interaction between GST, loans, and tax is complex. If you use a Chattel Mortgage, you can claim the GST on the purchase price upfront. This provides a significant cash flow boost in the first quarter after buying the car.

However, the monthly payments on the loan are not fully tax-deductible. Only the interest component is deductible; the principal repayment is not. This is where many business owners get confused and where our reporting shines. We separate the interest from the principal in every payment, providing a clear report for your accountant.

Securing the Best Business Loans

To get the best business loans, you need to present your company as a low-risk borrower.

  • Keep your credit file clean. Pay bills on time.
  • Maintain up-to-date financial records.
  • Have a stable ABN history.
  • Choose a vehicle that holds its value (this protects the lender).
new or used vehicle, or multiple cars can be packaged

Conclusion: Smart Finance, Smarter Management

The road to business success is paved with efficiency. You cannot afford to waste time on paperwork or waste money on inefficient financing.

By choosing the right vehicle loan and pairing it with our management service, you achieve the ultimate goal: You drive, we manage.

We handle the tax substantiation. We track the interest. We monitor the balloon payment. We provide the reports that allow you to claim every cent.

Whether you are looking for a quote on a new car, comparing interest rates from different lenders, or trying to understand the impact of a balloon, clarity is key. Don’t let fees and complex application processes slow you down.

Invest in your business vehicle strategy today. Secure the right loan, leverage the right tax benefits, and let us handle the rest. Your company deserves the best finance solution, and you deserve the peace of mind that comes with knowing your car loans and expenses are fully compliant and optimised.

No More Receipts & Maximise your tax refunds.

Small business owners or sole traders have enough to do without having to manage their vehicle expenses, keep all the receipts, and understand what can be claimed and when to claim it.

We package all of the running costs to one simple expense card. Pay all vehicle running costs on this card while we manage all the expenses and provide you with a monthly report to claim every cent in tax and GST, providing valuable additional cash flow.

If you use a vehicle for work try our calculator.

If you drive a vehicle wholly and predominantly for work purposes, enter your vehicle price (new or used), your average annual earnings, finance term, deposit (not required) and final balloon (not required), or click on one of the specific vehicle specials. If you’re happy with the numbers and want a detailed quote or need to know more, we’re always here to help. Click on the button below to book a session with one of our specialists at a time that suits you.

No More Receipts & Claim Every Cent in Tax!

Every vehicle needs fuel, insurance, registration, servicing and a set of tyres at some point.

We package all of this together in one simple expense card. Convenient and simple, you drive while we manage all the expenses and provide monthly reporting so that you can claim every cent in tax and GST.

No more tracking receipts or missing tax claims.

We help you maximise your BAS period returns, with one monthly payment that covers all vehicle expenses. Simply hand the report to your accountant or tax agent every month and benefit in every BAS return.

Just drive your car and use our expense card for running costs.

Our expense card can be used for fuel, tyres, servicing, even windscreens and batteries. The bill comes back to us for payment, and at the end of the month, you get a detailed report showing every single cent spent, making claiming this back easy and 100% ATO compliant.

Frequently Asked Chattel Mortgage Questions

Here are some common questions Australians have about Business Use Vehicles and the finance component call a chattel mortgage

This is one of the most common questions, and the answer depends on several factors, including your business structure and how you use the vehicle. Generally, you can claim a deduction for expenses related to the business use of your vehicle. This can include:

Running costs: Fuel, oil, repairs, servicing, registration, and insurance.

Capital costs: Depreciation (decline in value) of the vehicle.

Interest on a car finance payments.

It is crucial to differentiate between business and private use. You can only claim the portion of expenses related to business use. Our calculator assumes you are using this vehicle wholly and predominantly for business use and the private use is minor and infrequent.

Summary of Differences:

1. Purpose and Eligibility: A Chattel Mortgage is a specialised business finance product. To qualify, the car must be used primarily for business purposes. A normal car loan is generally for individuals buying a car for personal use.

2. Tax Benefits: This is the biggest drawcard for a chattel mortgage. Businesses can often claim the GST on the purchase price upfront, deduct the interest paid on the loan, and claim depreciation on the vehicle as a business asset. Normal personal car loans offer none of these deductions.

3. Regulation: Consumer car loans fall under the NCCP Act, which offers more consumer protection regarding fees, charges, and ensuring the loan is “not unsuitable” for your circumstances. Chattel mortgages are not under this act, which provides less consumer protection but can allow for a quicker, more flexible application process for businesses.

For any financial decision, especially involving tax implications, it is highly recommended to seek professional advice from an accountant or financial advisor.

Here’s a breakdown of the key distinctions:

Primary Use

CM – Business Use (Vehicle must be used predominantly for business, generally 50% or more).

CL – Personal Use (Though businesses can use them, they are generally designed for individuals).

Borrower Type

CM – Businesses, including companies, trusts, partnerships, and sole traders.

CL – Individuals or joint borrowers.

Regulation

CM – Not regulated under the National Consumer Credit Protection (NCCP) Act.

CL – Regulated under the NCCP Act.

Tax Implications

CM – Generally offers significant tax advantages for businesses (GST claim on purchase price, claiming depreciation, and interest on the loan). Consult an accountant.

CL – Generally, no tax deductions are available as it is a personal expense.

Ownership

CM – The borrower (the business) owns the vehicle from the start.

CL – The borrower owns the vehicle from the start.

Security

CM – The lender takes a “mortgage” or security interest over the vehicle (the “chattel”). This is a secured loan.

CL – Often a secured loan (the car is collateral), but unsecured options exist (which usually have higher interest rates).

Interest Rates & Fees

CM – Can sometimes have lower interest rates and more flexible terms due to being a business product and secured.

CL – Interest rates can be higher, especially for unsecured loans. Often has standard fees.

Yes, chattel mortgages are usually a business-ready product (designed for commercial use), allowing GST-registered businesses to reclaim the GST credits on the purchase price and enjoy interest deductions.

We take the vehicle drivaway price and term of the finance, factor in any deposit or balloon payment you would like to include and calculate the finance payment. We then add an estimate of all the vehicle running costs, including fuel/charge, tyres, scheduled services, registration and insurance renewals. This gives us a total vehicle cost over the tax year, by applying ATO tax deductions for the running costs, depreciation and interest, as well as deductions for GST, we provide you with the average cost of that vehicle after tax. For a detailed estimate on your personal circumstances, please book a time with one of our specialists.

Most lenders offer extra repayments, which can help reduce the term of your loan and the overall interest to be paid. Yet, to avoid any additional contract break costs, don’t hesitate to get in touch with us or the financier for a current payout letter.

For business vehicles, the interest paid each month is tax-deductible, as well as depreciation on the vehicle value each year. Get a detailed estimate from one of our specialists and discuss the results with your tax expert on what specific tax deductibility benefits are available.

Still have questions? Contact one of our specialists who can answer all your questions and provide a details no obligation quote..

Calculator & Product Terms of Use.

1. Your Income Estimate

To provide an estimate of your potential tax savings, we rely on the “Annual Taxable Income” information you provide to be accurate. You may need to consult with your tax professional to obtain this figure.

2. Record Keeping & Supporting Documents

Evidence for Claims, How Long to Keep Records and Accuracy and Compliance: You must retain appropriate documentation to support any claims made in relation to tax deductions or business use. Please refer to the ATO website for more information or talk to your tax professional.

3. Staying Informed

Tax rules and obligations can change. It’s your responsibility to stay up to date with current tax legislation. Always consult the ATO website or speak with your registered tax agent or accountant for advice tailored to your personal financial situation.

4. About This Estimate

This document is provided as a general estimate only.

1. The estimated vehicle running costs are based on the vehicle make and model, and the annual travelled km allowance you have chosen. These budgets can vary over the finance term due to inflationary price rises and a change in your km’s travelled. You always have the option to amend your budgets throughout the term.

2. Incidental Vehicle Costs – This estimate does not include incidental car costs such as car washes, minor repairs to dents and scratches. Paying for these costs from the set budgets within this estimate will affect the set budget items and may result in budget changes over the finance term.

3. Projected income tax savings based on the annual taxable income estimate you’ve supplied. These tax savings do not take into account your other personal financial income or expenses. Please talk to your tax professional before making any decision on this estimate.

4. This estimate is based on current ATO income tax and GST rates. If these rates change, your tax savings will be affected.

5. This estimate shows the effect of total tax savings over a weekly and a monthly period. Depending on the timing of your tax/accounting period, your net vehicle cost or cash position may vary from the estimate. For example, if you do your tax refunds on an annual basis, you will only see the tax benefit annually. If you do tax variations and/or BAS returns quarterly, you will see the tax benefit quarterly. Please talk to your tax professional before making any decision on this estimate.

5. This is an estimate only, not a legally binding contract.

This estimate does not create any legally binding obligations for either party. We recommend discussing this estimate with your accountant or tax advisor before making any financial decisions.

6. All Information is General Advise Only

The information and any advice provided within this estimate is ‘general advice’ only. This means that the advice has been prepared without taking into account your full personal objectives, financial situation, or needs. It is not intended to be a substitute for professional taxation advice from a licensed accountant or tax advisor who can consider your unique circumstances.

7. The information is provided in good faith and is believed to be accurate and reliable at the time of preparation.

Vehicle Solutions Australia can not guarantee the accuracy, completeness, or timeliness of the information over the term of the finance, as your personal financial circumstances, such as income and expenditure, can change. We recommend discussing this estimate with your accountant or tax advisor before making any financial decisions.