Luxury car finance from 48+ Australian lenders.

Luxury car tax is charged at 33 per cent on the value above the LCT threshold, which is indexed each year and is higher for fuel-efficient vehicles. It is included in the dealer’s drive-away price and can be financed as part of the total, but it is not recoverable as GST. For a business, the car limit also caps the depreciation and GST claim, so a luxury car is usually financed for its lifestyle or client-facing value rather than its tax position.

Balloons of 30 to 40 per cent over three to five years are common on prestige cars from strong brands with predictable resale values, which keeps monthly repayments manageable. Lenders reduce balloons on models with softer residuals, on very high-value cars and on longer terms. The aim is a balloon comfortably under the car’s expected trade-in value so you have options at the end.

Not necessarily. Rates are driven mostly by the borrower’s strength, the amount, the term and the car’s age and resale outlook, and a new prestige car from a mainstream premium brand is well-regarded security. Rare, modified or grey-import vehicles attract higher rates or a deposit. A broker comparing lenders with an appetite for prestige vehicles usually finds sharper pricing than the dealer’s in-house offer.

Some lenders extend low-doc approvals to prestige and European vehicles for established businesses, typically up to around $150,000 to $250,000 with an ABN of two years or more, property ownership or a clean vehicle finance history. Above that, or for exotic and low-volume models, lenders ask for financials or a larger deposit. Lyft Money knows which lenders like prestige metal and which apply a haircut to it.

Often no deposit is required, particularly for established businesses buying standard assets from a dealer. A deposit is more likely where the business is new, the asset is older or specialised, the credit profile is weaker, or the amount is large relative to turnover. Deposits typically range from around 10% to 30% in those cases. Putting money in reduces the amount financed and can improve the terms offered, but it is not always necessary.

The common ones are an establishment or documentation fee charged at settlement, a monthly account-keeping fee, and a PPSR registration fee for recording the lender's interest in the asset. A brokerage fee may also apply, which we disclose to you in writing before anything is submitted. Some agreements include an early termination or break cost. Fees vary by lender and are typically a modest part of total cost compared with the interest, but they should still be compared.

Lenders publish maximum residual or balloon percentages that fall as the term lengthens, because the asset is worth less at the end of a longer term. For a vehicle, a common pattern is up to roughly 50% on a two-year term, reducing to around 20% to 30% on a five-year term. The ATO also sets minimum residual values for finance leases. A larger balloon lowers monthly repayments but increases total interest and leaves a lump sum to deal with at the end.

It is far less common than it once was. Under hire purchase the financier owns the asset and you hire it, with ownership transferring automatically after the final instalment. Since the GST changes that made chattel mortgage more attractive for businesses accounting on a cash basis, most equipment lending is written as a chattel mortgage or lease instead. Some lenders still offer commercial hire purchase, and your accountant can advise whether it suits your circumstances.

The Personal Property Securities Register is the national register of security interests in personal property, including vehicles and equipment. When a lender finances an asset, it registers its interest so the security is publicly recorded and its priority is protected if the asset is sold or the business fails. It also means a buyer searching the register will see the finance. The registration is released once the contract is paid out, and a small registration fee is usually passed on to you.

A balloon is a lump sum left to pay at the end of a chattel mortgage, which lowers the regular repayments during the term. For example, a 30 per cent balloon on a $100,000 vehicle leaves $30,000 to pay at the end, so the monthly amount is calculated on $70,000 plus interest on the full balance. Balloons are commonly set between 0 and 40 per cent depending on the asset and term, and at the end you can pay it out, refinance it or sell the asset to clear it. A balloon reduces monthly cost but increases total interest, so your broker shows both figures side by side.