9 things you need to know about car and boat loans

Have you got that special car or boat on your mind?

If you need to get it financed, then you’ve come to the right place, here’s nine things you need to know!

Car Finance

Why do I need a car loan and how do I apply for one?

First things first, we need to understand why we may need a car loan.

Is it for business or pleasure? It’s a simple question, but the process of auto finance can be different depending on your answer.

For example, if you need a car loan for personal use, the process and requirements can look something like this:

  1. First, speak to your local MoneyQuest finance specialist who can help you find the right loan.
  2. Complete all required applications and provide any necessary documents (ID, proof of income, assets, and liabilities as well as the details of the vehicle).
  3. Your chosen lender will then review the loan and if approved, will transfer the funds to you or the dealer you’re purchasing the car from.

Can I finance a car with 500 credit score?

Just as if you would apply for any other kind of loan, your lender will assess your credit rating, and depending on your credit score, this can impact the amount you can borrow.

Your credit score can be a number between 0 and 1,000, with anything above 800 considered an excellent score.

If your credit score is sitting at around 500, there may still be plenty of options for you, but you need to consider there may be extra costs and higher interest rates involved.

Did you know we have an easy-to-use Loan Repayment Calculator? Simply punch in your numbers to see how much you would need to pay off your car loan repayments.

Can a business finance a vehicle?


If you are a business owner or self-employed, keep in mind that some lenders may require additional information such as:

  • A valid ABN
  • If you intend to use the car mostly for business purposes
  • Tax returns
  • Proof of business ownership
  • Proof of vehicle insurance
  • Depending on the lender, your business may require a minimum annual turnover, so you may have to provide your business financials. If you also have a steady PAYG income in conjunction with your business income, you may be able to use this to demonstrate your ability to service the loan.

Sometimes it can be difficult to obtain finance as a self-employed professional – that’s where alt-doc loans come in. Also known as self-employed loans, alt-doc loans offer alternative ways to prove income. For more information on this, we recommend speaking to your local MoneyQuest finance specialist.

Can I claim vehicle expenses as a tax deduction?

A company or trust may be able to claim for motor vehicle expenses if they are incurred as a means of conducting business.

Claimable expenses include:

  • Lease repayments
  • Interest on a motor vehicle loan
  • Depreciation
  • Insurance cover premiums
  • Registration
  • Fuel
  • Oil
  • Repairs
  • Servicing

If a vehicle is used for both personal and business use, you must accurately identify and justify the portion of business usage.

For more information, please visit the ATO website https://www.ato.gov.au/Business/Income-and-deductions-for-business/Deductions/Deductions-for-motor-vehicle-expenses/

What kind of business car loans are available?
Thankfully, there are many options available outside of a regular business car loan. Your additional options can include the following:

  • Finance Lease
    • This behaves like a regular business loan, except the lender will claim ownership of the car. The lender will in this case purchase the vehicle and then lease it back to you. Once your lease term has finished, you can choose to pay off the remaining value of the car and take ownership yourself, or refinance the vehicle.
  • Chattel Mortgage
    • This is where you borrow money from a lender to purchase a car and immediately take full ownership of the car. However, in this case the lender can use your vehicle as security.
  • Novated Lease
    • This kind of loan can be helpful for employees who would like to take a loan out on a new or used car using their pre-tax income. To put it simply, it means you are essentially salary-sacrificing your car. Novated leases often have a balloon payment (a lump sum) due at the end of your lease term that can help lower the cost of your regular payments.

Have you already purchased a new car for your business and haven’t financed it? No problem, some lenders are happy to reimburse you the value of the car and set you up under a loan.

If you need more information about the best time to buy a car in Australia, click here

Boat Finance

What is a boat loan and why do I need one?

You may need a loan to finance a boat if you don’t have the cash to purchase one outright. It can be a convenient way to afford the luxury without needing to save a lump of cash.

Another reason you may need a boat is for your business. Keep in mind, you will most likely need to prove the boat will be used for business purposes.

How do I apply for one?

Surprise, surprise! The best place to start is to speak with your local MoneyQuest finance specialist.

The process works in a similar way as a car loan, so scroll up if you haven’t read that part yet!

What is the minimum credit score for a boat loan?
The higher your credit score, the easier it would be to finance a boat. However, some lenders may approve a boat loan for borrowers with a credit score as low as 600.

Need to get an estimate on the repayment amount for a boat loan? Use our handy Loan Repayment Calculator!

Have you considered debt consolidation?
If you have many loans under your name, have you considered consolidating them into one package?

Debt consolidation can help you to keep track of your debts and manage your finances more effectively. You may even pay less on your repayments.

So, if you’re in the market for a car or boat loan, get in touch with your local MoneyQuest finance specialist today via our website.



This article is written to provide a summary and general overview of the subject matter covered for your information only. Every effort has been made to ensure the information in the article is current, accurate and reliable. This article has been prepared without taking into account your objectives, personal circumstances, financial situation or needs. You should consider whether it is appropriate for your circumstances. You should seek your own independent legal, financial and taxation advice before acting or relying on any of the content contained in the articles and review any relevant Product Disclosure Statement (PDS), Terms and Conditions (T&C) or Financial Services Guide (FSG).

Please consult your financial advisor, solicitor or accountant before acting on information contained in this publication.